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“While there is some information on the level of new build activity within the education market, the level of RMI (Repairs, Maintenance and Improvement) activity has always been difficult to quantify due to the fragmented way budgets are managed and controlled.
However, AMA Research have recently published a unique review assessing the Education RMI market in terms of overall spend, sector splits, spend programmes, levels of responsibility etc, which provides a unique insight into this £2 billion+ market.”
Priced at £625, the report is currently available from AMA Research Ltd,
Summary:
Education RMI Market £million 2003/04 – 2011/12
 While there is some information on the level of new build activity within the education market, the level of RMI (Repairs, Maintenance and Improvement) activity has always been difficult to quantify due to the fragmented way budgets are managed and controlled.
However, AMA Research have recently published a unique review assessing the Education RMI market in terms of overall spend, sector splits, spend programmes, levels of responsibility etc.
The total market for building related RMI works in the non-residential sector is estimated at around £16 billion at contractors output levels. Of this, public sector works account for around £4.5 - 5 billion and private sector work for over £11 billion. Education RMI work cuts across both public and private sectors and is currently estimated to be worth around £2.4 billion – a major sector in overall RMI work. As shown above, growth has been steady in recent years, underpinned by chronic repairs backlogs across the state schools, higher and further education sectors. Over the medium term, we anticipate that the recession may result in a slowdown in growth rates in investment levels in RMI, but overall demand will be sustained by the need for essential reactive and cyclical RMI, while planned maintenance programmes may be a necessary alternative to newbuild where costs need to be tightly controlled.
Within the public sector, schools constitute the largest area of activity, estimated to be worth around £1.3 –1.4 billion a year, equivalent to around a third of all public sector construction RMI output. In addition, independent schools, universities and further education colleges combined account for an estimated £1 billion at contractors output levels. The largest sector is that of state schools with a combined estate of around 100million sq m. in the UK. Primary schools and secondary schools account for most RMI work undertaken, with special schools, nurseries and pupil referral units being niche markets.
Independent schools account for approximately 10% of education RMI expenditure. Over the last 5 years, RMI expenditure has grown steadily, underpinned by the need to keep buildings in peak condition to attract new pupils. Over the medium term, however, the recession may impact on this as there has been an increase in school closures in 2009, while indications are that overall pupil numbers may fall this winter.
RMI work in the higher education sector – mostly comprising the 100+ universities- is estimated at over £500m and accounts for over 20% of education RMI output. The total estate size is approximately a quarter the size of the public sector schools estate, but Universities include a wide range of student accommodation, research, sports and leisure facilities. The further education sector educates over 3 million students at over 400 institutions, though RMI expenditure levels are much lower due to more limited facilities.
In terms of RMI provision, the market is highly fragmented and localised due to the wide range of services provided under the RMI heading. In the state schools sector, however, at newer schools (re)built under long-term DBFO contracts, RMI services are typically provided under 25+ year concessions by large facilities management companies, while other sectors adopt a wide range of service provision arrangements. AMA Research’s report “Education RMI – UK 2009-2013” is available in hard copy or electronic format for £625
AMA Research |
