The ServiceChannel Facilities Spend Index™ monitors commercial trade service costs and spending patterns based on $69 billion dollars in services delivered to 620,000 locations on the ServiceChannel Platform.
Top Trends for Q4 2024
1. Spend Is Hitting New Highs
Increase in facilities spend YOY
Nationwide facilities spend across all trades in Q4 2024 increased 15% year-over-year (YOY) from Q4 2023, up three points from the previous quarter’s growth. Total spend in 2024 climbed by 11% compared to 2023.
2. Inflation Is Still a Problem
Increase in service costs YoY
Service costs nationwide grew by 6% YOY in Q4 2024, up from 5% growth a year earlier. Breaking down the invoice amount, the cost for materials rose over 50% faster than the cost for labor.
3. HVAC Spend Drops from Peak
Decrease in HVAC spend YOY
Spend on the heating, ventilation, and air conditioning (HVAC) trade nationwide was 3% lower YOY in Q4 2024, while falling by 15% in New York.
See Spend and Cost Trends Through Q4 2024
The ServiceChannel Facilities Spend Index™ is based on $69 billion dollars in services delivered to 620,000 locations on the ServiceChannel Platform since 2018.
With the Facilities Spend Index you can…
› See where your budgets are growing faster than industry spend overall. › Compare your invoice cost trends to the Service Cost Index. › Choose between trades and regions to explore different markets.
“Data is the foundation for peak facilities performance. With actionable insights from dozens of metrics, we help to continually optimize our clients’ locations and assets. Being data-driven also accelerates progress. By benchmarking every brand and provider on our platform, we are driving continuous improvement and innovation across the industry.”
– Rigvi Chevala, Chief Product and Technology Officer, ServiceChannel
Insights from the Facilities Spend Index™
Locations spent 11% more in 2024 than in 2023.
All Trades
Across all trades on the ServiceChannel Platform, facilities spend set a new all-time high for the quarter, with budgets in Q4 2024 coming in 45% higher than 2019.
Despite falling from peaks in Q2 and Q3 2024, service costs still rose by 6% YOY in Q4, driven by increases in material amounts and labor rates.
Since 2019, invoice costs have increased by over 5% annually, driven by both material costs (up 11% annually) and labor costs (time up 3% and rates up 4% annually).
Spend in Q4 2024 was 45% higher than 2019.
Total facilities spend saw an 15% year-over-year increase in Q4 2024.
Labor rates have increased 4% annually since 2019.
Service costs in Los Angeles rose 7% in Q4 YOY.
HVAC spend has risen the most in Los Angeles over the last five years, up 55%.
HVAC Trade
Spend on HVAC repairs, maintenance, and capital varies seasonally, with budgets 35% lower in Q4 than Q3 due to the demands of summer heat.
HVAC invoice costs have risen by 11% annually since 2019, backed by labor rates up 4% and material costs up 9% per year.
The top performing 25% of HVAC providers cost 62% less than those in the bottom 25%, and they arrive onsite 4 days sooner, based on our marketplace data.
Invoice costs for HVAC service increased by 29% YOY nationwide in Q4 2024.
HVAC spend fell by 3% YOY nationwide in Q4 2024.
In Atlanta, HVAC spend increased by 20% YOY.
In Atlanta HVAC service costs were 29% higher YOY.
Janitorial spend in New York was 23% higher in Q4 2024 than 2023.
Janitorial Trade
The budget allocated to janitorial work grew by 11% in Q4 2024 vs. 2023.
Janitorial spend nationwide was 32% higher in 2024 than 2019.
The typical janitorial invoice was 1% greater than a year ago this quarter.
Janitorial spend nationwide rose 11% YOY in Q4 2024.
The cost for janitorial services rose by 1% YOY across the U.S. in Q4 2024.
Janitorial spend nationwide was 5% higher in 2024 over 2023.
Janitorial service costs have declined by 2% annually over the last five years.
Plumbing service costs in Atlanta were 23% higher in Q4 than last year.
Plumbing Trade
Budgets for plumbing work grew by 4% in Q4 2024 from 2023.
Invoice costs for plumbing nationwide grew by just 7% YOY in Q4 2023.
Despite slowing inflation, plumbing costs nationwide have risen by 8% annually since 2019, driven by increases in labor costs of 3% and material costs of 7% annually.
The top performing 25% of plumbing providers cost 38% less than those in the bottom 25%, and they fix issues on the first visit five times more often, based on our marketplace data.
Plumbing spend in the USA increased by 4% YOY in Q4 2024.
Since 2019, plumbing spend nationwide in Q4 has increased by 40%
Nationwide plumbing costs were 7% higher YOY in Q4 2024.
Plumbing service costs across all states have climbed by 41% since 2019.
Chicago has seen a 13% annual increase in electrical trade spend since 2019.
Electrical Trade
Electrical service costs in Q4 2024 were up 7% nationwide in the last year.
This invoice cost growth translated into a budget increase of 30% YOY.
The top performing 25% of electrical providers cost 37% less than those in the bottom 25%, and they arrive onsite over 4 days sooner, based on our marketplace data.
Electrical spend nationwide grew by 30% YOY in Q4 2024.
Electrical service costs nationwide rose by 7% YOY in Q4 2024.
Nationwide electrical spend has grown by 15% annually over the last five years.
Electrical service costs in New York have grown by 7% per year since 2019.
What is the Facilities Spend Index?
The Facilities Spend Index™ measures spend on facility operations across maintenance, repairs, and capital investments, based on $69 billion dollars in services delivered to 620,000 locations on the ServiceChannel Platform since 2018.
Brands use ServiceChannel to track every service delivered to every location, so they get peace of mind through peak facilities performance and a consistent customer experience.
The related Service Cost Index™ measures the invoice cost for services delivered. The total facilities spend is a product of invoice cost and invoice volume.
To compare your facilities spend, providers, and assets to your industry peers, check out our benchmark reports for quick-service restaurants (QSRs) and grocery stores. For a customized assessment of how your program compares to industry benchmarks, please contact us.
Top brands use one integrated Facilities Management Platform to automate work orders, manage service providers, deliver amazing customer experiences — and higher ROI. See their stories.
Whether it is warranty repairs, repair versus replace decisions, or general operations, data is the key to lowering facilities costs and improving outcomes.
