Facilities managers encounter two major challenges; to maintain a safe, well-run facility, and find a way to reduce facility maintenance costs. The challenge is real, and often the greatest source of stress on the job.
While the bosses want to lower the budget, there are rules, laws, and codes that still must be followed. The best course of action is to find cost-cutting solutions to optimize operations or increase efficiency.
So, how to optimize your facility maintenance budget? Implement these strategies to review
- life cycle costs
- training programs
- preventive maintenance
- predictive testing and maintenance
Review Life Cycle Costs to Properly Evaluate Equipment Expenses
Life cycle cost analysis is an important part of any equipment purchase. Too often businesses focus on the purchase price of equipment and look for the lowest price to reduce facility maintenance costs.
However, this is short-sighted, and a good overall grasp of asset management is more proactive. A look at the overall ownership cost of the equipment must play a larger role in the decision-making process. Important costs to consider are:
- Purchase price
- Annual maintenance
- Expected life (years)
- Average repair costs (based on years)
- Cost for operation
- Salvage cost (after useful life has ended)
BONUS TIP: Changes to Section 179 of the Tax Code
If your business qualifies, you may take advantage of the recent changes to the tax code. In section 179, it specifies you may deduct the entire purchase price of new equipment at once, as long as it’s put into service within the same tax year.
Previously, businesses were required to take the depreciation of the equipment over a period of 39 years. Thinking about installing solar panels on the roof of your building or upgrading your commercial HVAC system? Now could be the right time. Deduct the entire cost and reinvest the tax savings back into the business. Consult your tax professional for details.
Training Programs Increase Retention and Efficiency; Reduce Accidents
Well-trained employees are safer, more efficient, and save the company money. Accidents are dangerous and costly in medical expenses, increased healthcare premiums, equipment repair, and potential lawsuits. Well-trained employees operate equipment correctly, and usually, more efficiently.
When steps are taken to reduce facility maintenance costs, well-trained employees are crucial in this process. Annual training is wise to ensure employees stay current with their knowledge, as well as learn about any updates to safety or efficiency procedures.
Are there OSHA or industry certifications your employees need? Many industries require ongoing education and certifications to stay current with various equipment and technology. Avoid fines and other issues when you plan for training for your personnel.
Preventive Maintenance is an Investment, Not a Facility Maintenance Expense
The cost of preventive maintenance is always less than repairs and outages. Unfortunately, when cost-cutting measures are needed, preventive maintenance is often cut or delayed because the impact isn’t obvious.
When you cannot schedule preventive maintenance on every piece of equipment you have (unless you have an unlimited budget), choose this maintenance wisely. In an effort to reduce facility maintenance costs, consider scheduling preventive maintenance on your most critical pieces of equipment.
Doing so reduces potential downtime on the equipment you rely on most. Additionally, many companies offer maintenance plans, which could optimize your facility management budget while protecting your equipment investments.
HVAC companies, for example, frequently customize commercial HVAC preventive maintenance plans for customers. Get exactly what you need and not a thing more. Plus, when you bundle services or commit to an annual service plan, the company frequently offers discounts and other perks.
Just remember, preventive maintenance helps your equipment run more efficiently, which saves utility expenses too. Second, regular maintenance catches minor issues before they become big, inconvenient, and expensive. Finally, maintenance extends the useful life of the equipment and protects most manufacturer warranties.
Predictive Testing and Maintenance Proactively Reduces Facility Expenses
Want to monitor your equipment and detect trends it needs maintenance or predicts impending outages? You could benefit from predictive testing and maintenance. It’s a great way to stay on top of outages when your budget does not allow for consistent preventive maintenance.
SLM: Your Partner to Reduce Facility Maintenance Costs for Good
If your goal is to reduce facility maintenance costs, SLM Facility Solutions Nationwide is the answer. Our team offers unequalled customer ROI. How?
We are available 24/7/365 with a team of experts in core facility fields. Our customers have one point of contact and we take care of the rest. Reduce your labor costs and improve your efficiency. Additionally, SLM manages your day-to-day services, accountability, reporting, and compliance.
Have additional facility management needs? SLM partners with companies of various industries to supply services such as waste management, fire suppression systems, HVAC, plumbing, construction and exterior services like graffiti removal and lawn care.
When you are ready to see the many benefits of SLM, we are here to help! We always offer a free facilities assessment so you see in detail our services and savings for your company. Stop losing money on your facility and call us today!