Minimizing Costs and Maximizing Value: 6 Beneficial Cost-Cutting Facility Management Strategies

Facility management is a cornerstone of smooth business operations for every business, to maintain a smoothly operating office, store, warehouse, or any other commercial facility that it manages. Without comprehensive facility management, many aspects of day-to-day operations can be affected negatively. But leaving the costs of facility management unchecked, the expenses can accumulate very quickly, leading to a strain on the business’ budget. So, the challenge lies in balancing cost-effectiveness and operational excellence together – a balance that can grant your business a competitive edge in top-tier facility management while keeping you profitable.

Cost-cutting facility Management Strategies

In this blog, we will discuss some of the key strategies your business could implement to reduce facility management costs and still maintain the best-managed facility (or facilities). 

1. Preventive Maintenance

The first strategy is one that will save you the need to incur a cost before it becomes necessary. Preventive maintenance will ensure systems and equipment are serviced before problems arise, significantly reducing the risk of costly emergency repairs after a breakdown occurs. 

Facility equipment will wear out over time, that is a given. Whether it’s HVAC units, electrical structure of your facility, or elevators, they are bound to depreciate. By scheduling regular checks and maintenance, you incur a smaller cost instead of having to face a more significant cost for repairing a damaged equipment, or worse, system. Not to mention the operational loss your business could face due to such damage.

This is a cost-cutting facility management strategy which benefits your facility through several ways, such as:

• Extending the lifespan of critical systems like HVAC, elevators, and generators.
• Reducing the chances of expensive downtime caused by equipment failure.
• Avoiding legal fines by keeping facilities compliant with safety regulations.

2. Optimize Energy Usage

Once facility systems are well-maintained, the next frontier of cost savings lies in reducing operational overhead of energy consumption. With globally rising energy costs, optimizing energy usage puts most facilities at an immediate advantage. This cost-cutting facility management strategy doesn’t just save money, it also aligns with sustainability standards of the current business landscape. 

There are several ways through which this strategy can be implemented, including:

• Upgrading to LED lighting to lower electricity bills.
• Using occupancy sensors for lighting and HVAC systems to minimize unnecessary energy consumption.
• Conducting energy audits to identify and rectify areas of energy wastage.

3. Outsource Functions

Outsourcing non-core facility functions like cleaning, security, and landscaping can be a cost-effective alternative to in-house teams. Professional service providers like Glorek, Initial and FMCO, offer specialized expertise and flexible packages that align with business budgets. This way, your business receives comprehensive facility services from skilled workers, and you save costs and resources.

There are many benefits to this strategy, it mainly helps your business:

• Cut costs tied to recruitment, training, and employee benefits.
• Gain access to advanced tools and technology for FM services, without having to invest in them.
• Scale services up or down based on business needs during different circumstances.

4. Invest in Technology and Automation

This cost-cutting facility management strategy will initially require an investment, which can steer many organizations away from it altogether. But the initial investment in technology pays off quickly and starts generating a positive return through improved operational efficiency and reduced labor costs.

Your business can benefit from this strategy through the following ways:

• Using computerized management systems to track maintenance schedules, and avoiding unplanned expenses.
• Implementing IoT sensors to monitor building conditions like temperature and humidity, optimizing resource use.
• Deploying mobile apps such as wowflow to streamline communication between facility teams, and reducing delays.

5. Engage Employees in Cost-Cutting Initiatives

Employees are a critical part of any facility, and their daily habits can impact the costs incurred on facility management. By engaging them through awareness programs and incentive schemes, you can encourage energy conservation and responsible use of facility resources.

Following are some of the ways in which you can implement this cost-cutting facility management strategy:

• Offering incentives for teams that successfully reduce energy usage.
• Training your employees on proper handling of equipment in the facility to avoid unnecessary wear and tear.
• Encouraging them to recycle and separate waste for lowering disposal costs.

Conclusion

In essence, cutting costs doesn’t have to mean cutting corners. You can manage your business facility fairly well while incurring minimal or no costs at all. This can be done by adopting preventive maintenance, optimizing your facility’s energy usage, leveraging technology for facility management, and outsourcing wisely. If your business facility needs a comprehensive solution on a low cost, explore tailored solutions with Glorek’s low-cost facility management services, designed to meet your facility’s unique needs at lowest costs possible.