An industry survey, the State of Facilities Management 2026 Report, by SFG20, has revealed insights into the feelings in the sector
The report has found that facilities management (FM) teams are split fairly evenly in their confidence in their organisation to achieve compliance, with 54% saying they are confident.
In last year’s edition this figure was 9% higher at 63%, indicating falling confidence in the span of a year.
Improving compliance is the top priority for most
The same data found that 72% of FM professionals said that improving their organisations compliance and safety is their first priority in 2026, with the main challenge being budget restrictions, as 69% of respondents cited, and 30% report that their budget has decreased from last year.
Another important issue in the report is artificial intelligence, as 51% of respondents identified AI and automation as the top trend for the sector over the next five years, but only 24% agreed that their organisation is AI-ready, and just 26% plan to increase spending on these technologies in the next year.
Technology adoption challenges are a key theme in the report overall, with costs of adopting new technology are cited by 63% as being a major barrier, integration with existing systems has jumped from last year’s 20% to 52%, and other barriers include resistance to change (41%), a lack of internal expertise (39%), and uncertain ROI (34%).
Staffing and the skills shortage is another large barrier
51% of respondents have reported understaffing in their teams, while skill gaps in expertise (42%), digital and IT skills (42%), and sustainability and energy management skills (32%), are large areas where finding skilled staff is difficult for FM teams.
Paul Bullard, chief product officer 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.”
Kirsty Cogan, managing director at SFG20, said: “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 report can be read in full here.
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