Executive Summary: What You Need to Know
Facility organizations enter the second half of 2026 in a stronger position than a simple “cooling” headline might suggest. The market is not contracting; rather, it is shifting from broad acceleration toward more managed growth. Workload expectations remain positive, capital budget expectations have improved slightly and staffing plans have shifted toward backfilling and selective growth. At the same time, several components have softened since Q4 2025: overall workload momentum has eased, vendor-demand expectations have cooled and the expansion of outsourcing has slowed. The new issues are global conflict and geopolitical disruption, and this disruption is now showing up in day-to-day facility management (FM) operations in terms of energy reliability, fuel and backup power, materials lead times and continuity planning.
The FM Workload Index (FMWI) is +39, down from roughly +43 in Q4 2025. The +39 indicates more respondents expect workload to increase than to decrease, but the pace has moderated. The regional pattern is important: North America held essentially flat, while the pace in Asia-Pacific, Europe, Africa and Latin America decreased. In other words, the global FM market remains positive, but North America is now the steadiest large region rather than simply one market among several expanding at similar rates.
Budget expectations are constructive but disciplined. About 41% of respondents expect operations and management (O&M) budgets to increase, essentially unchanged from Q4 2025, whereas 44% expect capital expenditure (CapEx) budgets to increase, up modestly from the prior wave of the FM Pulse Research program. These results provide a clear planning signal: facility teams should be ready to deliver capital work and should not assume a broad loosening of day-to- day operating budgets.
Facility Management Workload Index
The FM Workload Index remains positive, signaling continued growth at a more measured pace.
Staffing is one of the more encouraging changes from the previous period. Backfilling open roles and increasing net headcount are now the two leading staffing plans, and the share of organizations planning freezes or reductions fell from roughly 31% to 24%. This change does not point to aggressive expansion; it points to capacity restoration. FM teams are trying to rebuild coverage, replace open roles and add selectively where workload or skill needs justify doing so.
The project pipeline is mostly steady. About 43% of organizations described their pipeline as stable and 20% as expanding, while the remainder reported shrinking, stalled or maintenance-only pipelines. Most organizations are continuing work, but many are prioritizing, sequencing or narrowing their project commitments.
Vendor expectations have cooled sharply. Among service providers, 29% expect client demand to increase, compared with 53% in Q4 2025. Importantly, this change does not indicate a collapse in demand; much of the shift was to the “stay the same” category. Service providers should interpret this change as a move from expansionary optimism to steadier, more competitive demand conditions.
Global conflict and geopolitical disruption are now a major operational planning issue for facility teams. About 71% of organizations report at least a moderate impact in one or more operating areas. Energy and utility cost or reliability is the most visible pressure point, and fuel, generators, backup power, construction materials, renovation materials and transportation-related supplies are the most frequently affected resources. The issue is most acute in Africa, Europe, and Asia-Pacific, but a majority of respondents in North America and Latin America also reported impacts.
Project delivery conditions have improved, but risk has not disappeared.The share of respondents reporting delays on more than 40% of projects fell from roughly 14% to 9%, and the share reporting no project delays rose slightly. The mix of causes changed more meaningfully: supply chain issues are now the most cited driver of delays, overtaking scope changes. Contract changes also shifted, with price-escalation clauses now more common than data-security requirements. The project-risk conversation has moved from primarily scope control and cyber requirements toward lead-time planning, cost escalation and pricing protection.
What the Findings Mean for FM Professionals
FM leaders must plan early, protect budgets, and align sourcing to stay ahead of the rising demand.
Plan for a steady but cooler workload
The index is still positive, so continue to fund and schedule work, but organizations—especially those outside of North America—should build in more caution.
Resource against long hiring timelines
The average time-to-fill is nearly three to four months and have improved slightly since Q4 2025, but technician and custodial vacancies remain elevated in several sectors.
Favor capital readiness
Capital budget optimism rose whereas operating budgets held flat, so position teams to deliver capital projects while keeping operating costs disciplined.
Manage energy and supply exposure
Now that energy costs and reliability are the most affected operating areas and supply chain is now the leading delay driver, maintain backup power, monitor consumption and tighten material lead-time planning.
Watch regional and sector hotspots
Conflict-related impacts and workload cooling are concentrated outside of North America, and asset heavy sectors carry the most exposure.
About the Survey
The findings in this report are based on more than 1,700 responses to a global survey of FM professionals conducted in April and May 2026 (the Q2 2026 wave of the FM Pulse Research program). When a measure was assessed in the same way in the prior wave, the measure is compared against Q4 2025.
Respondents work in 79 countries across North America, Latin America, Europe, Africa and Asia-Pacific, providing a broad international view of facility operations.
FM respondents who reported square footage manage a combined total of roughly 13 billion square feet (1.2 billion m2) of space, spanning every major industry sector and facility size. All figures shown are square feet with square meters provided in parentheses.