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 Hitting New Highs
facilities spend YOY
Nationwide facilities spend across all trades in Q4 2021 was at a high point after climbing 15% in the last year. Spend was up 38% since the wide scale shutdowns in Q2 2020.
The overall spend in 2021 outpaced the first pandemic year of 2020 by 15%, and spend also exceeded pre-pandemic 2019 by 7%.
2. Service Costs Are Rising
in service costs since 2019
Overall service costs nationwide were 4% higher in Q4 2021 than two years earlier in Q4 2019. Invoice costs peaked in Q4 2020, and have since fallen by 3%.
Since 2018, the typical invoice cost has risen by 1% annually, driven by rising labor rates and material costs. Due to supply chain shortages, materials costs are up 10% annually. Labor rates have climbed 6% annually, though they’ve held steady since Q2 2020, while labor time has fallen.
3. Cleaning Spend Remains Elevated
spend over 2019
Janitorial spend nationwide remains 20% higher in Q4 2021 than two years before, though it’s dropped 3% 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 spent 7% more in 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%.
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 in 2019 by 7%.
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 Q4 2021, cost per invoice was still 4% higher than two years earlier, but had fallen 3% from the peak.
- Chicago stands out with a cost increase of 9% since 2019.
- Since 2018, labor rates have increased by 6% annually, and material costs have risen by 10% annually.
- 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 3% annually, as labor rates increased by 2% and material costs climbed over 6% 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.
HVAC costs have risen the most in Atlanta, Dallas, and Los Angeles in recent years.
Janitorial spend nationwide was 20% higher in Q4 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.
- Invoice costs for plumbing nationwide grew by 7% YOY in Q4 2021.
- Plumbing costs nationwide have risen by 3% since 2018, driven by increases in labor rates of 3% and material costs of 5% 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 18% higher than 2019.
Dallas has seen a 44% increase in electrical trade spend in two years.
- The electrical trade hit new highs in both spend and invoice cost in Q4 2021.
- The electrical trade saw the largest drop in spend during the shutdowns of Q2 2020, down 41% YOY.
- Since then, spend has rebounded to grow 51% in Q4 2021 compared to 2019 and 67% compared to 2020.
- 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 $27 billion in services delivered to 450,000 locations on the ServiceChannel platform since 2018. In Q4 2021, 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 →
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