FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
Maintenance costs, as measured by the BCIS All-in Maintenance Cost Indices, are set to rise 17 per cent by 4Q 2029, according to the latest forecast data from the Building Cost Information Service (BCIS).
Cleaning costs, mainly driven by labour costs, are expected to rise by 27.5 per cent over the forecast period, while BCIS expects energy prices to fall by sixper cent over the same period.
Repair and maintenance output rose by 8.5 per cent in 2024, outperforming new work output, which was down by 5.3 per cent on 2023.
Public housing repair and maintenance increased 14.2 per cent, while private housing rose by 7 per cent. Non-housing repair and maintenance increased by 8.5 per cent annually.
BCIS forecasts repair and maintenance output will grow by 8.2 per cent over the next five years.
Dr David Crosthwaite, Chief Economist at BCIS, said: “The repair and maintenance sector faces a multitude of challenges, from increasing obligations to maintain safe environments to the impact of ongoing economic pressures and uncertainty.
“Increases to employers’ National Insurance contributions and the National Living and Minimum Wage from April will have a significant effect on payroll expenses. As with the rest of construction, the sector is also constrained by skilled labour shortages.”
He added: “We expect growth to slow over the forecast period. Public spending is still highly constrained and will likely impact the growth of public housing, public non-housing and infrastructure repair and maintenance. Private non-housing repair and maintenance output is likely to be affected by rising costs, with economic uncertainty pushing asset owners into postponing routine maintenance and causing further delays and backlogs.”
