BCIS reveals updated five-year maintenance, cleaning and energy forecast

Maintenance costs, as measured by the BCIS All-in Maintenance Cost Indices, are set to rise 15% over the five years to 4Q2030, according to the latest forecast data from the Building Cost Information Service (BCIS).

Cleaning costs are expected to rise by 23% over the same period, largely driven by increasing labour costs, while energy costs are forecast to decline overall by around 3% between 2025 and 2030.

Dr David Crosthwaite, chief economist at BCIS, said: “The UK facility management sector is operating in a challenging environment, with slow economic growth, persistent inflationary pressures and continued volatility in global energy markets.

“While repair and maintenance (R&M) output is expected to grow over the forecast period, pressure on labour costs, combined with uncertainty around energy prices, means organisations will need to keep a close focus on cost control.”

Despite the challenging backdrop, R&M output is expected to grow modestly over the forecast period.

However, escalating geopolitical tensions associated with the conflict in Iran, alongside rising energy costs, are likely to weigh on economic confidence and investment, potentially constraining the pace of growth.

It is too early to fully assess the economic implications. However, a prolonged period of elevated energy prices could sustain broader inflationary pressures and slow the pace of monetary easing.

R&M output is forecast to increase by 9% between 2025 and 2030, having increased by an expected 1.7% in 2025.

Dr Crosthwaite said: “Political instability in the Middle East has contributed to disruptions in global oil and gas supply chains, leading to sharp increases in wholesale energy prices and renewed inflationary risks in the UK economy.

“In this uncertain environment, organisations that prioritise energy efficiency and long-term strategic planning are likely to be better positioned to maintain operational continuity and financial stability.”

For more information about BCIS, please visit: www.bcis.co.uk

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Editors notes

About BCIS:

The Building Cost Information Service (BCIS) is the leading independent provider of construction data to the built environment and insurance sectors. For 65 years, BCIS has been collecting, collating, analysing, modelling and interpreting cost information to support built environment professionals, helping them provide cost advice, to have confidence in commercial decision-making and to mitigate risk. BCIS was recognised at the Engineering Matters Awards 2024 with The Net Zero Champion Gold Award for its leading role in the development of the Built Environment Carbon Database. www.bcis.co.uk

Notes:

BCIS produces five-year construction industry forecasts, covering projected costs and output, and examining the latest construction market trends.

The quarterly BCIS maintenance, cleaning and energy briefing is a building maintenance market report. It reflects our view of construction repair and maintenance output, and private and public sector building maintenance, cleaning and energy costs, against the backdrop of the wider economic background.