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 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
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
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.
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 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.
- 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.
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.
- 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 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.
Plumbing costs in Atlanta are 16% higher than 2019.
Chicago has seen a 42% increase in electrical trade spend in two years.
- 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.
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 →
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