NEWS
Challenge the markets and survive the downturn (22/10/2009)
The cost of living in the UK is continuing to soar. Rises in mortgages and the price of food and energy have all put pressure on the household budget leaving the average UK disposable income at its lowest level for eleven years. All areas of the economy have beenaffected in this downturn and there are still difficult times ahead for sports venues and visitor attractions, which are likely to be exposed to a downturn in visitor numbers as the recession bites.
Peter Watts, managing director of Leisure Support Services, a business that delivers facilities management services to sport and leisure venues, gives four ways for sports venues and visitor attractions to buck the trend and survive the ongoing economic decline.
1. Contract out non-core activities
Peter said: "A popular method of reducing costs has been to bring facility services that have previously been contracted out back in-house. The perceived cost saving comes from cutting out the margin that contractors expect in return for their services. However, the added value gained from employing contractors should far outweigh any cost.
"Whilst there are many processes necessary to manage venue facilities including, recruitment, training, health and safety and quality assurance, venue operators are predominantly concerned with the end result. The benefit of contracting out FM services therefore means that venues can focus more attention on their core business of attracting patrons and maximising customer satisfaction, leaving the daily operational matters to the contractor.
"As a FM company solely operating in the sport and leisure market, our job is to make our clients' facilities as welcoming as possible and to consistently achieve the high standards that clients and their customers expect. If we do not perform, we jeopardise our contract, so there is always a motivation for us to do well and be proactive."
2. Take the opportunity to innovate
Peter continued: "Whilst sports venues and visitor attractions are stretched and the outlook appears bleak, now is a better time than ever to shake things up and to look at innovative ways to prosper. By communicating with your contractors and highlighting the urgency to save costs, novel solutions should be identified and pursued in partnership.
"Using Wimbledon as an example, we have worked closely with the waste suppliers and our client and through changing the way waste was collected and moved from site we managed to increase the waste recycling rate from 22% up to 50%, which reduced the amount of landfill tax our client had to pay. Another example is at the Kia Oval where we introduced motion detectors to the majority of rooms, which turn lights off automatically when not in use as a means of reducing energy bills.
"The two examples above are positive initiatives which cut costs but also reduce the carbon footprint and increases positive PR at each venue. At a time when event organisers are demanding stringent environmental criteria when selecting a venue to host a conference or exhibition, such initiatives may also increase business opportunities."
3. Analyse the staff team
Peter said: "Whilst there are a number of things that can be done to reduce costs outside of cutting staff numbers, it is also important to ensure that the facilities team are operating as efficiently as possible. In the sport and leisure market it is often the case that venue operators 'over staff' the FM team to ensure that high standards are maintained to the level that will satisfy their patrons. However, contractors experienced in the sport and leisure market can use their knowledge to suggest alterations to staffing structures, shifts and levels of supervision that may increase efficiency and reduce hours without negatively affecting standards.
"Alternatively, it may also be more cost effective to employ more staff. Regular planned preventative maintenance (PPM) is necessary for any venue or attraction and much of this is undertaken by specialist contractors that specialise in air conditioning, lifts, plumbing etc. However, after a review of the venue's assets it may be more cost efficient to employ a full time electrical engineer or mechanical engineer to undertake the PPM rather than employ specialist sub-contractors.
"As a FM contractor, we have experience delivering services to many prestigious sport and leisure venues up and down the country including the All England Lawn Tennis Club, Old Royal Naval College and Ricoh Arena. If there are savings to be made within an existing operation, we are best placed to achieve them whilst maintaining high standards."
4. Ensure high standards
Peter concluded: "Last but not least, it is essential to maintain high standards. Businesses are often quick to focus on generating savings from their non-core activity, such as cleaning or maintenance. At sports venues and visitor attractions however, effective delivery of such services is integral to achieving the high standards necessary to maintain loyalty and customer satisfaction.
"If lights aren't working, conference rooms are too cold or too hot, exhibits are littered with finger marks and access to the venue is restricted because of security cutbacks, the visitor experience is spoiled, potentially leading to reduced visitor numbers and less business opportunities in the future.
At a time when budgets are being scrutinised throughout the industry, it is a good opportunity to review current venue operations to increase efficiency and cut out waste. Through engaging key contractors and using their expertise to encourage best practice and innovation it will be possible for sports venues and visitor attractions to not only survive recession but come out stronger and more profitable than ever before.
