Learn more about the key trends due to hit the facilities management sector in 2023 and how you can adjust your business by reading our blog.
As we reach the end of the year, it’s time to start thinking about the trends that will shape facilities management (FM) in 2023 and what they mean for your business.
As we’re all aware, the COVID-19 pandemic has caused nearly three years of disruption in FM. However, the market was valued at $63.97 billion in 2020, and it is expected to reach $71.43 billion by 2026.
FM has had to rapidly adapt over the last few years, but it’s no stranger to change and these changes are set to continue into 2023.
Being aware of current changes and requirements in the industry can help to ensure facilities management companies stay competitive and up to date with the latest changes. From sustainability to technology, i-FM’s Trends & Opportunities Report 2023, outlines the key trends to be aware of and we’ve summarised these to help you get a better understanding.
Let’s dive into these trends and how they’re being driven.
Key trend 1: Sustainability and efficiency
Sustainability is high on the agenda for many businesses, but it’s becoming increasingly important for field service businesses.
In fact, the US and European Union have announced plans to reduce emissions by at least 55% by 2023 which has left more and more businesses looking for ways to reduce their carbon footprint.
There are a number of key factors driving sustainability in facilities management, including:
- Growing consumer demand - the demand from consumers to buy from more environmentally friendly businesses is growing with 62% of consumers saying that it’s more important for companies to behave in a more sustainable and eco-friendly way than before the pandemic.
Customers are becoming more and more informed about the brands they spend with and want to opt for more sustainable brands.
- Legislation - changes to legislation surrounding energy consumption in buildings has led to more facilities management organisations looking to align their businesses to emerging and changing government regulations.
- Energy costs - record-high energy costs mean facilities management companies need to look for more efficient ways to light, heat or cool buildings to save on energy costs and maintain profitability.
You can find our top tips for sustainability in your business: Sustainability in field service management: Top tips for reducing your carbon footprint.
Key trend 2: Remote and hybrid working
While this was a prominent trend in 2022 as a result of continuing lockdowns, it’s set to continue into 2023. Remote and hybrid working is here to stay and this new way of working provides challenges for FM teams.
So, what are these key challenges?
- Downsizing - fundamental shifts in working locations has led to many businesses looking to downsize on space, which has required facilities managers to think more strategically about space management.
- Resource management - facilities management teams need to provide the right resources and services for unpredictable peaks and troughs in office attendance. When employees are unable to find desks or meeting rooms, it results in wasted time and productivity across the business.
- Additional considerations - when spaces are not occupied fully throughout the working day, facilities managers need to consider the cost of the space, equipment equipment maintenance, and energy usage to ensure that employees can use the space effectively when required.
So, how can these challenges be overcome?
Facilities managers will need to look at how building assets can be managed more accurately and efficiently through the use of data and automation which allows FM to make more informed decisions.
We’ll take a closer look at the use of data in the next section.
Key trend 3: Data and IoT
Leading FM companies are now using the Internet of Things (IoT) and data analysis to implement data-driven strategies to provide better solutions, improve efficiency, improve customer service, and increase ROI.
In an increasingly competitive industry, it’s essential for FM organisations to utilise data and automation to achieve the following goals:
✅ Remaining competitive
✅ Reducing business risk
✅ Monitoring, analysing and maximising asset and equipment performance
✅ Enhancing customer services
Solutions provided by IoT allow FM organisations to collect, store and analyse the data that is essential for replacing estimates and guesswork with accurate numbers that provide a more accurate picture of how a space is used and where improvements can be made.
As a result, FM businesses can look to improve maintenance schedules and energy usage, such as heating, cooling and lighting processes to limit use where possible, allowing businesses to improve efficiency and effectiveness. Consequently, businesses can improve efficiency and effectiveness to save costs and improve customer service.
Key trend 4: Predictive maintenance
Downtime that occurs as a result of building or equipment maintenance can cost businesses hundreds of thousands and even millions of pounds.
Therefore, it’s essential to ensure that equipment is functioning at optimal levels at all times.
Predictive maintenance allows technicians to know before a piece of equipment fails, which allows them to respond quickly, sometimes even before a customer knows there is a problem. The data collected can provide insights into how the equipment works and how likely it is to fail.
This provides a number of benefits, including:
- Reduced downtime
- Extended machinery life
- Saved time
- Saved resources
- Faster problem diagnosis and fixes
Key trend 5: M&A deals remain a consistent characteristic
Mergers and acquisitions reached peak numbers during the COVID-19 pandemic and this doesn’t look set to change anytime soon.
The uncertainty surrounding the market and the economy may prompt some sellers to look for opportunities more quickly and that can attract buyers too. As a result of the FM market experiencing huge growth over the next few years, many buyers see FM as an opportunity to expand or develop a stable business with a secure future.
In addition, the sustainability agenda being undertaken by a range of FM companies has led many to utilise M&A to remove old technology or acquire new net zero technology.
Digital technology and data will be key to transforming facilities management for the future, driving efficiency and minimising the environmental impact of the industry as a whole.
Organisations that are looking to remain competitive and survive in a tough economic climate will look to utilise the right technology to provide them with data to drive business growth and improve customer service.
BigChange is the complete Job Management Platform that’s helping field service businesses across the UK to win more work, take control of their operations and deliver winning customer experiences.
Find out how BigChange can help your business, book a free consultation today.
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