Mounting geopolitical tensions and economic uncertainty, exacerbated by factors such as rising tariffs and trade disputes, have compelled organizations to intensify focus on strategic cost management and financial de-risking. This imperative is clearly reflected in facilities management, where an overwhelming 84% of surveyed CRE and FM leaders pinpoint budget constraints and escalating costs to operate as a top area of concern. Consequently, 81% of respondents identify cost efficiency and budget optimization as a leading priority for the coming year.

Operational reliability remains the foundation of effective FM. Business continuity preparedness for mission-critical environments such as data centers, laboratories, hospitals and public infrastructure — where a single operational failure can cascade into high-impact events — is the foremost risk management priority. In addition, forward-thinking FM leaders are:

• Incorporating proactive risk strategies that align with the organization’s core challenges and long-term growth objectives.
• Building business continuity frameworks that address the full range of interconnected risks, such as workforce contingency planning, cybersecurity protections for smart building systems and IoT infrastructure, energy supply reliability, as well as climate event adaptability and preparedness.

A holistic framework will help create a resilient enterprise and elevate the role of FM from a functional service to a strategic business partner.

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.

The modern organization is redefining its relationship with FM providers, prioritizing collaboration and strategic alignment above other factors. A majority (78%) of organizations report a strategic partnership with a deep understanding of their core business as the top selection criteria, emphasizing FM’s elevated role as an integrated advisor. Pricing transparency and cost savings remain a crucial consideration, as do communication and service excellence, as well as technology and data-empowered innovation. Ultimately, the success of FM is built on its ability to combine operational excellence with sophisticated industry insights that deliver results aligned to the organizations’ core business objectives.

The FM industry is projected to expand by more than $800 billion globally by 2030, but faces significant labor shortages to meet surging demand. The aging workforce and insufficient talent pipeline has escalated labor market competition and hiring costs., while exacerbating talent scarcity in rural, remote locations and high-cost-of-living areas.

To bridge the talent gap, FM leaders are implementing robust succession planning and cross-training, while leveraging AI, automation and data analytics to augment human capabilities and productivity. Future-proofing the FM industry through a tech-empowered, digitally native workforce will not only mitigate workforce insufficiency but also present a pivotal opportunity for transformation.

The message is clear. Facilities management is no longer to be viewed as a mere cost center, but a strategic business partner that fortifies resilience, fuels productivity and ultimately creates a competitive advantage.

Download the full report to explore these insights, and consider how they may inform your organization’s path toward a more innovative and future-ready FM operation.