FM Efficiency in 2025: Why Operational Strategy Matters Now

It’s not an easy time to be in facilities management. 

Inflation has sunk its teeth into everything from cleaning products to fleet servicing. National Insurance increases have bumped up staffing costs across the board. And everyone wants more for less.  

So it’s no surprise that UK FM firms are scrambling to find new ways to do the same job — or more — with tighter margins. The question is no longer whether operational efficiency matters. It’s what you’re doing about it. 

  

Why Efficiency Is Having a Moment 

  

The numbers speak for themselves. According to the 2024 IWFM Market Outlook report, 58% of FM leaders identified cost management as their number one operational priority, overtaking sustainability and even compliance.[1] Meanwhile, tendering is more competitive than ever. Contracts are being won (or lost) on the ability to deliver leaner services without compromising service levels. 

  

And the headwinds are real. In early 2025, the UK government increased employer National Insurance contributions for mid-sized employers by 1.5%, directly affecting labour-intensive sectors like FM. Energy costs are volatile, parts and consumables are subject to ongoing supply chain delays, and wage pressure continues due to skills shortages in everything from cleaning to engineering. 

  

For FM companies operating on thin margins, this creates an urgent need to re-evaluate how services are delivered, how assets are maintained, and how value is communicated. 

  

The Playbook: What Efficiency Looks Like in FM Today 

  

Operational efficiency in FM is no longer just about cutting hours or renegotiating supplier rates. It requires strategic thinking across five key domains: 

  

1. Condition-Based and Predictive Maintenance

  

The old model of reactive maintenance is costly and disruptive. Even scheduled maintenance can result in servicing assets that don’t need it — wasting time and labour. 

  

Condition-based maintenance (CBM) and predictive models use real-time data from sensors, building systems, and service logs to trigger interventions only when necessary. This reduces downtime, lowers material waste, and improves asset life cycles. 

  

A study by McKinsey found predictive maintenance can reduce maintenance costs by up to 25% and unplanned outages by 70%.[2] 

  

The catch? You need reliable asset data and integrated systems to do it well. 

  

2. Data-Driven Decision Making

  

Data is everywhere in FM — but too often, it’s fragmented. Efficiency starts with knowing where you’re wasting resources. 

  

Platforms that integrate CAFM data, cleaning audits, energy usage, and engineer call-outs allow managers to see what’s working and what isn’t. The most efficient firms are combining this with Power BI-style dashboards to track performance by site, region, and contract. 

  

According to CBRE’s 2024 Global FM Insights report, data-led organisations are 23% more likely to meet budgetary targets across their FM portfolio.[3] 

  

3. Energy Efficiency and Asset Performance

  

With energy representing one of the largest controllable FM costs, smarter energy management has gone from nice-to-have to business critical. 

  

This includes: 

  

• Smart meters and BMS integration 

• LED retrofits 

• HVAC optimisation through sensors and analytics 

  

It also means identifying underperforming assets and either improving or retiring them. A surprising number of buildings still rely on ageing boilers, inefficient fans, and outdated lighting. 

  

4. Supply Chain and Procurement Resilience

  

Post-Brexit, the FM sector saw major disruption to supply chains — from parts delays to product availability. The most resilient companies now manage risk by: 

  

• Consolidating supplier networks 

• Maintaining buffer stock of mission-critical items 

• Working with UK-based distributors where possible 

  

Smarter procurement isn’t just about price. It’s about availability, delivery lead times, and reliability. Frameworks like Crown Commercial Service or Pagabo are being used more frequently to source both goods and services efficiently. 

  

5. Right-Sizing the Workforce

  

Staffing is still the biggest cost line in most FM contracts. But cutting heads isn’t the answer. Instead, FM companies are: 

 

• Reviewing shift patterns to align with actual usage 

• Using mobile operatives across smaller sites 

• Cross-training staff to cover multiple duties 

  

Some are also investing in workforce management tools to match rotas more tightly to demand — reducing idle time and over-servicing. 

  

Mitie reported a 12% improvement in productivity after rolling out AI-based workforce optimisation tools across their security division in 2023.[4] 

  

For FM Leaders, It’s About Survival 

  

Operational efficiency isn’t just a trend. It’s a survival strategy. With margins under pressure and costs rising, FM leaders are expected to deliver more value, with less waste, using teams that are already stretched thin. 

  

The firms that will thrive over the next five years are the ones who take a portfolio-wide view. Not just trimming budgets site-by-site, but redesigning service delivery from the ground up. 

  

That means asking hard questions: 

  

• Are our contracts over-delivering? 

• Do we have the data to prove we’re efficient? 

• Are our mobile teams being deployed optimally? 

• What’s the cost of downtime on our client sites? 

• Can we automate the boring stuff and upskill the rest? 

  

Why It Matters to Premier 

  

At Premier, we’re not immune to these challenges. As a mid-sized FM provider, we don’t have the budget of a multinational — but we do have the agility to adapt quickly. 

  

Efficiency matters because our clients are asking for it. It matters because our people want to work smarter, not harder. And it matters because cost pressures are real, and we have to keep delivering a great service without passing those pressures straight onto customers. 

  

In this climate, operational strategy is company strategy. 

  

Tips for Mid-Sized FM Firms 

  

If you’re a mid-tier provider trying to navigate this moment, here are four places to start: 

  

• Map your assets and service delivery properly. You can’t optimise what you can’t see. 

• Use data to question your assumptions. Do you really need daily cleans in every zone? 

• Talk to suppliers, not just buyers. Engineers, site leads, and procurement staff often know where the waste is. 

• Prioritise ROI when adopting tech. Fancy doesn’t mean efficient. Make sure every platform earns its keep. 

  

The pressure to be efficient isn’t going away. But it’s also an opportunity. To modernise. To innovate. And to build businesses that can thrive even when the numbers are tight. 

   

Sources: 

  

[1] IWFM Market Outlook 2024 – https://www.iwfm.org.uk/resource/market-outlook-survey-report-2024.html 

[2] McKinsey & Company, 2023: “The Value of Predictive Maintenance in Facilities” 

[3] CBRE Global FM Insights 2024 – https://www.cbre.com/insights/reports/global-fm-insights-2024 

[4] Mitie Group Plc Annual Report 2023 – https://www.mitie.com/investors/reports-results/