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Contributed by: Faith Enogieru

How Facilities Maintenance Businesses Can Survive & Thrive in Times of Inflation & Rising Interest Rates

Contributed by James Etchechury | Vice President – Client Relations

Inflation and rising interest rates are both interconnected economic factors with a direct impact on the economy and, in turn, every sector including the facilities maintenance industry.

As a result, these janitorial and maintenance service providers contend with growing costs related to labor, cleaning products, maintenance tools, safety equipment, among others. As costs increase and borrowing becomes more expensive, these companies must navigate the economic challenges successfully by adopting effective strategies that can support maintaining profitability and customer satisfaction in the long run.

Efficient Resource Management: Optimizing resource allocation is essential for facilities maintenance service providers to control costs, maximize productivity, and maintain profitability. The key resources include labor, material and supplies, and equipment which require effective and efficient management through workforce planning and scheduling, supplier relationships, inventory management, and automation.

Diversification of Service Offerings: Exploring new service offerings as well as developing expertise in specialized services can provide upselling opportunities with a competitive edge, while also helping the service providers to diversify their revenue streams. Similarly, entering new markets and regions can expand their operations geographically that lower the impact of inflation on the existing setup.

Long-Term Customer Relations: Most integrated facilities maintenance programs can deliver overall cost savings for customers in the long run. With the economic impact of inflation on all verticals, service providers should encourage customers to enter contracts over an extended period of time for year-over-year savings.

Employee Training, Development, and Retention: Well-trained employees can increase productivity and deliver high-quality services, ensuring customer satisfaction and retention. Additionally, a well-trained workforce can also help mitigate the risks of high turnover during times of inflation as training and development opportunities enhance employees’ skills, efficiency, and overall job satisfaction.

While the impact of inflation is inevitable, the facilities maintenance service providers can minimize its effects on its operations by analyzing numerous factors including regions they offer services in, specific market conditions, customer portfolio, economic trends, and more. By strategies such as diversifying their service offerings, expanding geographically, embracing innovation, and providing value-added services, these services providers can reduce their vulnerability to inflationary pressures.