July 202 2020 0 / Faci Facilita FacilitateMagazine.com litateMa lita teMagazi teMa gazine.c gazi ne.com ne.c om
Taster edition
EXTERNAL AFFAIRS The lo lockdown ock kdo down w llessons essso s ns on on housing and commuting that will influence futu ure e future workplace support
FAC I LITATE J U LY 2 0 2 0
CONTENTS AN A LYS I S
6 SWE PT AWAY The CHSA sees no immediate let-up in the demand for cleaning supplies 8 CU E THE QUE UE S Retail FMs face complex challenges as the nation’s high street shops reopen
COVER: SHUTTERSTOCK / ALAMY
10 H OW WE ’VE MAN AG E D Four FMs explain how they’ve coped with the Covid-19 crisis 12 CLO SER TO HOME Will organisations source extra office space in local neighbourhoods to help cut employees’ commutes? 13 NEWS MAK E RS Ten top stories from Facilitate online
WHAT WE DO
Facilitate – the magazine and online news content resource of the Institute of Workplace and Facilities Management (IWFM) – keeps IWFM members and others up-to-date on all workplace and facilities management issues, ensuring you are informed of the latest developments and thinking.
COM M UNI TY
KNOW LE DGE
3 4 PE R SPE C T IV E S The four most interesting and insightful opinions on FM this month
44 PROTECTING PEOPLE How the FM sector can protect workers from exploitation and modern slavery
3 9 A BIT A BOU T YOU Robert Szabo-Laborcz, Scout Store facilities and maintenance manager
46 WATERTIGHT FMs must ensure that water systems are safe for the return to work
3 8 T HINK TA NK Our takeaways on topics and trends that could affect your business decisions
49 CATERING TAKEAWAYS Sudden closure of commercial kitchens presents a multitude of challenges
40 JU LY @ IWF M The people and projects currently informing IWFM activity
50 HIGH PRIORITY Prioritising maintenance jobs requires an asset-risk-weighting approach
41 C A LL S TO AC T ION The events and training options that deserve your attention
52 COLD COMFORT Get refrigeration wrong and you risk large lawsuits – and colleagues’ lives
LONG FORM
16
HOME AND AWAY The longer term impact that Covid-19 is likely to have on housing and transport will ultimately affect how workplace managers go about their jobs.
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THE VIRAL FRONTIER An entirely new relationship between office workplace and user is on the cards. But what can we realistically expect?
28
SMART RESTART Falling costs and an evolving workplace offering add to a fresh focus on the real value of responsive, data-driven building management tech.
– your award winning magazine
Facilitate is the current holder of the Best Magazine (10-32,000 members) award, as voted for by judges at the Association Excellence Awards, a body which assesses the media brands of trade bodies, professional membership organisations and associations. We have an ambitious programme for 2020 and look
forward to continuing to produce content that meets your needs. We always work ahead, so please contact us if you have an angle or format we should be pursuing. Got a story? email editorial @facilitatemagazine.com
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F RO NT D E S K A N A LY S I S
MT
MU
PS
NF
MARIE TURNER, workplace and facilities manager at LiveWest
COVID- 1 9 RE SP O NSE
REPORTS FROM THE FRONTLINE
MARKETA URUBOVA, facilities manager at Study Group PAULINE SIMKINS, head of FM at Historic England and chair of the IWFM South West Regional Committee
The pandemic has necessitated a swift response from facilities managers and their teams. Here, four FM professionals tell of their trials and tribulations in the fight against Covid-19 – and what it means for the future of the role in their organisations
NICK FOX, deputy director of Capital Projects and Estate Management at North Bristol NHS Trust
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THE MOST SIGNIFICANT CHALLENGES FACED MT: Pace of change versus access to resources. We have a lean FM team to cover three main office sites and multiple hub offices across the South West. Travel between sites stopped at the start of the lockdown and hub offices closed. We quickly developed ‘working-buddy bubbles’ to cover operations to mitigate the risk of any direct impact on the team from Covid infection. This ensured we could manage the main office sites which remained open two days per week throughout lockdown. This approach continues to manage potential outcomes from track-and-trace practices. MU: When the majority of workplaces were closing and FMs had to prioritise exiting staff, I was faced with the challenge of keeping 200 people safe in a residential setting. It highlighted the importance of continuity planning and the expertise and instincts that