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.
1. Spend Is Growing After Recovery from Pandemic Lows
facilities spend YOY
Nationwide facilities spend across all trades climbed 33% in the year since the wide scale shutdowns in Q2 2020. Halfway through 2021, the overall spend level is outpacing 2019 by 5%.
As essential businesses with open locations, the Grocery, Convenience, and Big Box Retail sectors maintained higher spend throughout the pandemic. Their budgets are now about 10% higher than 2019. Meanwhile, the Restaurant sector cut back more during shutdowns, and its spend has rebounded to be level with 2019.
2. Costs Have Been Rising, with Recent Relief
service costs YOY
Overall service costs nationwide were 9% higher in Q2 2021 than a year earlier, driven by an 11% increase in material cost. Invoice costs peaked in Q4 2020, and have since fallen by 8% as labor time decreased.
Since 2018, rising invoice costs were caused by increasing labor rates, up over 7% annually, along with growing material costs, up over 12% annually.
3. Cleaning Spend Remains Elevated, but Is on the Decline
spend over 2019
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.
Since the peak, nationwide spend has dropped 17%, but it remains 15% higher in Q2 2021 than Q2 2019.
“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 15% more in the first half of 2021 than in 2020.
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%.
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.
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 Q2 2021, cost per invoice had fallen 8% from the peak, though higher service volume led to increased spend.
- While costs nationwide are in line with the pre-pandemic trend, Dallas and Chicago have seen cost increases of more than 10% since 2019.
- Since 2018, labor rates have increased by 7% annually, and material costs have risen by 12% annually on average.
- 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 the next quarter.
- HVAC invoice costs have risen by 5% annually, as labor rates increased by 2% per year since 2018, and material costs climbed over 12% per year.
- 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 and Dallas in recent years.
Janitorial spend nationwide was 15% higher in Q2 2021 than two years ago.
- 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.
- Nationwide plumbing spend in Q2 2021 recovered to be higher than in 2019.
- Plumbing costs nationwide have increased by 2% annually on average since 2018, with greater change in all five metro regions. Rising invoice costs have been caused by a 4% annual increase in labor rates and a 6% increase in material costs.
- 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 hit a new high in Q2 2021.
New York City has seen the greatest fluctuations in electrical trade spend.
- The electrical trade saw the largest drop in spend during the shutdowns of Q2 2020.
- Since then, spend has largely recovered, but it remains down slightly from 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.
What is the Facilities Spend Index?
The Facilities Spend Index™ measures spend on facility operations across maintenance, repairs, and capital investments, based on $22 billion dollars in services delivered to 391,000 locations on the ServiceChannel platform since 2018. Brands use ServiceChannel to track every service delivered to every location, so they can ensure peak operating 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 →
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