Facility Management: Benefits, Challenges & Strategies

Most people don't think about facility management until something goes wrong: the power cuts out, a pipe bursts, or they're fighting for desk space. But the best facility managers don't just fix problems; they prevent them. They create spaces that run so smoothly, you barely notice they are there.

On average, facility management accounts for 5-10% of a company’s total operating costs. In financial terms, that’s on par with major budget lines like marketing or R&D. Neglect it, and inefficiency bleeds into the bottom line. Your buildings and the people who run them effectively represent one of your largest cost centers. Whether you notice it or not, they’re influencing profitability every single day.

In this guide, we'll explore the key functions of building facility management, benefits, challenges, and how it's evolving to transform unavoidable costs into strategic investments.

What is facility management?

Facility management is a business discipline that aligns space, systems, and service to keep organizations running smoothly and competitively. It spans everything from day-to-day operations and maintenance to long-term strategies for space, safety, and sustainability.

Hard vs. soft facility management

Facility management responsibilities are typically divided into two categories: hard and soft services.

Hard facility management covers the physical assets of a facility—the structural, mechanical, and electrical systems that keep a building functional and compliant with regulations. These services are often legally required and directly tied to the building’s infrastructure.

Soft facility management focuses on the people-oriented services that improve the usability, safety, and comfort of a building. These are less about the structure itself and more about creating a productive, healthy, and supportive environment for occupants.

Strategic vs. tactical facility management

Hard and soft describe which services are delivered. A distinction also exists in how and at what level they are managed.

The majority of on-the-ground services listed above are covered by tactical facility management, which focuses on the here and now. It covers the day-to-day operations that keep a building running.

Strategic facility management looks ahead. It focuses on long-term direction and alignment with organizational objectives. It aims to answer:

• How will space be used as the organization grows?

• How will targets be met?

• How do budgets and vendor contracts align with business goals?

• How does the workplace experience support productivity and culture?

The two go hand in hand: strategy sets the direction, while tactical execution delivers.

8 facility management benefits that have a business impact

Effective facility management creates measurable value for organizations. The following examples illustrate the tangible impact it can have across different types of facilities.

1. Improved operational efficiency

When facility management works well, better operational efficiency is the first thing you'll notice. When facilities are managed proactively, everyday operations move with less friction and issues are addressed before they disrupt work.

There are a number of workflows that drive efficiency:

To support these workflows, facility managers (FMs) increasingly rely on digital platforms alongside traditional methods:

• Computerized Maintenance Management Systems (CMMS) help track work orders and preventive schedules.

• Integrated Workplace Management Systems (IWMS) support space planning and resource allocation.

• Building Management Systems (BMS) monitor HVAC, lighting, and energy use in real time.

More recently, teams are adding 3D building models, or digital twins, to this toolkit. They integrate with existing systems to give teams a shared, spatially accurate reference point that can be used for planning, virtual inspections, and coordination. Together, these platforms help FMs keep buildings operating at peak efficiency.

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2. Cost savings

Every dollar saved on facility operations can be reinvested into growth, innovation, or people. Facility management looks closely at where money leaks out of day-to-day operations, identifying areas to prevent waste. For example:

• Maintenance: Shifting to preventive schedules to lower repair costs and reduce emergency replacements.

• Energy demand: Monitoring systems to determine points of high energy load, and adjusting schedules or load balancers to cut utility bills.

• Leases: Auditing occupancy levels to consolidate space.

• Inventory: Reviewing purchasing patterns and centralizing procurement to prevent overstocking or lower unit costs.

• Contractors: Comparing vendor scopes to consolidate providers.

• Insurance and compliance: Oversee inspections and documentation to lower premiums, reduce claims, and avoid costly regulatory penalties.

Capturing these savings depends on accurate information. Facilities lose money when the documentation that provides clarity on outgoings is incomplete, scattered or outdated. Having a strong facility document management system in place will make the process of cost assessments and savings more straightforward.

3. Enhanced safety

Workplace accidents carry acute costs, both human and financial. OSHA issues significant fines to companies for workplace safety violations, so lapses can swiftly translate into massive liabilities for facilities—not to mention very severe risks for their occupants.

Facility management plays a frontline role in building a safe workplace, ensuring that buildings meet codes and protect workers by:

• Conducting routine inspections of fire systems, ventilation, and emergency exits to reduce the chance of hazards going unnoticed.

• Monitoring high-risk assets (like boilers, electrical systems, or chemical storage areas), so that teams can intervene before major incidents arise.

• Communicating clear procedures for safety, signage, and training to ensure everyone on site follows high standards of care.

4. Extended asset and equipment lifecycle

Replacing building systems or equipment too early can drain capital budgets, while waiting too long risks costly breakdowns. Facility management strikes the balance by extending the useful life of assets through proactive care and accurate recordkeeping.

Key practices include:

• Condition monitoring: Keeping close track of wear and performance helps managers intervene before small issues shorten asset life.

