BCIS Five-Year Facilities Management Forecast
Maintenance Costs To Rise Nearly 6% This Year
Comments from Joe Martin, lead consultant at BCIS.
Maintenance costs are expected to rise 5.7%, in the year to the fourth quarter of 2023 and between 2.5% and 3.1% annually for the next four years.
Overall, they’re expected to rise 17.6% in total, in the forecast period to the fourth quarter of 2027.
Cleaning costs are forecast to rise somewhat faster due to pressures on labour costs, up to 25.6% over the forecast period.
They are forecast to increase 9.0% in the year to the fourth quarter of 2023.
Further increases of 5.5%, 2.8%, 3.3% and 2.9% are expected in the remaining years of the forecast period.
Energy prices are extremely volatile but are expected to fall over the forecast period.
They may continue to rise in the short term as previous increases work their way through to consumers. But they are set to go down for the rest of the forecast period, as the markets stabilise.
Maintenance demand, as measured by Construction Repairs and Maintenance annual output, is forecast to increase by around 6% over the forecast period.
After falling over 3% between 2022 and 2023 it is expected to recover slowly over the next four years.
We have assumed that much of the cost of the recladding of buildings in the aftermath of the Grenfell fire, as well as initiatives to tackle backlog maintenance and to cut carbon emissions will be accounted for in the Construction Repairs and Maintenance annual output, although some of it may be included in new work output.
Restricted Budgets And High Demand Will Put Pressure On The FM Market
The FM market will be subject to competing pressures of restricted budgets and growing needs over the next few years.
Buildings in both the public and private sectors need substantial investment.
Backlog maintenance, particularly in the public sector, needs addressing and improving the environmental performance of all buildings is essential if we are to meet our climate change commitments.
FM managers must develop whole-life plans to demonstrate the long-term costs of short-term cuts to protect their budgets and the built environment.
The cost and availability of labour are anticipated to be a major barrier to the delivery of maintenance services.
