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October 28, 2025
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Industry

Facilities Management in 2026: Building Resilience in an Era of Rising Costs, Regulatory Change and Workforce Challenges

October 28, 2025
|
Industry
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The facilities management sector has always been defined by its ability to adapt. Whether responding to changing workplace patterns, evolving legislation, economic pressures or emerging technologies, FM professionals are continually required to balance operational excellence with strategic decision-making.

As we move further into 2026, that ability to adapt has never been more important.

Although many indicators point towards continued growth across the UK FM market, organisations are simultaneously navigating rising labour costs, persistent skills shortages, increased regulatory scrutiny, heightened security risks and ambitious sustainability targets. The organisations that thrive will be those that view resilience not as a reaction to disruption, but as a core business capability.

Below, we explore some of the key issues shaping facilities management and the practical steps organisations can take to remain resilient.

Rising Costs Continue to Challenge Budgets

While inflation has eased from its peak, cost pressures remain firmly embedded across the economy.

CPIH inflation continues to place upward pressure on wages, supplier contracts, utilities, maintenance costs and procurement budgets. At the same time, employee expectations around pay continue to rise, particularly in operational roles where labour shortages remain acute.

For FM leaders, budgeting has become considerably more complex.

Forecasting now requires greater flexibility, with many organisations reviewing financial assumptions more frequently than in previous years.

Rather than relying on static annual budgets, forward-thinking organisations are introducing:

  • Regular contract reviews
  • Dynamic cost forecasting
  • Flexible procurement strategies
  • Robust contingency planning

Financial resilience has become just as important as operational resilience.

Labour Costs Continue to Increase

One of the biggest financial changes facing employers has been the increase in statutory pay rates.

The National Living Wage rose to £12.21 per hour in April 2025, while many employers continue to benchmark against the Real Living Wage, currently standing at £13.45 across the UK and £14.80 in London.

For labour-intensive FM services such as:

  • Cleaning
  • Security
  • Front of House
  • Catering
  • Grounds Maintenance

these increases have significant implications for contract pricing.

Employers are increasingly reviewing indexation clauses within service agreements to ensure contracts remain commercially sustainable throughout their lifecycle.

Workplace Occupancy Continues to Evolve

The workplace continues to settle into hybrid patterns rather than returning to traditional five-day occupancy.

Many offices now experience predictable peaks between Tuesday and Thursday, while Mondays and Fridays often operate at significantly lower occupancy levels.

This presents both challenges and opportunities for FM teams.

Rather than delivering identical services every day, organisations are increasingly moving towards demand-led service delivery.

Examples include:

  • Dynamic cleaning schedules
  • Occupancy-based catering
  • Flexible Front of House staffing
  • Smart energy management
  • Responsive maintenance planning

Technology—including access control systems, occupancy sensors and IoT devices—is helping FM teams allocate resources more effectively while maintaining service quality.

Building Safety Remains a Strategic Priority

Building safety continues to reshape facilities management responsibilities.

The Building Safety Act has fundamentally changed how higher-risk buildings are managed, introducing significantly greater accountability for owners, landlords and accountable persons.

Facilities professionals are increasingly responsible for supporting:

  • Safety Case Reports
  • Golden Thread information
  • Resident engagement
  • Competence management
  • Mandatory occurrence reporting
  • Building compliance documentation

Building safety is no longer viewed simply as a compliance exercise—it has become a core element of organisational governance.

Organisations that invest early in robust compliance frameworks are likely to reduce future operational and legal risk.

RAAC Remediation Continues Across Public Estates

The discovery of Reinforced Autoclaved Aerated Concrete (RAAC) across parts of the UK's public estate continues to generate significant programmes of remedial work.

Educational establishments and healthcare organisations remain particularly affected, with remediation programmes expected to continue for several years.

Facilities teams are playing a central role in:

  • Estate surveys
  • Contractor management
  • Temporary relocations
  • Capital programme delivery
  • Risk mitigation
  • Stakeholder communication

These projects require careful planning to minimise operational disruption while maintaining safety.

Security Risks Continue to Rise

Facilities Management has always played a vital role in protecting people and property.

However, recent increases in violence, theft and anti-social behaviour—particularly across retail, transport and other public-facing environments—have heightened the importance of security planning.

Recent high-profile incidents have also reinforced the need for organisations to review emergency preparedness, business continuity and crisis management arrangements.

For many FM teams this means reviewing:

  • Violence and aggression risk assessments
  • Lone working procedures
  • CCTV provision
  • Access control systems
  • Incident reporting processes
  • Contractor security procedures
  • Staff training

Protecting people remains the highest priority.