• Preventive maintenance: Routine servicing of HVAC, plumbing, or electrical systems prevents excessive strain that accelerates deterioration.

• Comprehensive documentation: Recording service histories and warranty details ensures repairs and replacements happen at the right time, not based on guesswork.

Facility management combines proactive processes with reliable data to keep assets in service longer. Visual records make asset data more precise and convenient to access. This way, documents like service logs or maintenance schedules can be conveniently found in context. For example, digital twins allow teams to document conditions over time by tagging equipment and spaces with relevant annotations or attachments relating to condition.

5. Better business continuity planning

Unexpected disruptions, whether from natural disasters, system failures, or compliance lapses, can bring operations to a standstill.

The difference between recovery and closure can be a matter of planning. A Business Continuity Plan (BCP) is a structured roadmap that outlines how a facility can maintain or rapidly resume critical operations during crises. Data shows that organizations without a BCP are significantly more likely to fail following a major outage.

Facility management plays a central role in continuity planning. By mapping out contingency procedures and embedding them into daily operations, FMs help businesses to withstand stress.

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Well-prepared facilities don’t just recover faster. They maintain trust, reduce financial losses, and prove resilient in the face of uncertainty.

6. Space optimization

Space is one of the most expensive resources an organization manages. When it’s underutilized, companies waste money; when it’s overcrowded, productivity and morale suffer. Facility management brings balance by aligning space with actual needs.

Effective space optimization involves:

• Analyzing occupancy and usage patterns to understand how people move through and use the environment.

• Maintaining comfort and safety standards, so the physical environment supports wellbeing as well as productivity.

To achieve this, facility managers use occupancy data, workplace surveys, and digital planning tools to refine how space is allocated and used. Digital twins are valuable resources for space planning. Measurements can be captured inside the 3D model, floor plans automatically generated, and layout changes tested virtually, to make space optimization more precise and less disruptive.

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7. Sustainability and environmental impact

Buildings are among the largest drivers of energy use and emissions. FMs directly influence whether a facility wastes resources or operates sustainably. Facility management aims to reduce energy use, cut waste, and align operations with environmental standards.

This work includes upgrading and maintaining HVAC, lighting, and water systems for efficiency, implementing waste reduction programs, and ensuring compliance with increasingly stringent environmental standards.

The payoff is twofold: lower operating costs in the near term and measurable progress toward long-term ESG and corporate sustainability targets.

8. Strategic decision-making

Facility management provides more than day-to-day operational oversight. It gives organizations the insight to make informed, forward-thinking business decisions. By tracking data on space utilization, maintenance costs, energy consumption, and asset performance, facility managers equip leadership with a clear picture of how the built environment supports long-term goals.

This data helps guide investments, whether that’s deciding where to expand, which systems to upgrade, or how to allocate resources most efficiently. When integrated thoughtfully, these insights ensure that facility operations aren’t just reactive, but actively aligned with strategic priorities that help organizations plan for growth with confidence.

The biggest challenges in facility management (and how to tackle them)

Managing facilities processes, especially those that run 24/7, like hospitals, production plants, utilities, and transportation hubs, presents unique challenges.

Facility operations must be kept running smoothly, with little-to-no downtime. That's much easier said than done.

Let’s look at some of the biggest hurdles in facility management and how to tackle them.

Supply chain disruptions

Nearly 30% of companies see supply chain disruptions as their biggest procurement risk. Delays caused by natural disasters, transportation breakdowns, and material shortages can quickly ripple through to harm facility operations.

Facility managers tackle these challenges by anticipating potential bottlenecks and building resilience into operations. Diversifying suppliers, sourcing alternatives, and nearshoring production are common strategies, but successful mitigation also depends on precise planning.

Tools that provide precise measurements of spaces and assets, like Matterport’s Measurement Mode, help teams pre-order or prefabricate materials accurately, reducing waste and avoiding costly misorders.

Cost management

Facility management comes with unavoidable costs: from energy and repairs to staffing and routine upkeep. Rising labor rates, supply inflation, and the complexity of managing multiple sites can make these expenses even more challenging to control.

Smart planning helps, but technology can give facility managers a real edge. Digital twins allow teams to document spaces accurately, cut rework, and reduce manual errors. Remote access to a 3D model also means fewer site visits and less windshield time for FMs. Danone cut on-site inspections by 50% using Matterport’s digital twins, saving hundreds of employee hours and minimizing downtime.

“Matterport helps us foster a culture of innovation and collaboration while improving decision-making. By using digital twins in virtual meetings, we can quickly convene experts to examine and discuss details involving our production lines. We’ve reduced the number of in-person site visits by company personnel up to 50 percent, helping us achieve time savings and reduce travel expenses.”

—Stuart Grace, digital innovation manager, Danone

Regulatory compliance

Facility management carries a broad set of compliance responsibilities, from safety and labor regulations to environmental standards, information security, and vendor accountability. Staying on top of these requirements isn’t optional.

