Thoughts on the year ahead from MD Andrew Shelley

Looking ahead to 2026: Confidence, caution and opportunity for FM SMEs

This piece was originally intended for January, but in truth, January got away from us – in the best possible sense. From a work perspective, it was one of the busiest months I can remember, and I know we weren’t alone in that across facilities management.

It was also an unusually intense month at a global level. Davos set the tone for the year ahead, Donald Trump was never far from the headlines – from renewed political influence to comments on Greenland – while developments in Venezuela and Sir Keir Starmer’s visit to China were reminders of how fluid the geopolitical and economic landscape remains.

On the surface, these things can feel a long way from the day-to-day realities of running an FM SME in the UK. But they matter. Global events influence confidence, and confidence is ultimately what markets and businesses are built on. When confidence shifts, investment decisions shift with it.

With that in mind, as we step into 2026, the business landscape for SMEs in facilities management feels both familiar and subtly different. Familiar, because many of the challenges we’ve been navigating for several years – supply chain resilience, recruitment pressures, cost control and rising client expectations – remain firmly in play. Different, because there is a growing sense of momentum and cautious optimism running through the economy and, by extension, our sector.

At Simply Washrooms, the past year, and particularly the last six months, has been one of exceptional growth. Demand has increased, partnerships have strengthened, and confidence among our clients has noticeably improved. As we look ahead, we expect 2026 to build on that progress, even if it doesn’t come without its challenges.

A cautiously improving economic backdrop

From a macroeconomic perspective, there are some encouraging signs as 2026 gets underway. Inflationary pressures have eased from recent highs, energy markets have stabilised, and interest rate expectations are becoming more predictable. For SMEs, that predictability is hugely valuable.

The strong start to the year for the FTSE 100 is another positive signal. While equity markets can feel far removed from operational realities, they are often a useful barometer of wider business confidence. Strong markets tend to reflect belief in earnings resilience, consumer demand and corporate stability – all of which feed through to SMEs over time.

In facilities management, confidence makes a tangible difference. When organisations feel more secure, they are more willing to invest in their workplaces, their people and their service partners. We’re already seeing this in longer-term contracts, deeper collaboration and more open conversations around quality, sustainability and service improvement.

Supply chains: better, but still worth watching closely

Supply chains remain an area where caution is sensible. The extreme disruption of recent years has eased, but global events continue to underline how quickly pressures can re-emerge – whether through geopolitical tensions, shipping disruption or changes in raw material pricing.

For us, this reinforces the importance of strong supplier relationships, sensible stock management and, where possible, diversified sourcing. Local supply has become not just a sustainability consideration but a commercial one, although global networks will always play a role.

The businesses that perform best in 2026 are likely to be those that plan carefully but act decisively, anticipating issues rather than simply reacting to them.

Recruitment and staffing: still a defining issue

Recruitment remains one of the biggest challenges for SMEs in facilities management. Labour markets are tight, competition for good people is intense, and expectations around flexibility and progression continue to evolve.

That said, there is opportunity here too. Businesses that genuinely invest in their people – through training, clear development pathways and a positive culture – are far better placed to attract and retain talent. In a service-led sector, the quality and consistency of people on the ground makes all the difference.

We expect staffing pressures to continue through 2026, particularly as demand across FM services remains strong. Open conversations with clients, realistic workforce planning and close collaboration with partners will be essential. This is an industry-wide challenge, not an individual one.

What this means for our clients and partners

For service providers like us, transparency with clients and partners is critical. Cost pressures haven’t disappeared entirely. Supply chains may still experience periods of strain. Recruitment will remain competitive.

But none of this detracts from the underlying strength of the sector. Facilities management has consistently proven itself to be resilient, adaptable and essential, regardless of economic cycles or wider uncertainty. Strong partnerships, clear communication and aligned expectations matter more than ever.

A positive outlook for the year ahead

Overall, 2026 feels like a year of genuine opportunity. Demand remains strong, confidence is improving, and the value of professional, reliable FM services is well understood.

At Simply Washrooms, our recent growth reflects that wider picture. We enter the year with optimism and ambition, while remaining realistic about the challenges ahead. With the right planning, the right people and the right partnerships, I’m confident the sector, and our business, will continue to move forward positively.

If the past month has reminded us of anything, it’s that the world can change quickly. But it has also reinforced the importance of resilience, clear thinking and confidence – foundations that will matter just as much in 2026 as they do today.