As the stakeholders of every business get ready to enter a new working year, it is customary that an assessment of what lie ahead for them is done: the opportunities & challenges that are defined by national and international socio, economic, political, or geographic/climatic developments & situations. The forecasts, normally undertaken by established research organisations do help companies and individuals to certain extent to go for strategic planning. And these include market positioning, resource allocation, risk management, tracking the changes in the work pattern, operational efficiency and innovations.
In simpler terms, the Cleaning Industry works around facility/property management, soft services/ housekeeping schedules, cleaning equipment/ chemicals and more importantly waste management. It is uniformly predicted that focused approach to sustainability and net zero goals will dominate the list. The Facility Managers are sure that they would have to embrace more and more technology and play the role of facilitators in driving home the significance of sustainability.
When it comes to facts and figures, it is predicted that creation of more space in healthcare, hospitality, commercial/office and retail will boost the market for cleaning and hygiene processes. However, the hybrid and distant working options in the offices do not offer a fixed cleaning schedule to the FM operators. As one of the FM professionals stated, “a scattered and disconnected work force” could continue posing challenges in 2024 as well.
In effect, the coming years will see the Cleaning Industry depending heavily on advancement in technology like data creation, AI, Digitalisation, etc., smart building technology that will aid in indoor air quality, energy conservation, & productive environment, adoption of innovations and going in for collaborations with the stakeholders.
Training and upskilling of work force is expected to take centre stage to keep with the changing work processes dominated by newer technology, changing customer expectations and unpredictable local and global happenings. But, in all, 2024 paints a picture of positive growth for those who can move with technology and customer centric approach.
Clean India Journal delves deep in two parts on the Trends 2024. The Part I, in the following pages, brings forth the viewpoints of the services segment.
Trends 2024 Analysing Office Space, Housing & Retail Markets
What changes can we expect in the way we work and live, in office spaces and in retail? Which city will offer the most affordable homes in India? What factors will affect a homebuyer’s choice? All this and more in Trends 2024, with global and regional forecasts by Knight Frank, CBRE and JLL in the facilities and asset management sectors. A glimpse
Office Spaces 2024
While significant changes are predicted for offices and workspaces in the UK, the same can be extended to other geographies, including India as well, because this acceleration has been brought about by the single-most important factor, the global impact of the COVID-19 pandemic. Evolving work cultures, technological advancements and changing employee expectations have resulted in the push for hybrid work patterns, coworking spaces and smart office solutions.
Hybrid working
The number of employees having flexible working arrangements, where they split their time between the office and home, blending remote and in-office activities, is growing and has led to changes in how office spaces are designed, utilised, and managed. More organisations are predicted to embrace this approach in 2024, optimising their workspace strategies accordingly.
Flexible office space
Flexible office space providers are evolving their products and services to meet the demands of hybrid working. Offices are emerging as dynamic hubs for collaboration and networking, catering to a diverse professional demographic that values flexibility, community, and innovation. They no longer run places to just rent desks but are catering to dedicated areas for tech startups, creative studios and entrepreneurs. While continuing to offer well-equipped workspaces, they are investing in robust technology infrastructure, virtual platforms to support remote work and collaboration, on-site fitness centres, meditation rooms, and healthy food options for wellness and well-being, thus providing a holistic work environment.
Technology and remote collaboration
Hybrid work culture has brought into focus technologies such as cloud computing, AI, collaboration tools, and virtual meeting platforms as essential for bridging the gap between remote and in-office teams. These technologies will become more integrated, intuitive, and essential in 2024, in supporting a seamless hybrid working experience.
Sustainable Office Design
Sustainability is becoming a key consideration in office design. Eco-friendly materials and energy-efficient systems are being increasingly utilised in office constructions, reflecting a growing consciousness about environmental impact. As corporates eye their upcoming 2030 sustainability targets and re-assess their post-Covid workplace strategy, focus is sharpening on low carbon buildings. Space that is electrified and powered by clean energy is in growing demand, not only because it is resilient to changing regulation but also meets near-term corporate sustainability targets.
Office Space Trends for 2024
Agile Workspaces: Breaking free from traditional layouts, these flexible and adaptable spaces encourage collaboration, boost productivity, enhance well-being and potentially reduce costs. They also incorporate biophilic design elements such as natural light, plants, and outdoor access to foster a connected, productive and well-being-focused workforce.
