Methodology for the Facilities Spend Index™
What does the Facilities Spend Index measure?
The Facilities Spend Index™ measures the spend on facility operations across maintenance, repairs, and capital investments each quarter. Trends are driven by changing costs and volume of work across trades.
Total Spend = Service Cost x Service Volume
What does the Service Cost Index measure?
The Service Cost Index™ measures the median invoice cost for services delivered. Service cost is composed of labor, materials, travel, and other costs, such as management fees.
Service Cost = Labor Rate x Labor Time + Material Cost + Travel Cost + Other Cost
What trades and regions do you measure?
We report the value of both indexes for a range of trades and regions, to show how trends vary by specialty and geography. At the broadest level, we monitor All Trades across the entire USA, which includes all the common trades tracked by brands. We also measure four key trades (Electrical, HVAC, Janitorial, and Plumbing) and five major metro areas (Atlanta, Chicago, Dallas, Los Angeles, and New York City).
If you’d like to see data for other trades or regions that matter to your business, please contact us.
What is an index?
An index is an indicator that measures the change over time in a benchmark metric. The ServiceChannel indexes were established with a baseline value of 100 in Q1 2018. For example: When an index reaches 110, it’s measuring a 10% increase above the baseline value.
What locations do you include in the index?
For accurate comparisons between index values over time, we include a constant set of locations in every quarter. We exclude any locations that opened or closed during the index time range, because they do not have consistent platform activity throughout the period.
How does my spend and costs compare to my industry peers?
For a customized assessment of how your spend and costs compare to industry best practices and where you can realize the most valuable improvements, please contact us.