INCLEAN MAGAZINE: Delivering the goods on procurement

Ethical sourcing and smart technology solutions will be in the spotlight in 2023 as cleaning companies and facility managers seek to improve their procurement outlook.

For those companies hoping that their supply-chain and procurement woes will ease this year, Kim Puxty issues a reality check.

The CEO of the Building Service Contractors Association of Australia (BSCAA) says cleaning operators can expect costs for essentials such as machinery, chemicals and consumables to rise over and above forecasts. Such inflationary pressures will inevitably make it difficult for contractors to meet fixed-priced contracts for terms of three years or more.

“In the current climate, it is becoming impossible for cleaning contractors to enter into ‘fixed-priced’ contracts,” Puxty says.

“The costs for equipment and chemicals are constantly on the rise and the percentage increases vary. A 3 per cent fixed-price increase will not cover increasing costs.”

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