Smart Office Solutions: These optimize operations with automated systems, intelligent office solutions and seamlessly integrated IoT devices thus streamlining processes, reducing errors, and enhancing the overall work environment. From smart lighting to intelligent scheduling tools and collaboration platforms, these technologies are revolutionising the way we work, making offices more efficient, productive and engaging.
Serviced Office Spaces: These office spaces provide businesses with the agility to adapt to changing market conditions, optimise their workspace utilisation, and reduce overhead costs. They also cater to the preferences of employees who may prefer a hybrid work arrangement, combining in-office collaboration with remote work flexibility.
Housing Markets 2024
In the last year, headlines were dominated by surging inflation and consequential interest rate hikes. Despite these challenges, global economies have displayed surprising resilience, with recent inflation figures suggesting a turning point. What drives this positive shift in outlook? Some prime buyers appear confident that the worst is now behind us. Globally, on the demand side, with inflation receding and interest rate hikes entering their final chapter, buyer appetite has strengthened in some markets. Meanwhile, on the supply side, high construction costs, labour issues and planning delays are collectively contributing to a shortage of new stock entering the market
Housing forecast for India
The affordability for home purchases is expected to improve for the better in 2024, basis the expectation of a 60-80 bps repo rate cut during the year, says JLL’s report on the Home Purchase Affordability Index (HPAI). This will keep buyers’ affordability within a very comfortable range and sustain the momentum in the market in 2025 as well.
While India was not fully insulated from global shocks in 2023, improving domestic inflation levels and India’s economic growth outpacing the rest of the world gave enough headroom to the central bank to maintain status quo through a large part of the year. The response from the residential markets was spectacular, as sales for the first nine months of 2023 rose to approximately 90% of the full-year figures of 2022.
Homebuyers look at multiple factors including but not limited to the prevailing economic scenario and future expectations of income and inflation. Also, employment market prospects, income & job stability and current & future savings targets are equally critical when making home purchase decisions. Affordability levels remain much above the pre-COVID and worst affordability periods for all cities, clearly highlighting the headroom for market growth to continue”, said Siva Krishnan, Managing Director and Head of Residential Services, India, JLL.
Kolkata, Pune and Hyderabad most affordable
While Kolkata remains the most affordable residential market in India among the top seven cities, Pune is expected to follow along with Hyderabad. Mumbai has the most expensive residential market in the country. However, all cities will remain lower than their highest affordability levels seen in 2021, thus they are likely to see robust market activity prevail to the end of 2024.
Retail Markets 2024
Rising consumer demand and the fast-paced tourism recovery continue to boost retail activity across the Asia Pacific region in the post-pandemic era. Shopping malls and physical stores need to differentiate themselves and stay relevant. A few trends listed below would keep retailers ahead of the competition.
Retail media networks as a revenue stream: Retail media empowers retailers to turn their first-party data and audience insights into a profit source. The advantage lies in the creation of a strong income channel.
Mixed-use spaces: Combining two or more asset classes into one building is not new but it has grown more popular in recent years and could play a pivotal role in commercial real estate’s future.
Consumerism slowdown amid sustainability concerns: As people become increasingly aware of the impact their choices have on the environment, they seek out products that are eco-friendly and have a lower carbon footprint. The issue of social responsibility is another driving factor for sustainable consumption.
Adoption of sustainability KPIs to boost customer loyalty: As consumers become increasingly conscious of their environmental impact, they seek out brands that align with their values and positively contribute to the planet. As a result, the second-hand resale shopping market has risen in popularity as a more eco-friendly shopping alternative.
Increase in engagements that recreate physical experiences: Curating every detail across multiple touchpoints that include what people see, hear, smell, taste and feel is part of experience design and it engages people and draws them in.
Strong interest in social experience at retail spaces: For retail business, social factors such as family, community and socio-economic status affect as well as define the lifestyle. An example would be a place where you can participate in community events, find out what is going on in the area and the world, or just relax and enjoy a coffee and a chat.
