FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
The latest quarterly forecast for the FM sector from the Building Cost Information Service (BCIS), reveals maintenance costs, as measured by the BCIS Private Sector Maintenance Cost Index, are set to rise by nearly 19 per cent in the next five years,
According to the BCIS, current economic constraints mean that revenue expenditure in both the public and private sector will be “under attack” and “properly constructed budgets” are required to maintain the country’s building stock.
It also adds the need to reduce the carbon emissions of buildings may see a “shift from revenue to capital expenditure” as backlog maintenance is carried out in refurbishment schemes.
By 2Q 2028, construction repair and maintenance annual output is expected to grow by 8.5 per cent.
BCIS anticipates that the growth will be negative for the first two years (-1.4 per cent in 2023 and -0.4 per cent in 2024) but expects low single-digit growth thereafter for the remaining forecast period.
In the same period, cleaning costs are forecast to increase by 20 per cent, up 5.7 per cent in the year 2Q 2023 to 2Q 2024, and by around three per cent per annum thereafter.
Although energy prices remain variable, BCIS expects costs to decline by more than 43 per cent over the next five years.
In the year to 2Q 2023, they rose by 23.3 per cent but, as the markets stabilise, BCIS expects costs to cool and to fall from 2025 onwards.
Annual percentage change in repair and maintenance output and private sector maintenance, cleaning, and energy costs
Source: BCIS
Note – Output is full year on full year, costs are changed from 2Q to 2Q of the previous year
BCIS Chief Data officer Karl Horton said: “A positive outcome of the recent media inquest into the use of Reinforced Aerated Autoclaved Concrete (RAAC) in schools and other public buildings has been a spotlight on the need for proper maintenance of the country’s building stock.
“Hopefully facilities managers will find it easier to defend detailed maintenance budgets. Ultimately, they are working to keep buildings operational and their occupants safe.”
Planned, proactive maintenance is a keystone of every FM strategy. However, with current cost constraints, there are many demands on Facilities Managers’ maintenance budgets. When it comes to drainage and plumbing, however, the expense of repairing blockages or dealing with flooding could vastly exceed the cost of preventative maintenance.
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