Future first

Bill Heath: Who wouldn't want to be involved in some of the world's greatest construction projects?

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.

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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.