Why 2025 Tariffs Could Upend Facilities Management Plans

Across the facilities management industry, leaders are used to managing through volatility. But 2025 is bringing a new kind of uncertainty, one driven not by labor shortages or pandemic fallout, but by the global ripple effects of tariffs.

A new report from Fexa, FM in Flux: How 2025 Tariffs Are Rewriting Facilities Management Playbooks, reveals how FM professionals are responding to this challenge. Based on a targeted survey of operators and service providers, the report explores how tariffs are impacting costs, slowing projects, and forcing a reset on long-term planning.

The findings tell a story of high awareness but uneven preparedness. While 92 percent of respondents said they are familiar with the latest tariff developments, responses diverged sharply based on company type and role.

Operators are bracing for disruption, but many remain underprepared

Operators appear to be at the epicenter of tariff-related disruption. Sixty-three percent said they expect tariffs to significantly impact their organization over the next 6 to 12 months, compared to just 25 percent of service providers. But when asked whether they’ve taken proactive steps to mitigate these risks, only 38 percent of operators said yes.

Service providers, on the other hand, are acting faster. Nearly 70 percent reported they’ve already started preparing by revising budgets, renegotiating supplier contracts, and building sourcing flexibility into their operations.

The readiness gap may reflect the structural differences between the two groups. Operators often face longer approval cycles, tighter capital budgets, and greater exposure to physical assets, which can make it harder to move quickly. But the consequence of delay is real.

“It may delay capital improvements until there is a more solid foundation on the tariffs… It might also make us pull the trigger faster if we feel there might be a steeper tariff imposed on a certain country,” said one operator surveyed.

Capital costs, HVAC supplies, and compliance efforts are in the crosshairs

Respondents were clear on where they expect tariff impacts to hit hardest. Capital projects topped the list, with 58 percent citing equipment upgrades and replacements as their biggest concern. Nearly one in three also flagged store renovations and repair labor as highly vulnerable.

HVAC and refrigeration supplies emerged as another pressure point. Every operator surveyed said they expect tariffs to impact HVAC/R costs, with 75 percent predicting a moderate to significant increase. Many of these materials are critical to uptime, safety, and energy efficiency, meaning even modest cost increases or delays could have cascading effects.

“Budgets will have to increase due to parts and equipment costing more and dragging out lead times as COVID did,” one middle manager said.

Communication and coordination are emerging as key differentiators

More than half of respondents said they’ve begun communicating tariff-related changes to customers, suppliers, or internal teams. Among service providers, that number rose to 88 percent, with many emphasizing the importance of transparency in maintaining trust and keeping projects on track.

But executives are driving most of those conversations. Only a small number of individual contributors reported being involved, which suggests a potential disconnect between strategic planning and on-the-ground execution.

The report also highlights a concerning trend: while many FM leaders acknowledge the threat tariffs pose, fewer have translated that awareness into specific adjustments to service delivery or operational plans. Thirty-eight percent of respondents said they’re still unsure whether they will need to revise service-level agreements or timelines.

The risks extend beyond budgets

While cost was the most cited concern, the open responses in the survey point to broader operational risks. Respondents raised alarms about deferred maintenance, shrinking margins, reduced client spending, and even job security. One healthcare operator put it bluntly: “My biggest concern is the effect tariffs may have on patient care.”

The message is clear. Tariffs are amplifying existing vulnerabilities in facilities operations. And in a tight labor market with strained supply chains, even minor disruptions can quickly spiral into major issues.

Get the full story — and your action plan

The full report goes beyond the headlines to deliver data-backed insights and practical responses from FM leaders who are already adapting. Whether you're managing multi-site operations, overseeing vendor relationships, or planning capital projects, this is essential reading.

Download FM in Flux to uncover:

• What categories are most at risk for cost spikes and delays
• How leaders are adjusting sourcing, budgets, and SLAs
• Real-world strategies to prepare before the next disruption hits

Start planning smarter. Get the report now and benchmark your readiness against the rest of the industry.