By Till Eichenauer, MD at askporter.
With a New Year, the facilities management (FM) sector finds itself at an inflexion point. Providers are readying themselves for ongoing challenges like continued labour shortages, rising client and tenant expectations, coupled with tighter budgets. These changes are forcing businesses to rethink their operations, while aligning with regulatory requirements. At the same time, technology is transforming the sector and delivering competitive advantages for FM providers.
The sector has struggled with labour shortages for some time, and incoming inflation and higher service expectations make it an even harder problem to manage. Clients demand and deserve top-tier service, but the price of high-quality labour will not go down. To maintain quality service, more providers are turning to technology. Integrating AI tools to automate routine inspections or optimise workforce scheduling is a key example, opening up resources and time, while maintaining quality. Those who do not unlock time-saving efficiencies risk falling behind, losing contracts, and failing to meet expectations.
In the face of challenging economic headwinds, FM contracts – new and existing – are coming under increased scrutiny. Businesses prioritise cost control, but FM costs can only be pushed down to a limited extent and companies are not willing to compromise on quality. They will look very closely to ensure that they get the service they are paying for. Data-driven approaches ensure that contracts are flexible and focus on performance while managing costs. By maximising the potential of contracts through technological adoption, service delivery and retention improve, from delivering results – even in tough conditions.
In 2025, we will see a change in how we manage reactive maintenance and first-time fixes. Traditional processes involve a human-led diagnosis-first approach, leading to multiple site visits – which is costly and frustrating for clients and tenants alike. This is beginning to change. FM and repair suppliers now have access to the tools which make first-time fixes a reality.
AI-driven tools are leading to more accurate remote diagnostics. The results: maintenance teams are more efficient, creating a new standard through scheduling efficiency, improved work delivery, and client satisfaction.
Our own tool determines diagnosis with 97% accuracy. Plus, as reactive maintenance becomes more efficient, FM providers can focus more on post-repair follow-ups that enhance customer satisfaction.
The property sector will increasingly measure customer satisfaction with completed repairs, preventing churn. Housing in particular faces rising scrutiny over service quality and tenant satisfaction. Regulatory requirements like Tenant Satisfaction Management (TSM) mean providers are under pressure to measure and report, and are asked questions on quality of repairs and maintenance. Resultingly, providers are investing in tools that track and measure satisfaction based on repair completion, integrating feedback into workflows. Automated systems flag unresolved issues and re-raise tasks for follow-ups, boosting tenant satisfaction through maintenance and repair follow-up improvements, while aligning with regulatory requirements.
Whilst we advocate for the use of AI and automation in the industry, there is a problem with scalability. Several organisations have invested in developing proprietary AI solutions, but not all can keep up with advancements. Instead, the trend is shifting to show that FMs will favour customisable, white-label solutions from specialised and sector-specific providers that are scalable, cost-effective, and built to evolve. With smarter AI solutions, FMs can address challenges while focusing on what matters to them.
As We Say Goodbye To 2024, Where Does This Leave Us?
It will come down to how well FM providers can adapt and stay resilient. That’s nothing new, but the challenges FM’s face differ from those that have come before. Those who succeed in 2025 will do so by accepting challenges and embracing technology. We must set a new precedent for the sector by taking smarter approaches to deliver improved contract and service delivery, better maintenance processes, and transformed customer experience. Data-driven measurement, AI-led diagnostics, and customer service technologies can help FM providers stay ahead of the game in 2025.
