FM Business Daily prides itself on helping our readers. The team is always on the look out for content that will be useful for you and recently, this report from the Competition and Markets Authority’s (CMA) crossed our desks. If you haven’t seen it, or haven’t had the time to look at it properly, fear not – we’ve done it for you!
FM companies operating in, or seeking to enter, the public road and railway infrastructure market could gain a significant strategic advantage from the CMA latest civil engineering market report.
The report, which examines competition, procurement and barriers to entry in public infrastructure delivery, provides detailed insights that FM providers can use to sharpen their competitive positioning, identify growth opportunities and engage more effectively with public sector clients.
Shedding Light on Market Challenges
One of the report’s key contributions is its detailed analysis of market dynamics. It highlights persistent challenges facing public authorities and contractors, including uncertainty in project pipelines, inefficiencies in procurement, and regulatory complexity. For FM companies, these findings offer a clearer picture of client pain points, allowing them to tailor services that support better planning, delivery and long-term asset performance.
The CMA also draws attention to inefficiencies caused by fragmented supply chains and excessive subcontracting. FM providers, particularly those offering integrated or bundled services, can use this to position themselves as stabilising partners capable of reducing complexity, improving coordination and delivering better value.
Opportunities in Early Engagement and Innovation
The report places strong emphasis on the need for improved pipeline visibility and longer-term funding certainty. FM companies can use this intelligence to plan workforce development, technology investment and regional expansion with greater confidence.
Early contractor involvement is another area highlighted by the CMA. FM firms that engage earlier in the project lifecycle, during scoping and planning stages, can help public authorities develop more realistic project scopes, cost profiles and maintenance strategies, strengthening their role beyond traditional post-construction services.
Barriers to innovation and scaling are also identified, creating an opening for FM companies to differentiate themselves through new technologies, data-driven asset management, sustainability solutions and cost-saving maintenance approaches.
Procurement Reform and Competitive Advantage
Procurement inefficiencies feature prominently in the CMA’s analysis. Complex frameworks, inconsistent standards and duplicative accreditations are all cited as increasing costs and limiting competition, particularly for smaller suppliers. FM companies can respond by aligning their internal processes with emerging standardisation efforts, making bids more efficient and competitive.
The report also gives FM firms a stronger evidence base to advocate for streamlined procurement frameworks and consolidated accreditation systems, both of which could reduce overheads and widen access to public contracts.
Addressing Risk and Collaboration
Risk allocation between public authorities and contractors is another area of concern. The CMA notes that risks are often misallocated, driving up costs and discouraging participation. FM companies with strong compliance, lifecycle planning and operational expertise are well placed to offer collaborative risk management models that improve outcomes for all parties.
Barriers to Entry Under the Spotlight
The CMA’s findings on barriers to entry and expansion are particularly relevant to FM providers looking to grow their infrastructure presence. Incumbency advantages, high accreditation and compliance costs, complex procurement processes and limited access to skilled labour were all identified as significant constraints on competition.
While some barriers, such as capital requirements and technical expertise, are inherent to the market, the CMA concludes that others, notably procurement and regulatory processes, are actionable and could be reformed to support greater competition and innovation.
Chance to Shape the Market
Crucially, the CMA is inviting industry feedback. Facilities management companies are being encouraged to respond to consultation questions on whether barriers to expansion should be prioritised over barriers to entry, and which regulatory obstacles most limit smaller suppliers’ ability to compete or scale.
By engaging with the consultation process, FM firms have an opportunity not only to voice concerns but to help shape future policy recommendations.
Positioning for Growth
Overall, the CMA report serves as both a diagnostic and a roadmap. By aligning strategies with its findings, facilities management companies can strengthen relationships with public authorities, demonstrate their value in addressing systemic challenges, and secure a more prominent role in the delivery and long-term stewardship of the UK’s road and rail infrastructure.
Industry observers suggest that those who act early on the report’s insights are likely to be best placed to benefit as the market evolves.
