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.

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 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.