Facility managers can mitigate compliance risks through tactics such as:

• Regular audits and inspections to systematically review facilities to detect hazards or regulatory gaps.

• Accurate documentation that captures MEP systems, spatial layouts, and other critical details to ensure audit-ready records.

• Vendor oversight that carefully vets contractors and documents compliance obligations. Some liability can be transferred through contract agreements. This protects organizations from claims related to work performed by third-party service providers on-site.

• Maintaining insurance support records to accelerate claims and reduce operational downtime after incidents.

Inspections and audits are essential to meet safety and environmental standards, but more often than not, they get in the way of day-to-day activities.

Digital twins make compliance far less disruptive. Scans capture accurate details of MEP systems and spatial layouts for audit-ready documentation, while tags allow teams to annotate assets with inspection notes or regulatory requirements directly in the model. This not only supports routine compliance checks but can also speed up processes like insurance claims and minimize productivity losses.

Maintenance forecasting

Equipment failures are costly and disruptive, especially when aging infrastructure and limited documentation make predicting the end of a system’s life difficult. Facility managers need a way to anticipate maintenance requirements rather than react after the fact.

The best maintenance forecasting strategies combine historical records and operational insights to predict when assets and systems are likely to require service. This data contributes to predictive maintenance, a technique that allows facility management teams to schedule interventions precisely when they’re needed.

INVISTA, a global leader in chemical manufacturing, used the Matterport and AWS IoT Twinmaker integration to revolutionize their maintenance strategy, despite physical access constraints. By creating detailed 3D digital twins of their facilities, INVISTA implemented:

• Remote monitoring via real-time visualization of equipment conditions, reducing the need for on-site inspections.

• Predictive analytics from integrated IoT sensor data that identified trends and potential failures, allowing for timely interventions.

Check out the INVISTA webinar to learn more about how INVISTA achieved operational excellence with Matterport and AWS.

Emergency preparedness and response

A well-structured plan for emergency and disaster management is crucial for protecting people and facility assets in the event of natural disasters or equipment failure. With a plan, backup systems such as power and HVAC can be well-maintained and on standby if needed to keep operations going after the incident temporarily.

Immersive 3D models of facilities provide a safe, accessible way to prepare teams and guide responders. One of the largest growing use cases for digital twins is training. This allows personnel to explore the building remotely and safely, gaining spatial awareness and understanding the space before stepping on-site. They can be used both in preparation and response scenarios.

1. For training:

• Workers can navigate virtual walkthroughs to familiarize themselves with precisely captured operator panels, gauges, and control stations.

• New hires and rotating staff follow guided “training tours” that simulate emergency workflows in a risk-free environment.

• Safety equipment, procedures, and instructional videos are linked directly in the twin for on-demand reference.

2. When supporting emergency response on-site:

• Responders can review the twin to prioritize interventions and understand dependencies among critical systems.

• Personnel can make faster, more informed decisions on-site, reducing risk to both themselves and the facility.

• Conveniently locate safety equipment like eyewash stations, fire extinguishers, and exits, with tags linked to SOPs or instructional videos.

By incorporating immersive training and situational tools, facilities are more prepared to succeed when every second counts.

Stay ahead of the fix: a facility management checklist to get started

Keeping a facility running smoothly requires juggling countless responsibilities. This checklist of facility management best practices distills the essential functions and tasks into a clear, actionable framework.

1. Documentation and compliance

• Maintain up-to-date records: Ensure all floor plans, equipment manuals, and safety protocols are current.

• Track incidents and maintenance: Log all incidents, maintenance activities, and visitor or contractor interactions.

• Conduct periodic audits: Regularly review documentation for accuracy and compliance with regulations.

2. Safety and inspections

• Monitor critical safety equipment: Regularly check fire extinguishers, first aid kits, and emergency exits for accessibility and functionality.

• Inspect high-risk areas: Routinely examine areas like chemical storage, mechanical rooms, and electrical panels.

• Perform comprehensive safety audits: Schedule thorough safety inspections to ensure adherence to safety standards and regulations.

3. Asset management

• Tag and track assets: Implement a system to label and monitor all critical equipment and infrastructure.

• Record condition updates: Maintain logs of asset conditions and any maintenance or repairs performed.

• Reconcile inventory: Periodically verify physical assets against records to ensure accuracy and accountability.

4. Environmental compliance

• Monitor resource usage: Track energy, water, and waste consumption to identify inefficiencies.

• Implement sustainable practices: Promote energy-efficient operations and waste reduction initiatives.

• Review compliance: Ensure operations align with environmental regulations and sustainability goals.

5. Training for emergency preparedness

• Develop training materials: Create immersive onboarding and safety materials using a digital twin.

• Conduct drills: Regularly perform emergency response drills to familiarize staff with procedures.

• Maintain accessibility: Ensure critical system manuals and emergency procedures are easily accessible for all personnel.