For decades, IFMA has recognized and championed the business case for energy efficiency — highlighting its role in enhancing U.S. economic competitiveness, reducing environmental waste and strengthening national security.

Consumers and businesses alike rely on Energy Star ratings when making informed decisions about appliances and equipment. Eliminating this publicly funded resource without consulting the industries and individuals who depend on it is shortsighted and irresponsible. Dean Stanberry, immediate past chair of IFMA

Facility managers face the realities of energy management every day. Commercial buildings are among the largest consumers of electricity in the United States, making them key targets for energy-saving opportunities. Facility managers not only reduce operational costs through energy-efficient strategies but also educate building occupants on best practices and emerging technologies.

Energy Star is not just for U.S. households — it’s a global benchmark with far-reaching influence across commercial facilities of every type. From HVAC systems to lighting, life safety equipment and manufacturing tools, Energy Star provides independent, trusted confirmation of quality and efficiency. Facility managers, building owners and employers depend on this program to maintain healthy, sustainable workplaces that support core business functions. Michael V. Geary, CAE, President & CEO of IFMA

IFMA says it remains committed to collaborating with policymakers and industry stakeholders worldwide to promote efficiency, innovation and sustainability in the built environment.

The post IFMA urges Congress to preserve Energy Star and other critical building sector programs appeared first on FMLink.

Energy savings of up to 15%

Advantages of PCM ceiling panels stem from the fact that they support thermal comfort with no mechanics, energy expenditure, or fossils fuels to burn! A valuable, sustainable solution for a world prioritizing decarbonization, ceiling panels with PCM technology can reduce energy costs and consumption by as much as 15%.* By enabling energy savings, these ceilings offer advantages including:

• Reduced reliance on fossil-fuel powered HVAC systems
• Less wear on HVAC systems — critical to facilities with aging systems and strict budgets
• Improved thermal comfort — especially well-suited for changing climates or environments with daily hot-cold fluctuations
• Ability to enhance indoor environmental quality with features like acoustical sound blocking and absorption
• Easy installation and little-to-no maintenance

Energy-saving ceiling products also fit into the thermal comfort portion of the WELL Building Standard and can contribute to energy and atmosphere credits for LEED.

Up to 50% in tax credits

While the above advantages can work to help a facility realize ongoing savings related to lower energy consumption and less reliance on mechanical heating and cooling — a project owner can get a “head start” on cost benefits because PCM ceiling panels qualify for certain tax credits. Projects utilizing energy-saving ceiling panels may qualify for Investment Tax Credit (ITC) 48E, which was introduced under the Inflation Reduction Act of 2022 and offers tax incentives for investments in clean energy technologies. Because of their thermal energy storage properties, most projects using PCM ceiling panels may qualify:

• Up to 40% federal tax credit
• Additional 10% tax credit if the project is deployed in an “Energy Community.” (i.e., a Brownfields site or fossil-fuel-dependent community)

When investing in energy-saving ceilings for a project, consider a solution that helps you maximize tax savings opportunities. For example, when installing an Armstrong Templok Energy Saving Ceiling, the ceiling panels, and associated grid, trim, and labor all qualify for tax credits under ITC 48E. Moreover, these panels are made in the U.S.A. of domestic and global content, meeting a requirement for additional tax savings.**

Qualifying energy saving ceiling projects include those of taxpayers and non-taxpaying entities and span multiple sectors, including:

• Public — such as government entities
• Private — corporations, healthcare facilities and others
• Education — K-12 and higher education
• 501 (c)(3) charitable organizations

The list of ideal projects is extensive and includes K-12 schools, public and private universities, dorms, museums, hospitals, nonprofit offices/facilities, military bases, courthouses, faith-based buildings, convention centers, and arenas — to name a few. In addition to getting information from the ceiling manufacturer, it’s important to consult your tax advisor to confirm qualification of your project.

More affordable, more sustainable

Thanks to tax credits, the use of energy-saving ceilings could make your next construction or renovation project more affordable. And, with PCM technology helping reduce energy costs, the impact on your bottom line won’t stop there. You can learn more about energy saving ceilings and related tax credits by visiting Armstrong Ceilings.

Notes:

• *Cooling energy savings according to research estimates measured in lab tests. Results may vary.
• ** This article lists various federal tax credits and deductions that your project may qualify for when purchasing Armstrong TEMPLOK Energy Saving Ceilings. Please consult your own tax attorney or advisor.
• LEED is a registered trademark of the U.S. Green Building Council; WELL Building Standard is a trademark of the Well Building Institute.

