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Frost & Sullivan: Mining CAPEX Stokes Demand for Facilities Management in Australia

- Higher Expectations Present Many Opportunities for Facilities Management Providers

SYDNEY, May 24, 2012 /PRNewswire/ -- A remarkable 53 per cent growth in its capital expenditure over 2009-2010 gives an indication of the opportunities afforded by the Australian mining industry. The industry's expansion spawns a need for increased workforce at remote sites, generating demand for facilities management (FM) services. In 2011, the mining industry employed 142,000 people, of which, an estimated 110,000 worked in remote mining locations, and half of them were located in remote sites. The presence of a large workforce has raised the demands on FM services to operate and maintain mining camps and villages.

Intensifying competition is forcing FM service providers to not only provide services to maintain the camp site as efficiently as possible, but also to focus on the wellbeing of residents.

"FM providers are distinguishing themselves through the improved provision of services and facilities for recreation, fitness and entertainment," says Frost & Sullivan Consultant Nelly Appelhanz. "In some cases, nutritionists, fitness and health coaches are provided as part of a service package."

While these services help FM providers stand out in the crowd, they will find takers only if they are cost-effective. Further, mining companies have corporate policies that compel them to employ locally available resources, services and business to support the growth of remote communities. They usually build residential housing and other facilities to retain locals in these communities.

However, these communes could reduce the number of fly-in/fly-out (FIFO) employees, shrinking the sizes of mining camps. FIFO employees' dependence on flights makes them less available than residential employees, and they also incur additional costs for the company by losing productivity and work hours in transit. However, if the nearest town is unable to provide the number of skilled workers required, initial FIFO deployments may lead to a residential workforce.

FM providers need to form strategic partnerships and alliances to overcome logistical challenges of remote locations and offer a more holistic and cost-effective solution. They have to find ways to attract and retain qualified labour in remote areas to provide services. By 2018, 90.0 per cent of FM services in these locations are likely to be outsourced.

"In remote locations, where mining companies already contend with the issue of work force shortage, the use of external service providers becomes a productivity enhancement tool," notes Appelhanz. "Also, specialist equipment, compliance requirements and the remote location of work sites drives the demand for expertise to safeguard the health and safety of employees."

If you are interested in more information on this study, please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at You can register for the pre-recorded Analyst Briefing by clicking on the following link: Analyst Briefing: Australian Market for Facilities Management in Remote Sites.

For a virtual brochure of this study, go to

Analysis of the Facilities Management Market for Remote Sites in Australia is part of the Building Management Technologies Growth Partnership Services program, which also includes research in the following markets: Integrated FM Market in Australia and New Zealand, Benchmarking Successful IFM Companies in Asia Pacific, Temporary Housing Structures in Australia, and Fire and Smoke Detection Devices Market in Australia. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

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Analysis of the Facilities Management Market for Remote Sites in Australia


Donna Jeremiah
Corporate Communications – Asia Pacific
P: +612 8247 8927
F: +612 9252 8066

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402

SOURCE Frost & Sullivan



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