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 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
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
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.
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%.
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.
- 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.
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.
- 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.
- 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.
Plumbing costs in Atlanta are 30% higher than 2019.
New York has seen a 303% increase in electrical trade spend since 2020.
- 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.
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 →
See How Leading Brands are Boosting Performance
ServiceChannel: Smarter Facilities Decision Making
A short overview of the ServiceChannel, #1 Facilities Management Platform, and the problems we solve for the greatest brands in the world.
ServiceChannel Customer Stories
Top brands use one integrated Facilities Management Platform to automate work orders, manage service providers, deliver amazing customer experiences — and higher ROI. See their stories.
ServiceChannel Customers Use Data for Big Savings
Whether it is warranty repairs, repair versus replace decisions, or general operations, data is the key to lowering facilities costs and improving outcomes.