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