FMs acquire / build / develop. My education in infection control provided me with a framework for making progress in this unfamiliar situation. My top priority was the wellbeing of our community and looking after the mental health of my team was also crucial. PS: Initially, it was torture closing buildings. Albeit with very good reason, it went against everything I’ve ever worked for. I’ve always fought hard to manage risk and resources to keep buildings open, so seeing them close one by one was nothing short of heart-breaking. However, I was quickly implementing plans to safeguard unoccupied properties with weekly inspections whilst supporting my usually site-based teams in transitioning to dining rooms tables and home-schooling. We were all dealing with feelings of guilt for what we weren’t doing W W W. I W Fwith M .Owhat RG .Uwe K and overwhelmed
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LO N G FO R M
E X T ER N A L FAC TO R S
HOME In just three tumultuous months, the homes we live in and the ways we get to and from them have become much more significant components in what many now see as a considerably more nuanced workplace equation. Simon Wicks assesses how the built environment beyond the office doors may affect the future health and wellbeing of workers
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LO N G FO R M
E X T ER N A L FAC TO R S
but it’s also become a mental shelter, a sanctuary; the only place where you can go, ‘OK, I can breathe’.” Under lockdown, says the founder of research organisation Centric Lab, the “utility” of our homes has changed. Hitherto, for many of us, our homes ha ave been places where we would mostly y eat and sleep. Now, as well as socialising in them (if only virtually), educating ourr children in them, managing sickness and recovery in them, and working out in them, we are, of course, working in th hem. As w As we e lea l ve e lockdown, with our homes seemingly sett to play an increasingly routine role as a an extended workplace, do they offer tthe flexibility of space and quality of utillities we need? Do they provide suffic cient warmth, peace, natural light and n heallthy ventilation? Camargo, w whose research investigates links between n the design of living environmentss and mental and physical health, says th he answer to these questions is a definite no. Her work is in finding a distinct relationship between environmenta al stress and susceptibility to illness. The he stresses she is looking at – noise, airr and heat pollution, lack of ventilation an nd temperature regulation – are more com mmon in built-up areas and in areas of socio o-economic deprivation.
HOME Makin ng housing fit forr working purpo ose The tech hnological ‘test’ has been passed, and a greater leve v l of working from home seems an inevitable comp mponen e t of the en e future knowledge workspace. But what abo out the houses from which we now expect workers to perform? How can we ensure tha h t they are fit for working pu p rpose? “Th here’s been a psychological change in the way in whic wh hic ich we see ee e our o home,” ou explains cog gnit n ive neuroscientist Araceli Camargo. “It’s a literal physical shelter
& AWAY
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LO N G FO R M
SMART BUILDING TECH
SMART R E S TA R T The Covid-19 pandemic has increased demand for contactless solutions and social distancing applications, making intelligent space management a priority. Falling costs and an evolving workplace offering add to an intensified focus on the true value of responsive, data-driven building management tech. Bradford Keen reports
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LO N G FO R M
SMART BUILDING TECH
C
ovid-19 has revealed two valuable insights so far: remote working is not only possible but favourable for many, and that, despite this, the workplace remains fundamental to organisational culture, collaboration and, for some, wellbeing. The challenge for businesses, says David Williams, smart places and real estate industry lead at Microsoft, is in providing assurances to those employees returning to the workplace; to balance the amount of space required with the ability to keep
that space “safe and healthy”; and to integrate ongoing remote working into the workspace equation. Smarter buildings can help deliver these assurances, says Williams. He talks of three smart tech focus points for returning employees – human systems, building systems, and communication protocol. Human systems include access, occupancy and spacebooking systems so that employers can guarantee that on-site personnel numbers do not exceed safe limits and prevent unnecessary employee journeys.
