The Nordic FM and The Real Estate and building sector in the Nordic countries -state of the art-

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Kauko Tulla and assistance of the whole group VTT Building and Transport

Finland

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Staff breakdown by location:

Oulu 310

Outokumpu 39

Jyväskylä 128

Tampere 332

Lappeenranta 11

Espoo 2 137

Others 21

Total 2 982

Units:

VTT Electronics

VTT Information Technology VTT Industrial Systems

VTT Processes VTT Biotechnology

VTT Building and Transport VTT Information Service

VTT Corporate Management and Services

Staff: 2 982

Turnover: 219 M€

• Basic govern. funding to research on VTT’s own initiative 34 M€

• Jointly funded projects 97 M€

• Commercial activities 88 M€

VTT IN BRIEF

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Objective of the NordicFM project

• Better and more efficient FM operation of buildings and real estates concerning both owners and users

• Increased value creation in core activities in both the public and the private sector

• Good physical working environment and well-being for the users of buildings and real estates

• To contribute to the development of FM from Nordic point of view

• To reinforce good existing traditions within management and operation of facilities

• To increase the professionalisation of FM in the Nordic countries by understanding the total perspective of FM including economical and organisational issues

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Realisation Network of

• private companies and

• public bodies, trade associations and

• education and research institutions

in Finland, Sweden, Norway, Denmark and Iceland

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Partners

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Economy and timetable of the project

693 340 Sum

400 365 Own econ.

292 975 Grant

Sum (€)

A three year project from 2003 to 2006

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Steering committee

• Ole Emil Malmstrøm (Denmark), Project leader

• Tore Haugen (Norge)

• Jan Bengtsson (Sweden)

• Suvi Nenonen (Finland)

• Sigfus Jónsson (Island) SECRETARIAT

Poul Henrik Due

dfm-net@teknologisk.dk

National actors in each countries

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Activities

• Three network meetings and one steering committee meeting per year

• Three newsletters per year

• Partcipation and arranging workshops, seminars, conferences

• Articles in national papers and conferencies Meetings:

• September 2003 Helsinki, Finland

• 8.-9. 3. 2004 Copenhagen, Denmark

• 16.-17.9.2004 Reykjavik, icland

• 11.-12.11.2004 Oulu, Finland

• 10.-11.3.2005 Lillehammer, Norway

• 8.-9.3.2005 Sweden

• 24.-25.11. 2005 Copenhagen, Denmark

• June 2006 Trondheim

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Present action: state-of-the-art of 3 items

• Workplace management

• Operational and Service management

(some examples are presented in the next 4 slides)

• Outsourcing

• Including Public/private partnership (PPP)

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Contents of State-of-Art -Reports ^(example)

1. Size and structure of FM 2. Main issues

3. Trends

4. Key Players 5. Drivers

6. Education 7. Research

8. Professional and industrial bodies and associations 9. Others

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(* to be checked

2171 24,3

Total

74 (*

662 (*

8.9 Sweden

72 (*

325 (*

4.5 Norway

97 29

0.3 Iceland

94 490

5.2 Finland

123 665

5.4 Denmark

sq.m./person Building

stock, mill.

sq.m.

Population, mill.

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Trends (contracting out, in-house, organising,

workplace, shareholders value, telework, etc.) ^(example)

Outsourcing and cooperation strategy.

Sweden

Market orientation, outsourcing, development of facility management as support-functions I public properties.

Norway

New regulation separate public properties and municipal funds.

Iceland

Contracting out FM services has expanded including outsourcing, workplace and its efficiency, partnership, internationalisation.

Finland

Outsourcing as a usual way to act. Workplace and

workplace design very important to add value. Sales and lease back more common.

Denmark

Trends

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organising/attending to FM interests ^(example)

IFMA Sverige, EuroFM, Fastighetsentreprenörerna, Sceem, Fastighetsägareföreningen. Fackföreningar, Förvaltareföreningar

Sweden

NBEF, NfN, FN, FOBE Norway

Icelandic Facilities Management Association (FASTI)

Iceland

Rakli, FREF, FIFMA/IFMA, EuroFM Finland

DFM Denmark

Professional bodies

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Structure of the Real Estate and Construction Cluster

Building Industry Building Industry

Real Estate Industry Real Estate

Industry

Civil Engineering

Building Product Industry Building

Product Industry

Sector Related Industry

Building Services Building Services

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BY THE INVOLVED COUNTRIES

EURO 75 BILL. IN 2002 PRICES

Sweden (18,0)

Norway (19,3)

Finland (19,2)

Denmark (€ 18,2 bill.)

25,7 %

24,1 % 25,8 %

24,4 %

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THE VALUE OF

TOTAL CONSTRUCTION AS % OF GDP

0,0 2,5 5,0 7,5 10,0 12,5 15,0 17,5 20,0

Finland Sweden

Norway Denmark

Nordic Countries EU and EFTA

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NEW RESIDENTIAL CONSTRUCTION

VOLUME-INDEX 1985=100

0 20 40 60 80 100 120 140 160 180 200 220

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

FINLAND SWEDEN NORWAY DENMARK

NORDIC COUNTRIES EU AND EFTA

1985 1990 1995 2000 2005

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RENOVATION AND MODERNIZATION

VOLUME-INDEX 1985=100

80 90 100 110 120 130 140 150 160 170 180 190 200

FINLAND SWEDEN

NORWAY DENMARK

NORDIC COUNTRIES EU AND EFTA

1985 1990 1995 2000 2005

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Construction Clusters in Finland

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Conclusion

• We are making effective and real cooperation and development work in the FM field in the Nordic

countries.

• Real estate and construction market in the Nordic countries are

• moderate size, but

• high class

• knowledge based

• ICT-driven

• service oriented

• open market