The main challenge for FM specialists next year will be to offset the negative effects of the energy price explosion. On the service provider side, the labour shortage and the rising prices of raw materials cause additional headaches. Despite all challenges, the Hungarian National Association of Facilities Management and Building Management Services (LEO FM) is positive and expects further market growth.
In addition to the rise in energy and raw material prices, supply problems – especially in the case of gas supply – also challenge the facility management sector. The increase in fuel prices is painful for everyone, let alone the services with high fuel demand. On top of all this, the labour shortage along with the inflation exceeding 20% result in strong wage pressure in the facility management (FM) industry.
Despite this, the fourth-quarter facility management sentiment index closes at a cautiously optimistic value, and LEO FM, the Hungarian FM professional association, sees the year 2023 filled with opportunities – as FMbusiness reports. According to experts, the future brings more sustainable operations, as well as energy-reducing measures and data-based investments.
Cautious optimism is in the air
Despite the above, the facility management sentiment index for the last quarter of this year predicts a slight increase. The index assesses the mood of the market and the expectations of the players. Based on the last quarter’s value (51.86 points), market participants are “cautiously optimistic”, since the measured result somewhat exceeds the neutral value of 50. However, market players expect an unprecedented increase in the stock of receivables (6.14% growth forecast) due to the occasional or total cancellation of orders.
“It is clear that almost every segment of operating costs has seen unprecedented growth, which encourages customers to economize. At the same time, this is also a serious business opportunity, as it prioritizes investments that increase energy efficiency“- József Schmidt, president of the National Association of Facilities Management and Building Operation Services (LEO FM) concluded.
Working at our own office desk from 9 to 5 is a thing of the past. After the pandemic, the hybrid model, remote work or working from home (WFR) is taking over, the management of which can be challenging for FMs. As its time consuming and inefficient if workers cannot find free desks or meeting rooms of the right size when in need, FM companies should get familiar with the habits of the employees based on collecting and analysing data, so they can better optimise the use of space.
The new working models have obvious consequences for the corporate real estate market as well, and downsizing is now an almost constant issue for facility owners. The biggest challenge will be to find the balance between possible savings and keeping enough space for work.
2023 will be the year of Proptech solutions and Sustainability
The facility management trend of the coming year seems to be the implementation of Proptech solutions with the increasingly widespread use of IoT-based systems. By collecting, using and analysing data, companies can work with exact numbers rather than estimates, which can be of great help in optimizing energy consumption and thereby reducing costs. By remote control of electronic equipment, for example, extreme temperature fluctuations and unnecessary use can be avoided. The analysed data can also provide effective assistance in the planning and timing of maintenance.
According to experts, sustainability will also be one of the defining trends in facilities management in 2023. Environmental protection issues are gaining more and more attention, so a considerable number of businesses are looking for ways to reduce carbon dioxide emissions. This means that sustainable practices and better environmental management, have taken a higher priority level in facility management.