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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