Facilities Managers’ Optimism in Hungary

Facilities managers are optimistic and predict growth in their sector, thanks to the easing of the economic and energy crisis and the ability of national economies to adapt, according to the latest research by the National Association of Facility Management, Building Operation and Maintenance Service Providers (LEO FM).

According to the association's release, LEO's quarterly Facilities Management Leadership Sentiment Index, which surveys leaders of facilities management service organizations on a quarterly basis, is compiled from responses and an index score above 50 indicates that overall expectations for the sector are positive.

This year's second-quarter sentiment index, at 51.55 points, shows an improvement, with concerns about the war, the worsening economy and the energy crisis easing, they said.

Respondents said the war is becoming almost a "familiar" factor, supply chains are slowly recovering and soaring energy prices have corrected quickly thanks to the rapid adjustment of European economies. The return of confidence could also benefit order books in the Facilities Management (FM) sector.

Survey respondents, the companies they manage, expect a 4% increase in revenue and a 1.71% decrease in accounts receivable in the next quarter. Based on their responses, managers expect their business plans to be met, with a 4.8% increase in the number of employees.

The release notes that although the impact of the Russian-Ukrainian conflict on energy prices has eased, experts stress the risks ahead for the coming winter.

They also point out that the Russian-Ukrainian conflict and high energy prices have drastically increased the price of construction materials and components, which is causing a contraction in order books. “The significant increase in raw material prices is also driving up the price of tools, parts and materials used in operations. In addition to this, the combined effects of labor shortages and rising cost of living are putting workers in the sector under severe wage pressure," the statement said.