These 10 cost-effective facility management strategies are being used across industries due to the current economic challenges. Even outside of today’s financial difficulties, every company seeks to improve its financial situation. If increasing revenue isn’t realistic, reducing existing costs without sacrificing efficiency is a must.
Businesses today are looking for ways to cut costs and find smarter ways to achieve more with less. As a result, meeting tight budget requirements has become a top priority for facilities managers. Facilities Managers (FMs) are expected to start cutting costs immediately, even without a specific strategy or advanced tools. Here are some practical cost-cutting strategies for FMs:
- Think Long Term
Cost-cutting in facility management starts with long-term planning. Every decision should be viewed as an investment. Consider the long-term return on investment (ROI) for each option. By focusing on future gains, you can prioritize actions and policies that will help tackle challenges before they arise. Different strategies may be needed depending on the specific cost pressures. - Aim for Continuous Improvement
If you want to lower operational costs, your efforts need to be ongoing and precise. Regularly reviewing and improving processes can lead to significant savings over time. Set clear strategies and key performance indicators (KPIs). Break down tasks into smaller projects to make the process more manageable. - Monitor Indoor Air Quality (IAQ)
Good air quality is crucial for both installations and employees. Poor indoor air quality can lead to health issues and higher costs. However, air systems consume a lot of power. Focus on providing adequate air only where needed. Turn off systems in low-traffic areas or when not in use to save energy. - Standardize Maintenance Processes
Simplifying your maintenance process can significantly reduce labor costs. Standard procedures at every level of operation cut down on unnecessary work and make the process more efficient. - Make Informed Purchases
Focus on value rather than just the price when purchasing items or services. Work with suppliers who are open to suggesting cost-saving measures and innovative ideas. Once you find the right vendor, negotiate pricing. Consolidating orders with a single vendor can also reduce delivery and management costs. - Practice Proactive Maintenance
Proactive maintenance is a cost-effective way to avoid expensive reactive maintenance. Regular, scheduled checks and maintenance prevent unexpected breakdowns and costly emergency service calls. This approach also enhances the lifespan of equipment and improves employee safety. - Adopt Smart Technology
Commercial energy costs can be high. The rise of smart technology, especially with the Internet of Things (IoT), offers solutions. Sensors can adjust heating, cooling, and lighting based on occupancy, reducing energy usage. Though smart technology requires an upfront investment, the long-term savings make it worthwhile. A strong business case highlighting ROI can help justify the cost. - Implement a Preventative Maintenance Plan (PMP)
Preventative maintenance reduces the wear and tear of facilities, lowering the need for replacements. A well-planned maintenance schedule prevents breakdowns and reduces repair time. Improved operator safety and reduced downtime lead to better profit margins. - Follow Safe Work Practices
Safe work practices reduce the risk of injury and equipment damage, both of which can be costly. Ensuring that technicians handle tasks with care minimizes these risks. - Leverage Economies of Scale
If you manage multiple facilities, use economies of scale to reduce operating costs. Bulk purchasing and centralized management can lead to significant savings on energy, maintenance, and other expenses.