Facilities Management News

Companies outsourcing their facilities management typically save between 10 and 15% annually. For c-store, grocery, and retail, this accounts for a sizable chunk of the operating budget. Finding the right facilities management partner can be a game-changer, providing access to skilled labor, consistent maintenance, project management, tailored services, and even help with scalability and expansion, all with transparent costs and an overall reduction in expenses. 

Every business wants to adopt and sustain a proactive maintenance agenda. Getting ahead of potential problems typically translates to a longer life for equipment, decreased maintenance costs and a lower risk of downtime. Those are all worthy objectives for any facility. Making the shift from reactive to proactive maintenance involves a complete transformation. 

No matter the size of your business, the industry you’re in or the number of locations you have, it’s almost certain that you’ll have to plan capital projects.

Keeping facilities up and running is a critical concern for everyone from the C-suite to facilities managers and front line workers. With less downtime, there are fewer disruptions, more productivity and an enhanced customer experience.

In theory, utilizing service providers with lower rates would reduce the overall cost of facility maintenance. However, the hourly rate charged by technicians is only one factor that should be considered.

According to Reliability Web, maintenance management typically makes up 40% to 50% of operational budgets. Therefore, the possible savings from increased efficiency, such as the ability to spend money where it will create the most value and reducing the number of unnecessary maintenance orders, is significant. Supporting this, Transcendent reported that the average company can save between 12% and 18% of their maintenance budgets by prioritizing preventative maintenance over reactive maintenance. 

Understanding the maintenance cost structure of a single facility can be a challenge. Stakeholders first need to uncover where their spend is going and measure the effectiveness of their facilities management program. Organizations with nationwide facilities face a more daunting challenge, as getting visibility into spend per location may be difficult to achieve.