The full BCIS Facilities Management Quarterly briefing: Maintenance, cleaning and energy is published in the Briefing section, as part of BCIS OpX
Published: 03/10/2024
BCIS produces five-year construction industry forecasts, covering projected costs and output, and examining the latest construction market trends.
The quarterly BCIS maintenance, cleaning and energy briefing is a building maintenance market report. It presents our view of construction repair and maintenance output, and private and public sector building maintenance, cleaning and energy costs, against the backdrop of the wider economic background.
The full briefing is available to subscribers of the BCIS OpX.
BCIS maintenance, cleaning and energy forecast: 2Q2024 – 2Q2029
Maintenance costs, as measured by the BCIS All-in Maintenance Cost Indices, are set to rise 16% by 2Q2029, according to the latest forecast data from the Building Cost Information Service.
Cleaning costs, mainly driven by labour costs, are expected to rise by 23% over the forecast period, while BCIS expects energy costs to fall by 22% over the same period.
Chief Data Officer at BCIS, Karl Horton said: ‘The economic outlook for 2024 remains challenging due to high interest rates and constrained funding on the demand side, and a lack of skilled workers and contractors on the supply side.
‘While demand for FM services is expected to stay strong, repair and maintenance output will remain stagnant initially, with growth in the latter part of the forecast period. Cost increases will be driven by wages trying to recoup the real falls in recent years and by increases in the National Living Wage.’
BCIS is expecting annual declines in all R&M sub-sectors apart from public housing and infrastructure in 2024. While R&M is expected to show growth overall in 2025, non-housing R&M is forecast to remain in decline. BCIS is projecting R&M output to rise around 8% in the five years to 2029.
Horton added: ‘R&M output may be significantly affected by the upcoming Autumn Budget. With a £22 billion black hole in the nation’s finances to plug, the Chancellor has some very difficult decisions to make. We know that funding for R&M projects, including urgent work on schools, hospitals and prisons, as well as other government and local authority buildings, is going to be under extreme pressure.
‘There is a large stream of work on backlog maintenance, decarbonisation and repairs to address RAAC, if funds are available.’
Source: BCIS
Note: Output is whole year on whole year, costs are changes from 2Q to 2Q of the previous year
The full details of the forecast are available in the BCIS OpX.
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Quarterly updates to forecasts are published for maintenance, cleaning and energy, building, and infrastructure, while an annual update is published for the economic significance of maintenance. Non-subscribers can access the previous year’s economic significance of maintenance report to find out more about its coverage.
