Half Of FM Teams Are Not Confident In Achieving Compliance

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02 April 2026 | Updated 01 April 2026

Data from the latest SFG20 survey reveals the FM industry's biggest challenges, from compliance and budget constraints to technology and AI adoption.

According to a recent survey, 72% of FM professionals stated that improving compliance and safety remains their top priority. However, only 54% are confident in their organisation’s ability to achieve compliance, a 9% decrease from last year. 

As part of their State of Facilities Management 2026 Report, SFG20, the industry standard for building maintenance, 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. It highlights that the FM industry’s biggest challenges are:

1. Budget constraints and cost reduction

Budget constraints are currently the biggest challenge in the industry, as reported by 69% of respondents. Meanwhile, reducing operational costs is the second biggest priority for FM professionals, with 59% 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% report a budget decrease over the past year, with 11% citing a significant reduction. Overall, 66% 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%) identified AI and automation as the top trend shaping the sector over the next five years, yet organisational readiness remains low, with only 24% rating their organisation as AI-ready. This gap is reflected in investment intentions, as just 1 in 4 (26%) 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%, are being joined by more complex challenges. Integration with existing systems as a barrier has surged from 20% to 52%, alongside resistance to change (41%), a lack of internal expertise (39%), and uncertainty around clear return on investment (34%).

3. Staffing shortages and skills gaps 

FM teams are facing growing capacity pressures, with over half (51%) 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%), digital and IT skills (42%), and sustainability and energy management skills (32%) as the main areas lacking in FM teams. 

Paul Bullard, Chief Product Officer at SFG20, says: "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 FM 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.”

Cogan concluded: “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.

Picture: An image of six workers standing in a cleared building site wearing high-vis and hard hats.

Article written by Dave Mapps | Published 02 April 2026

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