Building systems include the typical FM services – cleanliness, noise, lighting, ventilation, air quality, temperature – but ‘smartened’ to, for example, identify which areas have been cleaned and when, monitor air quality and increase ventilation levels to bring in more air from outside. Finally, it is critical to communicate these solutions so that employees have confidence in the steps their employers have taken to ensure their safety. Ben Waber, president and cofounder of people analytics software provider Humanyze, narrows the
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INSIDE 58 59 59 60 61
Compass acquires food and health tech start-up Balfour Beatty ‘focuses on the longer term’ Interserve wins contract at Alder Hey hospital Malek Sukkar discusses management of Covid-19 PPE waste Comment: Economic plan gets turned on its head
SUPPLY SIDE
FINANC IAL RE SULTS
WILLMOTT DIXON SHOWS STRONG ORDER BOOK BUT WARNS ‘COSTS WILL RISE’
O U TS O U RC E D S E RV I CE MA RK E T N E WS
W O R D S : FAC I L I TAT E T E A M
C
onstruction and interiors company Willmott Dixon reported strong headline financial results for 2019, but warned that construction costs would “inevitably” rise because of the Covid-19 pandemic. Rick Willmott, chief executive (pictured), said that while the company maintained a strong forward order book, the concomitant supply problems and decline in productivity would affect projects during 2020. “I think we need to be realistic that output reductions linked to socialdistancing measures, coupled with a possible lag in the supply of some materials from overseas, will inevitably have a continued impact on project prices and programme timings in the short to medium term,” he said. The predictions were made as the company unveiled results for the year to 31 December 2019. Pre-tax profit slipped from £37.5 million to £31.3 million and turnover also dropped from £1.32 billion to £1.25 billion, giving the company a 2.5 per cent pre-tax margin. The company ended 2019 with cash reserves of £93.1 million, a rise from £90.5 million in the previous year. Repeat business accounted for two-
thirds of orders in 2019, and 75 per cent of turnover was procured through framework contracts. Its interiors business saw a turnover of £149 million (2018: £125 million), and the building arm’s turnover was £1.097 billion (2018: £1.198 billion). Willmott said the healthy performance in 2019 gave the company a “good platform” to face the “challenges created by Covid-19”.
But he also warned that some projects might not go ahead as expected. “While we have a healthy forward order book that stands at more than £1 billion, it’s inevitable that some projects may be delayed or postponed owing to the current economic situation created by Covid-19.” All of its sites remained open and only three were closed briefly at the peak of the Covid-19 outbreak. One-way systems and GoPro cameras had been deployed to monitor work and maintain site safety, said Willmott. But he pointed out that the new working measures would hamper progress. “We now expect all sites to remain open, although Covid-19-related safety measures and availability of materials will mean that output levels will be reduced compared to before the pandemic. “While this will inevitably impact upon pre-pandemic expectations in terms of timescales and budgets, I really appreciate how supportive our customers are being on this issue.”
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S U P P LY S I D E
BUSINESS NEWS
GRAEME DAVIES writes for Investors Chronicle
Weeks to view
CO M M E NTARY
ECONOMIC PLAN GETS TURNED ON ITS HEAD
W
e all knew the figures for the UK economy would be bad when they came in for March and April, as the Covid-19 shutdown took hold. But the scale of the slowdown as detailed by Office for National Statistics was still jaw-dropping. The decline in GDP in April of 20.4 per cent was the biggest ever recorded and explains why the government is scrambling to revive economic activity over the summer. It seems the Bank of England’s scenario of a 25 per cent contraction in GDP across the second quarter wasn’t so fanciful. The rolling three-month figure to the end of April of a 10.4 per cent reduction in GDP surpasses even the 2008 financial crisis and 1978–79’s ‘Winter of Discontent’. Few have been immune. Some FM players will have benefited from the additional funding being ploughed into the NHS and the increased demand for hygiene and deep cleaning services from across the economy. But many FMs these days operate across diversified sectors, as this is thought to be prudent practice in normal times, as weakness in one sector can be offset by redeploying resources elsewhere. In April manufacturing fell by 20 per cent, construction output by 40 per cent, and the accommodation and food services sector by 88 per cent. The sector worst hit was air transport, which fell by 92.8 per cent. All of these use FM suppliers to some extent while those servicing offices look set to remain underemployed for months to come. Those trading updates we have seen have been broad-brush and predictably downbeat, so the forthcoming results season for the UK’s main companies will be keenly scanned for more detail. The scale of the collapse renders understandable the government’s bids to open up the economy sooner than the scientific community might like. Millions of people are on the government’s short-term payroll through the furlough scheme, so the sooner the economy’s wheels start grinding again, the better. But the tax take will be down on previous years and unemployment will spike as those coming off furlough find their jobs no longer exist. What is certain is that this government’s economic plan has been turned on its head. The scale of government borrowing to keep the economy afloat means extreme measures are likely to be required to pay back this debt in the coming years, especially as another punishing round of austerity is unlikely to go down well with the electorate. Indeed we would see another rash of private sector involvement in providing public services as part of the solution to the government’s economic dire straits, which may benefit FMs once more, but first we need to get the economy up and running and sift through the rubble of this economic earthquake.
“UNEMPLOYMENT WILL SPIKE AS THOSE COMING OFF FURLOUGH FIND THEIR JOBS NO LONGER EXIST”
GRAEME DAVIES newsdesk@facilitatemagazine.com
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A month of sobering tales Week commencing 27 Apr
Insulation and building products specialist Kingspan recorded a solid performance before Covid-19 ripped through the economy. Its group sales for the first quarter came in at just over €1 billion – just 3 per cent behind last year. Kingspan’s global reach helps, with the firm reporting decent performance in the Americas, Australasia and the Middle East. Q2 figures are likely to be far more sobering, with the company reporting a 35 per cent slide in global sales in April with UK sales down more than 50 per cent.
Week commencing 4 May
Waste services business Biffa reported on the swift action it had taken to rein in costs in the face of the pandemic. Although Biffa continued to serve municipal customers its industrial and commercial division [I&C] and its landfill operations saw a halving in revenues in the early weeks of the shutdown in the UK. Management reacted by furloughing 35 per cent of employees in the I&C division and cutting wages elsewhere in the business while engaging with its banks to maintain liquidity in the business.
Week commencing 11 May
Supplying non-discretionary services and having staff designated as key workers helped to cushion the economic blow to safety and regulatory compliance business Marlowe. In some places staff struggled to gain access to client sites but in most cases this work has been deferred until Q2. Indeed, Marlowe’s ability to provide return-to-work audits for workplaces as well as being able to deliver Covid-19 health and safety services means it should be well placed to pick up extra work as the year goes on.
Week commencing 18 May
Waste management firm Augean lodged a claim with HMRC for repayment of £11.1 million of landfill tax, which it had previously paid out for engineering materials, known in the sector as the ‘fluff layer’ in landfill cell construction. The firm lodged this claim after several other waste operators made similar moves in relation to landfill taxes that they believe they have overpaid. Augean says it is due repayments going back to 2013. Other operators have had success with regard in particular to taxes paid on this ‘fluff layer’. WW W. I W F Mpart .O RG K The £11.1 million was of a.U payment of £40.4 million paid by Augean in December.
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INDICATORS
4/5
The facts, figures and projections worth being aware of
85%
Rates Economy
48% staff at home are less data-safe
48%
Nearly half of commuters will change the way they travel to work because of the pandemic, choosing to cycle or to continue to work from home.
Long hours 7th on work stress list
UK employees cite long working hours as the seventh most common cause of work-related stress. It was listed as the number one problem in 2018.
Source: Bank of England (bankofengland.co.uk)
A report from Tessian claims that nearly half of employees are less likely to follow safe data practices when working from home. (Email security firm Tessian)
7
th
Consumer Price Index (CPI): The CPI 12-month rate was 0.5 per cent in May, down from 0.8 per cent in April. The CPIH (including owner-occupiers’ housing costs) inflation rate was 0.7 per cent in May, down from 0.9 per cent in April. Price dips in motor fuels and recreational and cultural goods were the key downward contributions to the change in the CPIH 12-month rate between April and May. Rising prices for food and non-alcoholic drinks made a partially offsetting upward contribution to change. Source: www.ons.gov.uk
Employment
National Minimum Living Wage
(Perkbox)
81% 48% want to alter commute
Bank of England base rate: 0.1 per cent as of 19 March 2020
(Workthere)
(Secom)
(Hitachi Capital)
Source: GOV.UK
A poll of UK flexible office providers shows 85 per cent are positive about the next 12 months.
About 80 per cent of shoppers say they are cautious about visiting high street retailers now that they are reopening, while 83 per cent would visit a store if they thought it had strict enough safety measures.
More than 80 per cent of SMEs in the business service sector plan to continue remote working post-Covid-19, but only 34 per cent already had a remote working policy in place, while 48 per cent had to create one in response to the pandemic.
VAT rates: Standard rate — 20 per cent Reduced rate — 5 per cent
85% see hope ahead
4 out of 5 would drop shops
81% SMEs will keep remote working
DATA
U S EF U L S TAT I S T I C S
41
Category of Current Hourly worker hourly rate from rate April 2020
41% face mental health risks
About 41 per cent of the UK population is at risk of mental ill health because of the pandemic.
25 and over £8.21
£8.72
18-20
£6.15
£6.45
£3.90
£4.15
21-24
(Universitat Oberta de Catalunya)
Under 18
Apprentice
(under 19 or aged 19 or over and in the first year of their apprenticeship)
48%
£7.70 £4.35
£8.20 £4.55
Real UK Living Wage
TOLocation ACCESS THE of Hourly rate FULL VERSION worker from April 2019 OF FACILITATE UK Living £9.30 Wage MAGAZINE, JOIN IWFM Living £10.75 WLondon W W. I W F M .O RG .U K Wage
(Liftshare)
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