Unique digital experiences needed to engage, retain customers: In an increasingly digital world, content becomes a primary way to connect with consumers. Personalized content, tailored to customer’s unique preferences can create a positive experience and increase their loyalty to the brand.
Trends 2024 Challenges & Opportunities for the FM Service Sector
Leading service providers share their thoughts on the steps to stay ahead through a proactive and adaptive mindset. The major shifts encompassing the role of FM services in 2024 will brace challenges anticipating shifts to meet changing requirements.
Sustainability: No more a Choice
Rajesh Shetty, Managing Director, Real Estate Management Services, Colliers India takes stock of the present challenges facing facilities management and the deployment of newer technologies as the way forward.
What challenges do you foresee in meeting your services requirements of facilities management specific to 2024?
The advancement in technology and equally its on-ground adoption in the FM space in India has been overwhelming post Covid. This has helped better coordination, logistics support paving way for ease of operations and remote monitoring, further on adding more credibility to completion of complex on-ground tasks. However, the large IT organizations have not seen encouraging responses, specifically to their demands on the return to work, and at the same time the comprehension of service requirement in the hybrid operating environment having not stabilized or matured fully, the overall ability to enhance or fully optimize the workforce productivity continues to pose its own challenges.
Compounding to that, with the inconsistent & unpredictable distribution of work volumes through the week, especially owing to various interruption with intermittent celebrations, FM continues to experience the work scheduling challenges, not only on the rationalization of the human resources capital but also on the diligent consumption of the projected essential supplies. These challenges are also restricting the organization on their ability to deploy more scalable and robust technology, limiting their opportunity on further amplifying the user experience.
With scattered and disconnected workforces, and the diminishing collaborations amongst the various levels of restricted workforce, the subject matter competency and the related analytical skill sets, if not addressed through continuous on-ground and on the job training, could also become an added challenge in the coming years.
What would be your focused approach to sustainability goals and net zero?
With facility manager being well recognized within all organizations, it is imperative for them to take on a leading and active role of, both aggregator and as well the integrator. Further on, facility manager will need to work closely with various sets of internal stakeholders collaborating at various levels with the designated custodians of all key activities. Raising the awareness levels of all these stake holders along with their designated custodians, on the organizations sustainability endeavours incorporating the various prevailing standards & governing certification, would be key to ensuring successful implementation to eventually meet the sustainability goals and net zero mission.
The facility managers will also need to work closely with the investor or developer group and the property owners. As a first step towards fostering right partnership on the sustainability priorities, facility managers will have to articulate the benefits of sustainability to this group and motivate them to get their built environment and the infrastructure upgraded and certified under the net-zero certification.
With a fair self-assessment of the managed property’s key attributes, those being energy, waste, water and carbon footprint and thereafter benchmarking these key focus aspects against some Industry benchmarks, one needs to evaluate their current status and trending patterns. Understanding the inherent designs or any limitations, facility managers then need to identify the first set of focus or priority areas as the immediate opportunity for seamless transitioning into sustainable best practices adoption. The key for the success of adopting sustainability and achieving net zero is to have a very transparent and authentic reporting, and continuous critical review, as this equips them with greater insights on the current practices along with the products currently used.
With many emerging green and sustainable products in the market, the endeavour would be to keep exploring and evaluating avenues to adopt & induct these greener products in the way forward sustainability program.
It would also be prudent to identify and collaborate with some external consultants to put together a progressive blueprint wherein the key would be creating and setting aside a one-time or recurring sustainability budget. The sustainability budget should also have allocations for incorporating technology, as reliability of data tracking and real time reporting, which takes away the dependency on people aspects in reporting, is the crucial factor for arriving at a well-informed strategic investment decision.
Periodic tracking and review of key milestones in a quantified way will help one to assess the progress being on plan, and herein, as well, the continuous conversation and interaction amongst all stakeholders with data substantiated by the activity custodians, will serve as a great implementation tool for all organization to achieve the net zero.
The comprehensive and strategic approach that needs to be developed, could focus on energy efficiency, renewable energy, clean transportation, waste reduction, tracking carbon emission and many emerging government initiatives.
What changes are you likely to make to meet your requirements?