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In the Department of Electrical and Computer Engineering at Texas A&M, Dr. Thomas Overbye, a professor and the Texas A&M Engineering Experiment Station Smart Grid Center director, and Dr. Jonathan Snodgrass, a senior research engineer, are working to understand the ramifications of the increased number of EVs on the power grid — and how to potentially use EVs to the grid’s advantage.

Dr. Snodgrass pointed out:

If everyone got an electric vehicle, it would more or less double the usage of the grid, and that’s a big deal. So, the question is, how do we leverage the flexibility of residential charging? Because if EVs are flexible, they can actually be an asset to the grid, not just a liability.

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Flexible charging is used to maintain balance, Snodgrass added. For instance, right now, when a user plugs their car in for the night, the car starts charging immediately, which adds strain on the grid, since the grid usually has its highest load between 4:00 and 7:00 p.m. However, if we can use the “smarts” in an EV charger to allow the utility company to change when the vehicle charges, the EV can truly become a flexible load.

Known as a price-responsive load, the EV could charge for the first three hours, then stop and start again, depending on what the grid can handle. All of this would consider a user’s driving needs and ensure their car is charged before they leave the next morning.

Dr. Snodgrass continued:

Suppose you get home at eight or nine at night after running your errands and picking up your kids. When you plug in your car, you don’t necessarily care when it charges, you just care if it’s going to have enough juice to get you to work and school in the morning.

Charging levels

Typically, charging EV batteries can range from hours to days, depending on the charging speed. Level 1 uses a standard 120-volt house outlet and can take days to fully charge a car or truck. Level 2 uses a 240-volt supply, the kind that water heaters need, and can charge most electric vehicles overnight.

If a user wants to quickly charge their EV, they use Level 3 fast chargers, which are high-speed charging stations. A fast charger at 50 to 350 kilowatts has the same electricity demand as 25 to 50 houses and can charge a car in 30 to 60 minutes. Since these stations have their own converters, the car does not have to rely on its slower internal converter. However, it’s a big load on the grid.

Imagine several people pull up at the same time to a charging station and plug in their EVs to DC fast chargers. A megawatt of load would be added to the power grid almost immediately, and the frequency of the grid would fluctuate because the balance between electricity supply and demand is off. The grid prefers a load that changes predictably and smoothly.

Dr. Snodgrass explained:

The power grid can handle multiple megawatt loads, switching in and out, but it puts pressure on the grid. It’s not designed for that. It’s like, can you drop a glass on the floor without it breaking? Yeah, totally. But it’s not designed to be dropped on the floor. It was designed to be placed down carefully and lifted up carefully.

Partnerships

The research team is working with the Texas A&M Transportation Institute (TTI) and ElectroTempo, a leading software firm and a startup out of TTI.

Dr. Snodgrass remarked:

TTI is one of the best transportation centers in the world, and we have one of the best grid modeling groups in the country led by Professor Overbye, the group leader for energy and power in the electrical and computer engineering department. For a university, we have some of the best grid modeling and simulation capabilities in the world.

ElectroTempo takes real transportation data (i.e. real miles traveled) and converts it to EV miles to determine a forecasted load. They pass the data to Overbye’s team, and they perform grid simulations to make predictions about the impact it would have on the grid if “x” percent of people switched to EVs.

With that information, they could inform utility companies if distribution, transmission lines or transformers need to be upgraded or if they could expect overload problems in certain areas. Some of those issues could be solved by shifting the EV load around or by replacing power lines or transformers before they become overloaded.

Dr. Snodgrass concluded:

In some cases, it may not be worth electrifying a certain area. For example, utilities should tell people who live in this neighborhood, if you really want electric vehicles, the first 10% of customers can electrify, no problem. After that, they will have to pay a surcharge because utilities will need to upgrade your line. It depends on how utility companies want to handle it.

Funding for this research is administered by the Texas A&M Engineering Experiment Station (TEES), the official research agency for Texas A&M Engineering. Learn more at the Smart Grid Center.

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Overview

In a small community where resources are finite, Union City, Indiana, faced the challenge of upgrading critical infrastructure while balancing financial, sustainability, and community priorities. Through a strategic partnership with ABM, the city implemented a comprehensive energy, lighting, HVAC, and infrastructure upgrade that exceeded financial, operational, and community goals — maximizing outcomes while minimizing waste.

“ABM played a critical role in helping us identify what we could be doing better — how we could be more efficient and sound from an infrastructure perspective,” said Union City, Indiana, Mayor Chad Spence. “Their expertise helped us hit the mark on sustainability, financial responsibility, and community impact.”

Challenges

Union City’s historic infrastructure, including a museum housed in a former railroad hotel, required urgent repairs. Leaky roofs and outdated systems posed risks to both the buildings and their irreplaceable contents. