BREXIT AND THE UK FACILITIES SECTOR
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1 BREXIT AND THE UK FACILITIES SECTOR DOMINIC PONNIAH & ANDY DE SALLIS CLEANOLOGY 11 th APRIL 2018
2 2
3 AGENDA Introduction Background to Brexit Impact on the industry Brexit strategy & planning 3
4 Would you EU-turn? 4
5 Would you EU-turn? 5
6 INTRODUCTION
7 INDUSTRY OVERVIEW 9,000 UK cleaning companies 24 Billion industry 700,000 people employed 7
8 INDUSTRY OVERVIEW 9,000 UK cleaning companies 24 Billion industry 700,000 people employed UK s Food & Drinks Manufacturing 4x size UK s Music Industry 8
9 INTRODUCTION Award-winning family business 9
10 INTRODUCTION Award-winning family business Top 50 UK cleaning company 10
11 INTRODUCTION Award-winning family business Top 50 UK cleaning company London HQ, Manchester office 11
12 INTRODUCTION Award-winning family business Top 50 UK cleaning company London HQ, Manchester office 500 staff 12
13 INTRODUCTION Award-winning family business Top 50 UK cleaning company London HQ, Manchester office 500 staff Operate in 3 key sectors 13
14 INTRODUCTION Award-winning family business Top 50 UK cleaning company London HQ, Manchester office 500 staff Operate in 3 key sectors 14
15 LABOUR BREAKDOWN - UK WIDE 18% Non-UK nationals 15
16 LABOUR BREAKDOWN - UK WIDE 18% Non-UK nationals 24% Non-UK cleaning industry 16
17 LABOUR BREAKDOWN - UK WIDE 18% Non-UK nationals 24% Non-UK cleaning industry 40% Non-UK Doctors 17
18 LABOUR BREAKDOWN - UK WIDE 18% Non-UK nationals 24% Non-UK cleaning industry 40% Non-UK Doctors 79% Non-UK 18
19 LABOUR BREAKDOWN - UK WIDE 18% Non-UK nationals 24% Non-UK cleaning industry 40% Non-UK Doctors 79% Non-UK 61% EU 19
20 LABOUR BREAKDOWN - UK WIDE 18% Non-UK nationals 24% Non-UK cleaning industry 40% Non-UK Doctors 79% Non-UK 61% EU 65% EU 20
21 LABOUR BREAKDOWN - UK 21% 500 staff 34 countries 21
22 LABOUR BREAKDOWN - UK 21% 500 staff 34 countries RoW 18% 22
23 LABOUR BREAKDOWN - EU 61% 500 staff 34 countries RoW 18% 23
24 INDUSTRY VIEWPOINT 67% Price of equipment / materials * Source: Cleaning Matters. 24
25 INDUSTRY VIEWPOINT 67% Price of equipment / materials 46% Workforce * Source: Cleaning Matters. 25
26 INDUSTRY VIEWPOINT 67% Price of equipment / materials 46% Workforce 40% Investment plans * Source: Cleaning Matters. 26
27 INDUSTRY VIEWPOINT 64% Want to leave single market 27
28 INDUSTRY VIEWPOINT 64% Want to leave single market 82% Want to hire easily from EU 28
29 HAVE THEIR CAKE AND EAT IT! 29
30 BACKGROUND TO BREXIT
31 352 DAYS TO GO 31
32 WHO CAUSED BREXIT?? 32
33 THAT LL BE ME... 33
34 1. Open borders 2. FREE MONEY (BENEFITS) 3. STRONG ECONOMY 34
35 1. Open borders 2. Free money (benefits) 3. Strong economy 35
36 1. Open borders 2. Free money (benefits) 3. Strong economy 36
37 WHO ELSE IS RESPONSIBLE?? 37
38 AND THAT WAS ME 38
39 IMPACT ON THE INDUSTRY
40 RESOURCING 40
41 RESOURCING Eastern European boom 41
42 RESOURCING Eastern European boom Falling pound 42
43 RESOURCING Eastern European boom Falling pound Brexit uncertainty 43
44 RESOURCING Eastern European boom Falling pound Brexit uncertainty Low unemployment in UK 44
45 RESOURCING 45
46 RESOURCING Cleaning Operatives Area Managers Regional Managers 46
47 EQUIPMENT & MATERIALS 47
48 EQUIPMENT & MATERIALS Import tariffs 48
49 EQUIPMENT & MATERIALS Import tariffs New customs process 49
50 EQUIPMENT & MATERIALS Import tariffs New customs process Border delays 50
51 EQUIPMENT & MATERIALS Import tariffs New customs process Border delays Bureaucracy R E D 51
52 EQUIPMENT & MATERIALS Possible import tariffs New customs process Border delays Bureaucracy Increased costs 52
53 DECISIONS ON HOLD 53
54 CLIENT CUT BACKS 54
55 55
56 MORE INVESTMENT 56
57 MORE INVESTMENT STAFF TRAINING 57
58 MORE INVESTMENT STAFF BENEFITS STAFF TRAINING 58
59 MORE INVESTMENT BETTER TOOLS STAFF BENEFITS STAFF TRAINING 59
60 MORE INVESTMENT CAREER OPPORTUNITIES BETTER TOOLS STAFF BENEFITS STAFF TRAINING 60
61 clean Prepare for change More Supervisors LIVING WAGE Facilities team EU vs. UK STAFF BENEFITS ROBOTICS? EU UK Shift length RESOURCE BREXIT PLANNING
62 KEY MESSAGE: KEEP CALM AND PREPARE FOR A PRICE INCREASE 62
63 RESOURCING 63
64 RESOURCING 64
65 RESOURCING More full-time cleaning operative jobs 65
66 RESOURCING More full-time cleaning operative jobs More night cleaning shifts 66
67 RESOURCING More full-time cleaning operative jobs More night cleaning shifts Longer shifts for part-timers 67
68 RESOURCING More full-time cleaning operative jobs More night cleaning shifts Longer shifts for part-timers Real Living Wage operatives 68
69 RESOURCING More full-time cleaner jobs More night cleaner shifts Longer shifts for part-timers Real Living Wage operatives Drive higher productivity 69
70 EQUIPMENT & MATERIALS 70
71 EQUIPMENT & MATERIALS 71
72 EQUIPMENT & MATERIALS 72
73 EVERY CLOUD 73
74 ACE CARD 74
75 UK TAX HAVEN? 75
76 UK TAX HAVEN! 76
77 THANK YOU 77
78 QUESTIONS??? 78
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