By Paul Irving, Managing Director, MS Maintenance Solutions Ltd
2025 was a demanding year for anyone responsible for commercial buildings. Costs went up, expectations went up, and regulations tightened—all while ESG and digital transformation continued to drive board-level discussion. And now, with the Chancellor’s Autumn Budget released only last week, the sector is preparing for another shift. We haven’t yet seen the full impact on the ground, but the signals are clear enough to understand what Hard FM in 2026 may bring: increased pressure on labour-driven services, new opportunities in public-sector infrastructure, and a renewed need for strong engineering fundamentals. From our position delivering hard services across the South East, we have a clear view of where the challenges—and the real opportunities—are likely to land.
ESG Expectations Are Growing—But Engineering Fundamentals Must Lead
ESG has matured quickly, and the Autumn Budget’s renewed investment in public infrastructure—such as 250 new or refurbished Neighbourhood Health Centres—means sustainability requirements aren’t going anywhere.
But here’s my honest view: in 2025, ESG reporting grew faster than the engineering required to support it. Too many organisations chased documentation while the basics slipped.
In 2026, the providers who succeed will be the ones who get back to fundamentals:
- plant reliability
- resilient critical systems
- tight PPM
- real, defensible compliance
A building can’t be sustainable if it isn’t reliable. ESG only works when engineering is sound.
Compliance Will Tighten Because Real Costs Are Rising
The Budget’s changes to wages and National Insurance put real pressure on labour-intensive technical services. Skilled engineers already command a premium, and these shifts only increase that pressure.
On top of this compliance will become less forgiving.
Clients will expect providers not just to complete tasks, but to prove—conclusively—that they were completed to the right standard, at the right time, by the right person.
A single missed statutory check is now both a risk and a cost. Engineering providers who thrive in 2026 will be the ones who treat compliance like a discipline, not a spreadsheet.
Public-Sector Demand Is Rising—And Expectations Everywhere Are Getting Higher
With new public-sector investment signalled in the Autumn Budget—especially the expansion of health and community infrastructure—we expect to see increased demand for hard-services support across estates. But if 2025 proved anything, it’s that this demand will come with far stricter expectations. Public-sector FM is no longer tolerant of vague reporting, loose documentation or slow response times. Health-linked buildings, in particular, require dependable critical plant, clear lifecycle planning, precise reporting and engineering teams who fully understand the environment they’re operating in.
At the same time, clients across all sectors—commercial, industrial, healthcare and retail—are becoming less patient with delays. Budget pressure following the Autumn Budget means more organisations will be sweating assets for longer. That makes fast, accurate and reliable engineering support not just valuable, but essential.
In 2026, the providers who come out ahead will be the ones who can mobilise quickly, diagnose accurately, fix issues on the first visit wherever possible, and communicate clearly throughout. Precision, speed and dependable engineering aren’t just expectations now—they’re the deciding factors in who wins work and who keeps it.
Capital Spend Is Tightening, Making Maintenance Quality Even More Critical
With reduced incentives for large asset upgrades, more clients will choose to extend the life of major plant rather than replace it. That pushes responsibility firmly onto engineering teams.
We’re already seeing:
- ageing assets requiring more care
- clients requesting more detailed lifecycle guidance
- higher expectations around condition reporting
- greater scrutiny of engineering recommendations
This is where honest, practical engineering becomes critical.
It’s not about stretching assets beyond safe limits—it’s about keeping them performing properly until capital becomes available.
AI Is Useful—but Nothing Replaces an Experienced Engineer
AI continues to get attention in our sector, and it absolutely has value—particularly for reporting, diagnostics support and data analysis.
But let me be direct: AI does not replace engineering judgement. Not now. Not in Hard FM in 2026.
Every output requires a technically competent human to validate it. Compliance doesn’t allow for shortcuts.
AI should be there to support engineers—not sideline them.
Engineering Talent Is Still the Sector’s Real Competitive Advantage
If the Autumn Budget highlighted anything, it’s that labour costs are rising. But in hard FM, the skill and consistency of your engineers determine everything:
- safety
- uptime
- compliance
- energy efficiency
- client confidence
At MS Maintenance Solutions, we see this every day: experienced engineers remain irreplaceable. Investing in them is the smartest commercial decision any FM provider can make in 2026.
My View on 2026: Back to Engineering. Back to Quality.
From budget changes to ESG expectations, from tightening capital spend to rising compliance demands, the landscape is shifting—but the message for 2026 is clear:
- Return to engineering fundamentals
- Treat compliance as a non-negotiable discipline
- Support clients through operational and capital pressure
- Use technology responsibly, with human oversight
- Prioritise asset resilience and lifecycle clarity
2025 was reactive.
2026 will be defined by those who deliver high-quality engineering consistently and transparently.
And that’s exactly where we intend to remain focused.
