The ServiceChannel Facilities Spend Index™ monitors commercial trade service costs and spending patterns based on $45 billion dollars in services delivered to 540,000 locations on the ServiceChannel Platform.
See the Latest Spend and Cost Trends
The ServiceChannel Facilities Spend Index™ is based on $45 billion dollars in services delivered to 540,000 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.
Top Trends
1. Spend Is Hitting New Highs
Increase in facilities spend YOY
Nationwide facilities spend across all trades in Q2 2023 hit an all-time high for the quarter after climbing 17% year-over-year (YOY). After two quarters of the year, spend in 2023 is outpacing 2022 by 15%.
2. Inflation Is Driving up Service Costs
Increase in service costs YoY
Service costs nationwide have continued their upward climb for nearly two years, growing by 13% YOY in Q2 2023. Breaking down the invoice cost, the labor portion rose by 8% with materials up 5%. The increase in labor cost was driven more by the number of hours, up 11%, than the hourly rate, up 5%.
3. Plumbing Spend Is Growing Fastest
Increase in plumbing spend YOY
Spend on the plumbing trade nationwide was 17% higher YOY in Q2 2023, accelerating the trend since 2019 of 9% annual growth.
“Data is the foundation for peak facilities performance. We use hundreds of metrics to optimize our clients’ locations and assets in real-time. 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.”
– Noam Reininger, President, ServiceChannel
Insights from the Facilities Spend Index™
Locations spent 15% more in the first half of 2023 than in 2022.
All Trades
Across all trades on the ServiceChannel Platform, facilities spend is growing to new highs, with spend in the first half of 2023 coming in 34% higher than in 2019.
Service costs also hit a new peak in Q2 2023, as material and labor shortages drove price inflation across trades.
Since 2019, invoice costs have increased by over 5% annually. The drivers are balanced with labor time up 6%, labor rates up 4%, and material costs up 6% annually.
The broad increase in labor time per work order may be partly explained by the turnover of experienced technicians and new workers taking longer to finish jobs.
Spend in 2023 year-to-date was 34% higher than 2019.
Total facilities spend increased by 17% YOY in Q2 2023.
Labor rates have increased 4% annually since 2019.
Service costs in Los Angeles rose 22% from Q2 2019 to Q2 2023.
HVAC service costs have risen by 55% in New York since 2019.
HVAC Trade
Spend on the HVAC trade varies seasonally, peaking in the summer months when air conditioning equipment is stressed during hot weather.
HVAC invoice costs have risen by 6% annually, as labor rates increased by 3% and material costs climbed nearly 8% per year since 2019.
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 18% YOY nationwide in Q2 2023.
HVAC spend grew by 5% YOY across the country.
In Dallas, HVAC spend rose by 9% YOY.
In New York, HVAC service costs were 22% higher YOY.
Janitorial spend in Atlanta was 72% higher in Q2 2023 than 2019.
Janitorial Trade
The budget allocated to janitorial work shrank slightly, down 5% since 2022.
Despite the recent decline, Janitorial spend nationwide was still 30% higher than 2019.
The typical janitorial invoice was 20% smaller than a year ago, but has held steady for several quarters.
Janitorial spend nationwide fell 5% YOY in Q2 2023
The cost for janitorial services fell by 20% YOY across the U.S. in Q2 2023.
Janitorial spend nationwide was 30% higher than 2019.
Janitorial service costs have returned to normal, with the typical invoice cost 1% lower than 2019.
Plumbing costs in Atlanta are 39% higher than 2019.
Plumbing Trade
Invoice costs for plumbing nationwide grew by 9% YOY in Q2 2023.
Plumbing costs nationwide have risen by 8% annually since 2019, driven by increases in labor rates 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 across the country increased by 17% YOY in Q2 2023.
Since 2019, plumbing spend nationwide has increased by 46%.
Nationwide plumbing service costs were 9% higher YOY.
Plumbing service costs across all states have climbed by 38% since 2019.
Dallas has seen a 12% annual increase in electrical trade spend since 2019.
Electrical Trade
Electrical service costs in Q2 2023 were up 5% nationwide in the last year.
This invoice cost growth translated into a budget increase of 6% 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 6% YOY in Q2 2023.
Electrical service costs nationwide rose by 5% YOY in Q2 2023.
Nationwide electrical spend has grown by 12% annually since 2019.
Electrical service costs in Atlanta have grown by 10% 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 $45 billion dollars in services delivered to 540,000 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.
