Building maintenance costs are expected to rise by 5.7 per cent*, in the year to the fourth quarter of 2023 and between 2.5 per cent and 3.1 per cent annually for the next four years, according to the Building Cost Information Service’s (BCIS) five-year Facilities Management forecast.
Originally reported in leading FM publication, FM Journal, the data shows that overall, costs are expected to rise 17.6% in total, in the forecast period to the fourth quarter of 2027.
The BCIS says that although energy prices are extremely volatile, they are expected to fall over the forecast period. “They may continue to rise in the short term as previous increases work their way through to consumers. But they are set to go down for the rest of the forecast period, as the markets stabilise.”
The FM market will be subject to competing pressures of restricted budgets and growing needs over the next few years.
BCIS Five Year FM Forecast – 2023
Energy prices** are currently very volatile, they have been rising rapidly in the past months, but are expected to fall back as the world markets stabilise.
They are expected to grow by 11% over the forecast period. This is mainly driven by significant increases in oil and gas prices through to the end of 2Q 2023.
However, as the current global markets steady, it is expected that energy prices will decline.
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*Note the BCIS forecast was based on information available on 5th September 2022.
**Please note that the forecast was undertaken before the latest UK government announcement regarding energy prices.
