By Scott Cannon
The facilities management industry is evolving at a breakneck pace with technological, social, environmental, and economic trends fundamentally reshaping the sector in recent years.
Rapid tech advancements, such as the Internet of Things (IoT) and Artificial Intelligence (AI), in building management systems are transforming how facilities are operated and maintained. Increasing sustainability demands are pushing managers to adopt greener practices and materials to reduce environmental impact. Economic uncertainty has led to shortages of labor needed to most effectively run sites. A solid argument could be made that there has been more change in the facilities management industry over the last five years than in the several decades prior.
Fortunately, if navigated properly, this shifting landscape provides plenty of room for opportunity and growth. With the facilities management industry in the U.S. alone estimated to soar to $3.5 trillion by 2030 (up from $2.1 trillion in 2023), embracing change by adopting new technology, meeting environmental goals and finding creative staffing solutions is a recipe for profits and sustainable organizational value.
Here are four trends that will define the next five years in facilities management.
Sustainability And Circular Economy Practices Stick
One of the most critical trends shaping the future of facilities management is the growing emphasis on sustainability and the circular economy, which is an alternative to a traditional linear economy and is focused on the renewability and reuse of materials.
Across industries, leadership has reported a renewed focus on environmental efforts and climate issues. A recent study by Ernst & Young found more than 50% of CEOs said sustainability is a higher priority now than a year ago. This shift is not merely about compliance and/or moral responsibility but about the potential to create value and resilience.
Regardless of rationale, as these environmental concerns take center stage again, facilities managers will become increasingly focused on reducing waste and promoting the reuse and recycling of materials. Simple concepts—planned and executed more efficiently thanks to the use of improved technology—will be revisited, such as proximity matching materials and equipment in relation to the job site, which can further reduce environmental impacts by minimizing transportation distances and associated fuel consumption.
Sustainable practices, including the use of recycled and renewable materials, may significantly reduce the environmental impact of facilities, and facilities that adopt these practices are not only more sustainable but also better positioned to meet regulatory requirements and consumer expectations.
AI’s Digital Transformation & Smart Facilities Management
AI is changing the face of nearly every industry and facilities management is no exception. In the industry, AI is enhancing technologies like IoT, Building Information Modeling (BIM), and advanced data analytics, and its use-cases will only grow.
As it relates to BIM, specifically, AI will continue to allow for better predictive maintenance and optimized building designs. AI algorithms analyze vast data within BIM to prevent costly breakdowns and extend equipment lifespan, with research showing a 20-30% reduction in maintenance costs and a 15-20% increase in the lifespan of building systems. In IoT, AI enables sophisticated data analysis and automation. AI-powered IoT systems optimize energy use by adjusting lighting, heating, and cooling in real-time, resulting in up to a 30% reduction in energy consumption. AI also excels in predictive maintenance. By analyzing sensor data, AI has shown it can predict equipment failures and schedules proactive maintenance, resulting in a 50% reduction in unplanned outages, and a 20% reduction in maintenance costs.
AI is proving quickly to be one of the most important technologies of our time, and its impact over the next five years in facilities management will be fascinating.
Advanced Materials, Construction Techniques & Next-Gen Equipment
Innovations in construction materials and techniques that would seem to be out of science fiction are poised to transform facilities management over the next five years.
The development of cutting-edge innovation has seen great leaps forward recently. Notably, engineers at Drexel University have created “BioFiber,” a new material that helps “heal” cracks in concrete. When embedded in concrete, BioFiber enhances durability and self-repairs cracks by releasing bacteria to the damaged site, filling the crack and preventing it from growing. This innovation could significantly improve the lifespan of concrete structures, reducing the need for frequent repairs and lowering maintenance costs.
Meanwhile, wider adoption of modular construction and 3D printing is beginning to take hold, revolutionizing how facilities are built and maintained. These technologies promise greater durability, efficiency, and cost-effectiveness, addressing long-standing challenges in the industry. Lastly, next-generation equipment, including electric and hybrid options, such as electric scissor lifts and hybrid fork lifts, are designed to operate more efficiently and enhance on-site job safety. Equipment like these not only reduces operating costs and emissions but also offers quieter operation, which is beneficial for indoor facilities.
Addressing Facilities Management Talent Shortages With Technology & Contractors
A pressing challenge in facilities management is the growing talent shortage. An aging workforce and a lack of new entrants make it difficult to maintain high standards for management and maintenance. As a result, it’s been predicted that by 2025, the facility management industry might face a shortage of 53%, resulting in a great amount of open jobs. The industry must adapt. Studies have shown that more young people want or are already pursuing alternative careers instead of working full-time. Leveraging technology platforms that match talent more efficiently and utilizing contractors can be a powerful solution.
Digital platforms such as Field Nation that facilitate the on-demand matching of professionals with facilities and shifts offer a promising solution.
These platforms tap into local talent pools and provide more flexibility than traditional employment models, helping to manage high-demand periods effectively. Contractors can fill critical skill gaps, ensuring that facilities management meets high standards even as permanent staffing levels fluctuate.
The facilities management industry has experienced rapid upheaval over the last few years and more change is coming. Organizations that are able adapt and adjust are poised to reap the rewards.
Cannon is the CEO of equipment rental and software solution BigRentz.
