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Outsourcing and streamlining supply chains proves to be the leading cost-reduction measure. Organizations can achieve this by: 

  • Consolidating contracts and suppliers to make the most of volume purchasing power and streamline vendor relationships.
  • Prioritizing providers that demonstrate a deep business understanding and the ability to partner as a strategic advisor.
  • Collaborating with tech-powered providers to create joint cost-saving opportunities; prioritizing those offering self-delivery and integrated capabilities.
     

Technology and data are also critical levers for FM cost control. More than half of organizations are applying technology and AI to automate workflows, while converting real-time data into strategies. This is often combined with data-driven monitoring and benchmarking of asset performance and expenditures to capitalize on cost-saving opportunities.

AI adoption is well underway to transform the FM industry, a trend we expect to accelerate

While nearly one-third of organizations (32%) plan to increase their FM software investment in the coming year, the share marks a decline from prior years (39% in 2024 and 42% in 2023), as organizations face greater uncertainty in capital planning and take a more cautious approach amid broad economic volatility.