See the Latest Spend and Cost Trends
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
4%facilities spend YOY
Nationwide facilities spend across all trades in Q2 2022 was an all-time high for the second quarter after climbing 4% in the last year. Spend was up 39% since the wide scale shutdowns in Q2 2020.
After two quarters, spend in 2022 is outpacing 2021 by 10% and pre-pandemic spend in 2019 by 16%.
2. Inflation Is Driving up Service Costs
10%service costs YoY
Service costs nationwide hit an all-time high in Q2 2022, rising 10% in the last year due to inflation in the prices for labor and materials along with expanding scope. Compared to 2021, the average cost of materials per invoice rose by 12%, and labor rates were up 3%. The number of labor hours per invoice jumped by 15%, leading to an overall increase in labor cost of 18% across all trades.
Since 2019, the typical invoice cost has risen by 3% annually. Due to supply chain shortages, materials costs are up 6% annually in the last three years. Labor rates have climbed 4% annually, while labor hours are up 2%.
3. Electrical Work Is Growing Fastest
62%spend YOY
Spend on the electrical trade nationwide was 62% higher in the first half of 2022 than 2021. It was 48% higher in Q2 2022 than in 2019, hitting a new record in the quarter.
“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.”
– Bashir Abdallah, Chief Product Officer, ServiceChannel
Insights from the Facilities Spend Index™
Locations spent 10% more in the first half of 2022 than in 2021.
All Trades
Facilities spend is growing to new highs
- Since the mass shutdowns of Q2 2020, facilities spend across trades has rebounded to surpass the pre-pandemic rate from 2019 by 16%.
Service costs are at their peak
- Service costs hit a new high point in the first half of 2022, as material and labor shortages drove price inflation across trades.
- Since 2019, invoice costs have increased by 9% overall. The rising costs are caused by labor rates climbing 4% annually and material costs rising 6% annually.
- Chicago stands out with a cost increase of 15% for invoices 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 7% 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.
HVAC costs have risen the most in Atlanta, Dallas, and Los Angeles in recent years.
Janitorial spend in Atlanta was 87% higher in Q2 2022 than three years ago.
Janitorial Trade
- The budget allocated to janitorial work remains near record highs, even as pandemic-era cleaning measures keep evolving.
- Janitorial spend in Q2 2022 was over one third higher than in 2019.
Plumbing Trade
- Invoice costs for plumbing nationwide grew by 31% YOY in Q2 2022.
- 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 costs in Atlanta are 30% higher than 2019.
New York has seen a 303% increase in electrical trade spend since 2020.
Electrical Trade
- The electrical trade hit a new high for invoice costs in Q2 2022, up 10% in the last year.
- Since activity dropped during the shutdowns of 2020, spend has rebounded with 151% growth.
- 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.
What is the Facilities Spend Index?
The Facilities Spend Index™ measures spend on facility operations across maintenance, repairs, and capital investments, $33 billion in services delivered to 500,000 locations on the ServiceChannel platform since 2018. In Q2 2022, our spend data grew by $3 billion and 30,000 locations.
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.
Learn more about the methodology for the Facilities Spend Index →
Find out how your costs compare with a custom assessment
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