How does your spend compare?

The ServiceChannel Facilities Spend Index™ monitors commercial trade service costs and spending patterns based on $24 billion dollars in services delivered to 420,000 locations on the ServiceChannel platform.

See the Latest Spend and Cost Trends

The ServiceChannel Facilities Spend Index™ is based on over $24 billion dollars in services delivered to 420,000 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

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Increase in
facilities spend YOY

Nationwide facilities spend across all trades hit a new high in Q3 2021 after climbing 15% in the last year. Spend was up 38% since the wide scale shutdowns in Q2 2020.

Compared to 2019, total spend is up 10% in Q3 2021. Three quarters through the year, the overall spend level is outpacing 2019 by 7%.

2. Service Costs Have Stabilized

arrow1%
Decrease in
service costs YOY

Overall service costs nationwide were 1% lower in Q3 2021 than a year earlier. Invoice costs peaked in Q4 2020, and have since fallen by 10%.

Since 2018, the typical invoice cost has fallen by 2% annually, despite increasing labor rates, up 7% annually, and growing material costs, up 11% annually. Invoice costs have been tempered by falling labor time, while labor rates have held steady since Q2 2020.

3. Cleaning Spend Remains Elevated, but Is on the Decline

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Increase in janitorial
spend over 2019

Janitorial spend nationwide remains 6% higher in Q3 2021 than two years before, though it’s dropped 17% from the peak.

Spend on the janitorial trade peaked up 24% year-over-year (YOY) in Q4 2020, when locations had reopened and cases were spiking. The expanded scope of cleanings led to a 29% increase in labor spend.

“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.”

– Alicia Barco, Chief Data Officer, ServiceChannel

Insights from the Facilities Spend Index

 

Locations have spent 7% more in the first three quarters of 2021 than in 2020.

All Trades

Spend and costs fell rapidly during pandemic shutdowns

  • The shutdown of non-essential businesses began in mid-March 2020, with facilities activity hitting its low point during Q2 2020.
  • Among index regions, New York City experienced the greatest drop in spend, cutting back 40%, while Atlanta saw the smallest change in spend, dropping just 13%.
‑16%
Facilities spend nationwide decreased 16% YOY during the shutdowns in Q2 2020.
‑9%
Nationwide service costs fell by 9% YOY in Q2 2020, while New York City saw a 40% decline.
 

Overall spend recovered during reopenings and is growing again

  • In the year since the mass shutdowns of Q2 2020, facilities spend across trades has rebounded to surpass the pre-pandemic rate in 2019.
+15%
Total facilities spend increased by 15% YOY in Q3 2021.
+7%
Three quarters through the year, spend in 2021 is 7% higher than 2019 and 2020 levels.
 

Overall service costs jumped during reopening, but are down from the peak

  • Service costs peaked nationwide in Q4 2020 as locations focused on the critical work required to keep operating as the pandemic endured.
  • By Q3 2021, cost per invoice had fallen 10% from the peak, though higher service volume led to increased spend.
  • While costs nationwide are in line with the pre-pandemic trend, Chicago stands out with a cost increase of 8% since 2019.
  • Since 2018, labor rates have increased by 7% annually, and material costs have risen by 11% annually.
+7%
Service costs peaked nationwide in Q4 2020, up 7% YOY.
+8%
Service costs in Chicago rose 15% from Q1 2019 to Q1 2021.
 

HVAC Trade

  • Spend on the HVAC trade varies seasonally, peaking in the summer months when air conditioning equipment is stressed during hot weather.
  • While the shutdowns of Q2 2020 reduced HVAC spend by 25% YOY, it bounced back quickly in Q2 2021 with a 48% annual increase.
  • HVAC invoice costs have risen by 5% annually, as labor rates increased by 3% and material costs climbed over 4% per year since 2018.
  • 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.
+5%
Invoice costs for HVAC service have increased by an average of 5% annually since 2018.
+5%
HVAC spend grew by 5% YOY nationwide in Q3 2021.
 
+13%
Chicago’s HVAC spend was 13% higher in Q3 2021 than two years ago.
+13%
Invoice costs for HVAC service have increased by an average of 5% annually since 2018.
 

HVAC costs have risen the most in Atlanta, Dallas, and Los Angeles in recent years.

 
 

Janitorial spend nationwide was 6% higher in Q3 2021 than two years ago.

Janitorial Trade

  • Given the sudden importance of deep cleanings for customer and employee safety, U.S. janitorial trade spend jumped as locations reopened in 2020.
  • The amount spent on materials like disinfectants more than doubled.
+24%
Janitorial spend climbed through Q4 2020, peaking 24% higher YOY.
+85%
The cost for janitorial services jumped as the scope of cleanings expanded. Nationwide, costs rose by 85% YOY in Q2 2020.
 
+6%
Janitorial spend nationwide remains 6% higher in Q3 2021 than two years earlier.
+25%
Janitorial services have grown in scope, with the typical invoice cost up 25% over two year ago.
 

Plumbing Trade

  • Nationwide plumbing spend in Q3 2021 grew by 10% over 2019.
  • Plumbing costs nationwide have held steady since 2018. The increases in labor rates of 5% annually and material costs of 6% annually have been balanced by reduced labor time.
  • 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.
+28%
Plumbing spend in the USA increased by 28% YOY in Q3 2021.
+58%
Since the shutdown lows of Q2 2020, plumbing spend has increased by 58%.
 
+10%
Nationwide plumbing spend was 10% higher in Q3 2021 than two years ago.
+15%
Plumbing service costs in Dallas and Atlanta have climbed by over 15% in the last two years.
 

Plumbing costs in Atlanta are 16% higher than 2019.

 
 

Chicago has seen a 42% increase in electrical trade spend in two years.

Electrical Trade

  • The electrical trade saw the largest drop in spend during the shutdowns of Q2 2020.
  • Since then, spend has rebounded to grow 26% in Q3 2021 compared to 2019.
  • 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.
-41%
Electrical trade spend in the USA fell by 41% YOY during the shutdowns of Q2 2020.
+54%
Electrical spend nationwide grew by 54% YOY in Q3 2021.
 
+26%
Nationwide electrical spend was 26% higher in Q3 2021 than two years earlier.
+15%
Electrical service costs in Los Angeles have grown by 15% in the last two years.

What is the Facilities Spend Index?

The Facilities Spend Index™ measures spend on facility operations across maintenance, repairs, and capital investments, based on $24 billion in services delivered to 420,000 locations on the ServiceChannel platform since 2018. In Q3 2021, our spend data grew by $2 billion and 29,000 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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