Sustainability Remains High on the Agenda

Despite economic uncertainty, sustainability continues to drive investment across both the public and private sectors.

Government funding programmes continue supporting:

  • Heat decarbonisation
  • Building controls
  • Energy efficiency
  • Electrification projects
  • Carbon reduction initiatives

Facilities Management sits at the centre of delivering these ambitions.

Today's FM professionals are increasingly expected to combine operational expertise with knowledge of:

  • Carbon reporting
  • Energy management
  • Building performance
  • ESG objectives
  • Net-zero strategies
  • Lifecycle asset planning

The profession's strategic influence continues to grow.

What Organisational Resilience Looks Like in Practice

While every organisation faces different challenges, several common themes are emerging across resilient FM operations.

Invest in People Before Problems

The greatest asset within any FM operation remains its people.

Rather than expecting employees simply to become more resilient, organisations should strengthen the systems that support them.

This includes:

  • Conflict management training
  • Lone working procedures
  • Violence de-escalation training
  • Mental health awareness
  • Clear escalation processes
  • Regular competency reviews

Supporting people properly reduces both operational risk and employee turnover.

Build Flexibility Into Contracts

Long-term contracts must now accommodate changing economic conditions.

Increasingly, organisations are reviewing:

  • Labour cost indexation
  • Inflation clauses
  • Wage review mechanisms
  • Supplier flexibility
  • Performance-based KPIs

Contracts that can adapt to changing market conditions provide greater long-term stability for both clients and service providers.

Deliver Services Around Occupancy

Static service models are becoming increasingly inefficient.

Successful organisations are redesigning services around how buildings are actually used.

This may include:

  • Peak-day resource planning
  • Demand-led cleaning
  • Flexible engineering schedules
  • Outcome-based service agreements
  • Data-driven workforce deployment

Technology provides the evidence needed to deliver smarter, rather than simply more, services.

Strengthen Building Safety Governance

Building safety should remain under continual review rather than periodic audit.

Facilities leaders should ensure there is clear ownership of:

  • Safety Case Reports
  • Golden Thread documentation
  • Compliance records
  • Resident communication
  • Contractor competence
  • Risk management processes

Robust governance today reduces future operational and legal exposure.

Develop Talent Rather Than Simply Recruiting It

Recruitment remains challenging across engineering and technical FM disciplines.

Rather than relying solely on external recruitment, many organisations are increasing investment in:

  • Apprenticeships
  • Graduate schemes
  • Internal progression
  • Cross-training
  • Multi-skilling
  • Continuous professional development

Growing talent internally often provides greater long-term resilience than competing for an increasingly limited external talent pool.

Make Wellbeing Operational, Not Symbolic

Supporting employee wellbeing extends far beyond offering Employee Assistance Programmes or wellbeing campaigns.

Work design itself has a significant impact on retention and performance.

Examples include:

  • Stable rotas
  • Realistic staffing levels
  • Fair travel expectations
  • Adequate rest periods
  • Effective workload planning
  • Supportive management

Wellbeing should be embedded within operational planning—not treated as a separate initiative.

A Practical Checklist for FM Leaders

As organisations continue planning for the year ahead, FM leaders should consider whether they have:

  • Reviewed budgets to reflect current wage and inflation pressures.
  • Aligned service delivery with actual workplace occupancy patterns.
  • Confirmed Building Safety Act responsibilities and compliance arrangements.
  • Assessed exposure to RAAC remediation where relevant.
  • Updated violence, aggression and lone-working risk assessments.
  • Identified opportunities to support decarbonisation and energy efficiency projects.
  • Developed workforce plans that prioritise skills development alongside recruitment.
  • Embedded wellbeing into workforce planning and operational delivery.

Looking Ahead

Facilities Management continues to evolve into one of the most strategically important functions within modern organisations.

The profession is no longer solely responsible for maintaining buildings—it now plays a central role in organisational resilience, employee experience, sustainability, compliance, workplace strategy and business continuity.

While rising costs, workforce shortages and increasing regulation undoubtedly present challenges, they also create opportunities for organisations willing to innovate, invest in their people and embrace smarter ways of working.

The most resilient FM teams won't necessarily be those with the biggest budgets or the largest workforces.

They'll be those with the agility to adapt, the foresight to plan ahead and the leadership to turn today's challenges into tomorrow's competitive advantage.

  We've seen this play out in practice — our client case studies show how similar briefs were resolved.