AI can help FES firms become more efficient, but it doesn’t replace core execution.
Key takeaways
Labor costs remain the biggest pressure point for FES firms.
Successful FES firms balance AI adoption with operational fundamentals.
What is the facility and environmental services outlook?
RSM’s facility and environmental services outlook discusses how firms are under increasing pressure to solve persistent labor shortages and margin compression. In response, many of these organizations are turning to AI as a potential solution. But enterprise value is still shaped by execution across commercial, operational and workforce levers.
Facility and environmental services industry trend #1: Execution drives enterprise value
AI will continue to evolve as part of the business landscape, but it is not a near-term solution to the sector's core challenges. The strongest-performing companies execute consistently across operational dimensions—not by leading with AI narratives, but by optimizing pricing, managing labor effectively and maintaining service consistency across locations.
Facility and environmental services industry trend #2: Firms striving to turn complexity into enterprise value
Facility and environmental services firms are operating in the most complex environment since the Great Recession. Generative artificial intelligence, regulatory shifts, labor dynamics and a structurally higher cost of capital are forcing leaders of these organizations to rethink growth and capital allocation strategies. As complexity mounts, firms must prioritize customer durability and labor productivity.
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