FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
New data from SFG20, the industry standard for building maintenance, reveals the FM industry’s biggest challenges, from compliance and budget constraints to technology and AI adoption.
According to a recent survey, 72 per cent of FM professionals stated that improving compliance and safety remains their top priority. However, only 54 per cent are confident in their organisation’s ability to achieve compliance, a nine per cent decrease from last year.
As part of its State of Facilities Management 2026 Report, SFG20 surveyed nearly 200 professionals from various roles in the built environment sector to assess challenges and priorities regarding facility management. The survey reveals that while the industry faces significant pressure, professionals are focused on innovation and improvement, with clear priorities and strategies for 2026.
Paul Bullard, Product Director at SFG20, said: “The Building Safety Act fundamentally changes accountability in our sector. It’s no longer enough to have good intentions or to follow traditional practices. Organisations must now demonstrate competence, maintain golden thread documentation, and prove they are actively managing building safety risks. This is a paradigm shift that many are still coming to terms with.”
The FM industry’s biggest challenges
1. Budget constraints and cost reduction
Budget constraints are currently the biggest challenge in the industry, as reported by 69 per cent of respondents. Meanwhile, reducing operational costs is the second biggest priority for FM professionals, with 59 per cent under pressure to manage this. Rising energy costs, inflation, and supply chain disruptions all make it increasingly difficult to deliver quality and cost-efficient services within tight budgets, whilst remaining compliant.
As organisations strive to meet compliance demands and implement essential safety measures, 30 per cent report a budget decrease over the past year, with 11 per cent citing a significant reduction. Overall, 66 per cent of facilities management professionals have the same or less budget than the previous year.
2. Technology adoption remains a challenge
Digital transformation has become a core focus within the FM industry, as organisations seek to leverage technology to improve efficiency, reduce operational costs, and enhance compliance.
Over half of respondents (51 per cent) identified AI and automation as the top trend shaping the sector over the next five years, yet organisational readiness remains low, with only 24 per cent rating their organisation as AI-ready. This gap is reflected in investment intentions, as just one in four (26 per cent) plan to increase spending on AI and data analytics in the next year.
The report has also revealed that technology adoption challenges are on the rise. High costs, while still significant at 63 per cent, are being joined by more complex challenges. Integration with existing systems as a barrier has surged from 20 per cent to 52 per cent, alongside resistance to change (41 per cent), a lack of internal expertise (39 per cent), and uncertainty around clear return on investment (34 per cent).
3. Staffing shortages and skills gaps
FM teams are facing growing capacity pressures, with over half (51 per cent) of organisations reporting understaffing in their teams, reinforcing that resourcing constraints are now a defining challenge for the sector. With fewer people available, teams can be overstretched, increasing the risk of reactive “fix-on-fail” working, reduced efficiency, and greater exposure to operational disruption.
Alongside headcount pressures, organisations are also reporting significant skills gaps, with respondents identifying compliance and safety expertise (42 per cent), digital and IT skills (42 per cent), and sustainability and energy management skills (32 per cent) as the main areas lacking in FM teams.
Kirsty Cogan, Managing Director at SFG20, commented: “As the facilities management industry evolves, achieving compliance, leveraging new technologies, and controlling costs will be the key priorities in 2026. The survey findings highlight the significant pressures faced by professionals in the sector but also show how they are driving change and innovation to address these challenges.
“The past year has shown that while there is an undeniable commitment to raising standards across the industry, the road to compliance, cost efficiency, and sustainability remains a tough one to navigate. Conversations with FM professionals across different sectors highlight the same recurring theme: progress is being made, but not at the speed or scale needed to meet the growing challenges ahead.”
The full report alongside SFG20’s complete list of recommendations for each covered challenge can be found here: https://www.sfg20.co.uk/e-guide/state-of-fm-2026.
FMJ and Watco Webinar: Meeting compliance in a new culture of accountability
From January 2026, the Building Safety Regulator (BSR) formally separated from the Health and Safety Executive (HSE). Created under the Building Safety Act 2022 in response to the Grenfell Tower tragedy, the BSR is designed to raise safety standards across the built environment and introduce a stronger culture of accountability, transparency, and proactive risk management.
This shift places facilities managers in a more strategic safety assurance role – far beyond routine maintenance.
FMJ and Watco are hosting a webinar on 22 April at 11:00am to explore what this new regulatory landscape means for FMs. To register for the webinar click here.
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Simply register above and after the webinar has been broadcast, we will send you a link to watch the recording.