To bridge the gap between the organizations CXO’s articulated vision of sustainability and achieving net zero, and the on-ground designated custodians of various disciplines, it is critical to upgrade the subject matter experts (designated custodians) to take on the role of Sustainability Champions within the system, who could not only raise the awareness levels at the lower level but also be able to infuse effortless rhythm into the execution of the organizations sustainability blueprint.
It is also critical to bust the belief that bringing in sustainable best practices calls for redesigning the infrastructure and comes at a considerable initial investment, which organization would shy away from, owing to the returns not being immediate and certain, given the dynamic work environment and especially having experienced serious business disruption at all levels in the recent past. Also, the migration to adopting technology to track and report on real time basis should not be seen sceptically. Rather organisations should embrace the new age technology even if it requires some initial investment. Eventually data integrity and the repository are crucial for any productive and sustainable business.
Whilst raising awareness at all levels is one key aspect, communication also plays a crucial role. It is imperative for organization to benchmark their current practices and operating parameters and keep broadcasting internally and externally on the incremental progress made towards sustainable business.
Companies that have sustainability at its core, can transform its entire value chain and the business ecosystem. And to ensure the organizations sustainability and net zero program always conforms to the design and certifications standards, a small and empowered committee, with representation at key hierarchy levels, needs to be created.
Way forward, sustainability mindset will no longer be a choice in any business, it will become a MUST!
Prioritizing Occupant’s Feedback
In the coming year, several significant trends are expected to shape the facility management landscape, says Vishal Sharma, VP Client Solutions, Sales and Marketing, PSIPL. What are the major changes that will profoundly impact the industry?
Embracing Technology
Technology has become an integral part of facility management, and its importance will only grow in the coming year. Organizations recognize the need to embrace technology to enhance efficiency and improve service delivery. This includes the implementation of smart building solutions, Internet of Things (IoT) devices, and data analytics to optimize energy consumption, streamline operations, and proactively identify maintenance issues. Companies will invest in advanced facility management software and leverage automation to streamline processes, enhance communication, and provide real-time reporting to clients.
Sustainability and Energy Efficiency
Sustainability has become a top priority for organizations across industries, and facility management plays a crucial role in achieving environmental goals. Companies recognize the significance of sustainability and energy efficiency and will focus on implementing green practices. This includes adopting renewable energy sources, optimizing resource utilization, implementing waste management strategies, and promoting sustainable procurement practices. Organizations will work closely with clients to develop and implement sustainability initiatives that align with their corporate values and environmental commitments.
Enhanced Focus on Occupant Experience
The well-being and satisfaction of building occupants have gained significant attention in recent years, and this trend will continue to grow in the coming year. Organizations understand the importance of providing a positive occupant experience, and their approach will focus on creating comfortable, safe, and productive environments. This will include the implementation of smart building technologies to enhance security, improve indoor air quality, and optimize lighting and temperature control. Companies will prioritize occupant feedback and actively seek ways to incorporate their preferences into facility management practices.
Remote Work and Flexibility
The COVID-19 pandemic has accelerated the adoption of remote work and flexible work arrangements. Organizations acknowledge this shift and will adapt their facility management strategies accordingly. As organizations increasingly adopt hybrid work models, they will support the evolving needs of their clients by providing flexible solutions for managing workspace utilization, implementing contactless technologies, and ensuring seamless connectivity for remote workers. Companies will leverage their expertise to optimize facility operations and create agile work environments that cater to the changing demands of the workforce.
Data-driven Decision Making
Data has become a valuable asset in facility management, providing insights that drive informed decision-making. Organizations recognize the power of data and analytics in optimizing operations, improving maintenance processes, and enhancing overall facility performance. By leveraging advanced analytics tools, companies will gather and analyze data on various aspects of facility management, including energy consumption, maintenance schedules, and space utilization. This data-driven approach will enable organizations to identify trends, predict potential issues, and make proactive decisions to improve efficiency and reduce costs.
FM Professionals Stand for 2024
Vishwas Bhatnagar, Head-Housekeeping, Cadila Pharmaceuticals Ltd
Evolving Service Requirements
Facilities management faces numerous challenges but also gets exciting opportunities. Adapting to a changing work environment, embracing technological advancements, prioritizing sustainability, utilizing data-driven decision making, and adopting a customer-centric approach will be key to meeting the evolving service requirements of this critical industry. By staying proactive, embracing innovation, and collaborating with other stakeholders, facilities management professionals can navigate these challenges and continue to create spaces that enhance productivity, well-being, and sustainability for all.
