Here is the latest Hungarian Facilities Management Mood Index

FM newsroom – LEO, survey. LEO, the Hungarian National Association of Facility Management and Building Management Service Providers came out with this years last Facilities Management Manager Mood Index. The numbers show optimism.

The respondents of the Mood Index at the LEO workshop seem optimistic, predicting growth in headcount, revenue and assets, largely due to the seasonality of the industry. At the same time, the survey takes into account the potential ripple effect of the decline in construction orders on the FM sector – reports.

„Our research also draws the attention of decision-makers to changes such as the risks of the Middle East war regarding the supply of energy, materials and spare parts, combined with the effects of labor shortages and high inflation, the administrative burdens and business opportunities associated with the introduction of ESG rules and mandatory certification requirements ”- LEO general secretary Rita Istiván informed

The sentiment index is at 53.24

The value of the sentiment index prepared for Q4 of 2023 (53.24 points) predicts strong growth, mainly due to the seasonality characteristic of the sector. The last quarter is always strong. The primary reason for this is that large corporate clients “sweep the attic” at the end of the year, i.e. after careful spending during the year, the remaining amounts are used for renovations and equipment replacements at the end of the year.

It should be highlighted that sales revenue is expected to increase by nearly 10% in the last quarter. Behind the strong upswing are the investments to be completed and the spending by large companies typical of the end of the year. But if we also take into account the level of the year’s inflation, this growth does not seem so robust anymore. At the same time, the long-term effect of the strong decline of orders in the construction industry may also affect the FM sector.

Based on the feedback of the respondents, examining the processes affecting the FM market, it is worth paying attention to the following changes:

Energy – The impact of the Russian-Ukrainian conflict on energy prices has eased, but at the same time, experts emphasize the risks facing the coming winter. The war in the Middle East, which is newly entering the formula, may even generate new turbulent effects in the field of energy, material and spare parts supply.

Manpower – The FM industry is characterized by strong wage and cost pressure as a combined effect of labor shortages and high inflation.

ESG – Making the ESG rules and certification requirements mandatory can mean a serious administrative burden, but at the same time – primarily in connection with the fulfillment of environmental protection requirements – it can help market players with additional orders.

Market size – The growth of the operating market also slows or stops due to the decline in the construction industry – even with the new factories announced in the news, as their appearance as properties to be operated can only be expected in the coming years.


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