How does your spend compare?

The ServiceChannel Facilities Spend Index™ monitors commercial trade service costs and spending patterns based on $33 billion dollars in services delivered to 500,000 locations on the ServiceChannel platform.

See the Latest Spend and Cost Trends

The ServiceChannel Facilities Spend Index™ is based on $33 billion dollars in services delivered to 500,000 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

arrow4%
Increase in
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

arrow10%
Increase in
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

arrow62%
Increase in electrical
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%.
+16%
Spend in H1 2022 was 16% higher than 2019 pre-pandemic.
+4%
Total facilities spend increased by 4% YOY in Q2 2022.
 

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.
+4%
Labor rates have increased 4% annually since 2019.
+15%
Service costs in Chicago rose 15% from Q2 2019 to Q2 2022.
 

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.
+7%
Invoice costs for HVAC service have increased by 7% annually since 2019.
+5%
HVAC spend grew by 5% YOY nationwide in Q2 2022.
 
+35%
In Dallas, HVAC spend was 35% higher in Q2 2022 than three years ago.
+35%
In Los Angeles, HVAC service costs were 35% higher in Q2 2022 than three years earlier.
 

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.
+18%
Janitorial spend nationwide climbed 18% YOY in Q2 2022, despite falling invoice costs.
-6%
The cost for janitorial services fell by 6% YOY across the U.S. in Q2 2022.
 
+36%
Janitorial spend nationwide was 36% higher in Q2 2022 than three years earlier.
+23%
Janitorial services have grown in scope, with the typical invoice cost up 23% over three years ago.
 

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.
+23%
Plumbing spend in the USA increased by 23% YOY in Q2 2022.
+75%
Since the shutdown lows of Q2 2020, plumbing spend has increased by 75%.
 
+31%
Nationwide plumbing costs were 31% higher in Q2 2022 than in 2021.
+30%
Plumbing service costs in Atlanta and Dallas have climbed by 30% in the last three years.
 

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.
+14%
Electrical spend nationwide grew by 14% YOY in Q2 2022.
+10%
Electrical service costs nationwide rose by 10% YOY in Q2 2022.
 
+151%
Nationwide electrical spend was 151% higher in Q2 2022 than two years earlier.
+67%
Electrical service costs in New York have grown by 67% 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, $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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