Smaller FM providers making a mark despite busy year of mergers and acquisitions

In the year 2025, the facilities service market experienced a wave of consolidation, with prominent providers acquiring smaller, more specialized suppliers to broaden their range of services. Despite this trend, industry experts assert that having a substantial market share and economy of scale does not necessarily translate to superior service quality. Mike Packham, owner of consultancy Bernard Williams Associates (BWE), points out that clients may receive better attention and service from smaller providers as they constitute a larger portion of their business.

Glen Cardinal, CEO of Platinum Facilities, attests to the advantage his firm gains from being a smaller entity. He recounts a scenario where a frustrated client in dealings with a large provider is considering a switch to Platinum Facilities due to the accessibility to decision-makers and a direct line to the owner for accountability and improved service quality. According to Cardinal, being smaller allows his company to be more agile, responsive, and in better control of service quality compared to larger, bureaucratic organizations.

Packham emphasizes that smaller organizations are capable of fostering strong client relationships and providing additional services through partnerships with other entities. In the realm of data analytics, which is becoming a key battleground between larger and smaller suppliers, Packham notes that big firms can afford to have in-house data experts. However, smaller firms are increasingly outsourcing this function to specialist organizations that offer data analysis as a service.

Cardinal concurs that smaller companies face challenges in retaining talent and must work diligently to provide a supportive environment for personal and professional growth. He stresses the importance of fostering engagement and creating a culture where employees feel valued and integral to the organization, thus enhancing retention rates. In light of Packham’s observations, Cardinal mentions that Platinum Facilities recently hired a data analyst and systems expert to bolster its capabilities in digital maintenance and energy performance.

In conclusion, while 2025 witnessed substantial M&A activity in the facilities service market, smaller FM providers have demonstrated their ability to deliver personalized, attentive services that set them apart from their larger counterparts. By offering more agile and responsive solutions, leveraging specialized partnerships for data analytics, and prioritizing employee retention and engagement, smaller FM providers continue to carve out a niche in the competitive industry landscape.