CoreNet Global Survey reveals lack of skilled people to deliver advanced workplace solutions as key challenge to corporate real estate industry
A survey of CoreNet Global members has revealed that the top challenge facing the corporate real estate (CRE) industry is finding skilled people to deliver advanced solutions in complex workplace environments. Other challenges highlighted by the research include implementing cost savings initiatives, growth in new markets and developing new products and services.
Johnson Controls Global WorkPlace Solutions, Director of Global Product Development, Richard Mitton, said: “The number of organizations who are delivering or planning to deliver critical environment services means there will be an increasing requirement to employ skilled personnel. However, there appears to be a problem in finding enough professionals to fill these opportunities.”
The joint survey from CoreNet Global and Johnson Controls GWS examined the challenges facing the CRE profession and the resulting impact on business success.
Key findings include:
- 64 percent of respondents had introduced new technology in the past two years, driven primarily by the need to improve processes (91 percent)
- More than half of respondents said that new technology increased productivity by more than 20 percent
- Fewer than 30 percent of real estate Directors are the key decision makers in the implementation of new technology, although they are responsible for delivering the outcome
- As organizations expand in emerging markets the lack of appropriate skills are the biggest challenge
- 68 percent of respondents measure successful performance in new markets through by business uptime and reliability
Other constraints preventing CRE teams from effectively supporting core business activities, through the introduction of new services and technologies and moving into new markets, were poor organizational and technical infrastructures, lack of investment / budgetary constraints, management expertise and lack of leadership engagement and employee acceptance.
The survey also indicated that while cost savings initiatives are a key challenge facing the CoreNet membership, cost was not a principal measure of service effectiveness.
“Our Corporate Real Estate 2020 research findings reveal an important change in how cost cutting is viewed,” said CoreNet Global Vice President of Communications Richard Kadzis. “Because of economic uncertainty, companies have maintained a predominant focus on cost management, but we expect the conversation to shift from a value protection mentality to a more proactive attitude toward value creation. In other words, companies can’t stay competitive indefinitely without investing in future growth, so the pressure for effectiveness will balance out the ongoing mandate for cost efficiency. It’s part of the never-ending tug of war or paradox between efficiency and effectiveness.”
Mitton summarized: “CRE is rising to the challenge, but as an industry, we need to overcome and remove barriers to ensure the impact of the community is maximized. There is also a need to introduce appropriate measures that clearly show the value that CRE groups bring to the organizations they support”.
The CoreNet Global survey was completed by 174 CoreNet Global respondents.