Sustainability Goals
Achieving sustainability goals and striving for net zero requires a multifaceted approach that spans various sectors of our society. Each individual’s actions count, and together, we can make a significant positive impact on the environment. We must take the necessary steps towards a sustainable and net-zero future today.
Organizations can take significant strides towards achieving net zero and sustainability. Energy efficiency, waste reduction, supply chain optimization, and employee engagement are key areas where organizations can make a meaningful impact. As we collectively work towards a sustainable future, it is crucial for organizations to continuously evaluate and adapt their practices to meet the evolving requirements. We must join hands in this journey, each step contributing towards building a greener, more sustainable world.
Praveen Upadhyay, Head of Facilities and Sustainability
Investment in Technologies
Challenges foreseen in meeting service requirements in 2024 like integration of smart buildings, IoT (internet of things) for real time monitoring, AI-driven predictive maintenance, and cloud-based solutions for efficient data management may involve initial cost of implementing advanced systems. It would also need skilled personnel to manage and maintain these technologies. Data security concerns and the potential resistance to change among existing workforce, ensuring seamless integration of various technologies, and staying updated with rapidly evolving tech trends can pose challenges for effective facilities management. Another challenge related to sustainability expectations in FM includes the initial investment required for green technologies, the complexity of implementing sustainable practices across various facility aspects, the need for clear regulatory frameworks, and ensuring that sustainability efforts align with the organization’s long-term goals. Overcoming resistance to change and consistently measuring and reporting progress are also common challenges in meeting sustainability expectations.
Focused Approach
To approach sustainability goals and net zero, consider implementing energy-efficient practices like LED lighting, HVAC optimization, occupancy sensors, energy efficient appliances/equipment. Utilizing renewable resources and adopting eco-friendly technologies and energy management system. Engage stakeholders and create awareness among them thereby setting measurable targets for carbon emissions and regularly assess and adjust strategies for continuous improvements. Collaboration and innovation are key in navigating the path towards sustainability.
To meet sustainability requirements, the organizations may adopt renewable energy resources, enhance waste management, water conservation, promote eco-friendly practices like use of electric vehicle, eliminate single use plastics, encourage RRR methodologies, etc. Incorporating green technologies and fostering a culture of sustainability among employees can contribute significantly like usage of electric vehicles, carpooling, increase in usage of public transport, etc. Regular monitoring and adjustments to strategies based on evolving sustainability standards are essential.
Soma Chakraborty, Vice President- Group Head, Corporate Communications, Medica Superspecialty Hospital, Kolkata
Complex Building Systems
The trends affecting facilities management in 2024 include new and more complex building systems, increasing building regulations, fast adoption of software and IoT technology, ESG reporting and sustainability and preventive & predictive maintenance. Major emphasis shall be on green practices, adoption of smart building technology, digitization and cybersecurity.
Smart Technologies
Software solutions that help to measure progress in key areas, track and manage energy utilization, and demonstrate regulatory compliance are becoming important day by day. Reduction of carbon footprint, minimizing emission from medical devices, controlling electrical energy and water conservation are some of the key aspects on which organizations’ will be evaluated in years ahead. Smart building technology, Advanced HVAC and energy management technology are other initiatives in sustainability. Controlling costs and supporting environmental initiatives are two most crucial aspects on which facility management will stand in 2024 and all the work will be revolved around these factors.
Top-Down Approach We can either use a top-down approach which forces behavioural change through policy or the bottom-up approach that attempts the opposite: to influence policy through behaviour. When we speak of net zero emissions, we emphasize upon its significance in combating climate change. This requires every corporate to actively measure and provide an account of their emissions correctly, set year on year reduction targets while making provision for such targets in the budget, implement sustainable practices and invest in technologies which are environment friendly. Intent must be there to replace elements that generate emissions, implement sustainable energy sources and opt for digitization. The checklist for building a net zero plan must have carbon footprint calculation, top-level commitment, a clear plan, communication of net zero plans and targets to all stakeholders, staff involvement, identification of carbon hotspots and opportunities to collaborate.
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