Future first

Bill Heath, managing director of Mace Macro International, looks back on six years of operations in the UAE, the buzz of mega project involvement, and what the next year has in store for FM professionals

fmME: How does Mace Macro International operate?

Bill Heath: Mace Macro International (Macro) is part of the Mace Group, provider of professional management solutions for the construction and property industry.

I formed Macro in 2002 with a couple of colleagues who I’d worked with previously to provide facilities management services, initially to support clients in the United Kingdom.

We have since grown and now operate across Europe, the USA, Canada and in the Middle East, employing 500 professionals.

fmME: When and why did Macro set-up operations in the UAE?

BH: Macro’s operations in the UAE date back to 2003 when it was engaged to provide FM strategic advice to the Jumeirah Beach Development, a Dubai Properties project. Occupying 22 million square feet of prime beach front consisting of 40 high rise towers, the development included residential and hotel accommodation as well as significant retail, entertainment and leisure facilities.

Our role entailed reviewing the design as it developed operationally, and we were additionally required to assess the initial service charge model for the development, something which was new at the time in Dubai. Ultimately, our work led to the creation of IDAMA, the FM arm of Dubai Properties.

As for why we’re here? As we won other consultancy projects we recognised Macro could not grow significantly without a permanent presence in the UAE.

Plus, the market challenges are fantastic. Projects of significant size, scale and diversity were, and still are, a challenge too hard to resist for us. The region has tremendous ambition and we want to help shape that.

fmME: How does the FM business model differ in the Middle East and what is Macro’s regional USP?

BH: The FM business model does not really differ that greatly in the Middle East. It is probably at a stage where the UK was some five to 10 years ago, but it is rapidly catching up as one would expect with the pace of development. There is a difference though across the GCC, with some countries being more advanced than others in terms of thinking about FM and the benefits it can bring. One further difference is that the role of FM in Dubai and Abu Dhabi tends to cover community environments much more, with a mix of residential, commercial and leisure facilities to look after.

Plus, a major challenge in managing and maintaining projects in the Middle East is ensuring service charges are both appropriately assessed and controlled transparently.

Macro operates independently from direct service provision, allowing us to ensure services are performance driven and within agreed cost parameters. Identifying service partners who are able to work to exacting standards and are willing to learn is the key to our success.

Macro’s USP is the approach of providing independent FM management, consultancy, and service delivery

fmME: Did you foresee the economic correction coming late last year?

BH: I think the economic correction was waiting to happen and just a question of time. It was inevitable one way or another, and particularly with the local pace and speed of development in the UAE. The level of property speculation certainly could not be sustained, while the credit conditions in the USA became the catalyst for the worldwide correction, which we are now emerging from.

In terms of the affect on Macro, we were fortunate to have started our business early in the year, and were quite established in the region.

Even though many new developments were put on hold, or even cancelled, the demand for quality facilities management services has been growing and will continue to do so. One upside of the correction is that resources are now more readily identifiable, and willing to re-locate if necessary than they were during the boom.

fmME: What are the current market challenges and how are you meeting them?

BH: The current market challenges stem mainly from being paid on time, educating potential clients about FM and seeking long term project opportunities in order to give the business stability.

Clearly many companies have had their cash flow affected by the credit situation. It is a question of tight monetary control and working with clients to support them where possible. Being flexible is important and not turning to the contract unless absolutely necessary. There are many developments across the GCC where FM needs are becoming more readily recognised, and part of our role is to educate potential clients about the long term benefits of managing their facilities operations.

fmME: What does the next 12 – 18 months hold for the FM sector?

BH: One would hope that market conditions over the next 12 - 18 months can only get better.

Developments are now coming online and being handed over, while new projects across the GCC region are announced from time to time, so we’re seeing some light at the end of the tunnel.

Furthermore, recognition of the FM industry through the formation of the Middle East Facilities Management Association (MEFMA) illustrates Dubai Government’s understanding of its relevance. And there is the potential scale of the sector in terms of economic impact - some pundits have indicated the FM industry is worth over 80 billion AED.

We’ve also seen competition stiffening over the past year and, ultimately, costs for FM services will remain under pressure for some time as end-users leverage the economy to their advantage.

Mace Macro International

Bill Heath is managing director of Mace Macro International and chairman and founder of Mace Macro UK. Heath formed Macro UK in late 2002 with the support of former colleagues, and became chairman of Macro UK and managing director of Mace Macro International - the division which delivers FM services to the UAE and wider Gulf region - in 2008.