How facility management teams are adapting to cost pressures

Rising costs, supply chain disruption and workforce shortages are reshaping facilities management across Australia and challenging operations.

Last Updated:

July 27, 2026

By

INCLEAN Editor

Words: Kris Campbell

The facilities management (FM) sector in Australia is navigating a perfect storm. Rising costs across labour, materials and services – in addition to fuel, which impacts back-up generators and travel costs for facility managers – are converging with supply chain disruptions and a shrinking talent pool.

With building maintenance costs surging and critical components facing extended lead times, the assumption that services and materials will be available on demand no longer holds true.

For FM decision-makers, the mandate is clear: we must rethink how we deliver outcomes without compromising on building performance, client expectations and occupant experience.

Shifting from reactive to proactive maintenance 

When budgets tighten, there is often a temptation to defer maintenance. However, deferred maintenance rarely
survives a crisis.

Assets maintained to minimum standards are the first to fail when conditions deteriorate, leading to reactive repairs that are invariably more expensive and time-consuming.

Instead, the focus must shift to proactive and condition-based maintenance. By leveraging data and analytics, FM teams can identify vulnerabilities early and extend the life cycle of existing equipment. This approach not only safeguards uptime, but also optimises capital expenditure.

As facility managers, we must also ensure our landlords have well thought out asset and capital expenditure plans as this is essential to avoiding unnecessary reactive maintenance.

Leveraging technology as a force multiplier 

With the current global uncertainty, technology is the most effective lever to bridge the capacity gap. Centralised FM platforms and computerised maintenance management systems (CMMS) are no longer optional, they are essential.

Automating time-consuming administrative tasks, such as work order management, compliance reporting
and invoice processing, allows FM professionals to reclaim a considerable amount of hours annually. This enables our teams to focus on higher-value problem-solving rather than getting bogged down in paperwork.

Building supply chain resilience 

The fragility of global supply chains means FM teams can no longer rely on just-in time procurement. Delays in securing essential parts directly impact service delivery and tenant satisfaction.

To mitigate this risk, FM leaders must build deeper, more strategic relationships with their supply chain partners. This involves moving away from transactional interactions toward collaborative partnerships.

When external pressures such as increasing fuel, energy and material prices inevitably arise, open dialogue ensures these cost increases are managed proactively rather than arriving as a surprise. This level of clarity allows us to better forecast and mitigate the flow-on effects to the asset’s bottom line.

Empowering the workforce

Ultimately, technology and strategy are only as effective as the people executing them. As we navigate these cost pressures, investing in our workforce is paramount.

When I was doing projects or classwork in high school (many moons ago), my teachers would say that I’d always look for the easiest way out. Turns out, in the professional world, this is referred to as efficiency.

That mindset is exactly what we need in FM today. It is about working smarter, not harder. We need to equip our teams with the right tools and streamlined processes so they can find the most direct, effective route to a solution.

By stripping away unnecessary administrative burdens and providing clear, actionable guidance, we empower our people to deliver exceptional service without burning out.

The current economic environment demands resilience. By embracing proactive maintenance, leveraging a smart
technology ecosystem, fortifying our supply chains and championing efficiency in our people, FM teams can not only weather these cost pressures but emerge stronger, delivering sustained value and superior building performance.

Kris Campbell is the director, head of Facilities Management, Victoria at Knight Frank

This article first appeared in the May 2026 edition of FM magazine.

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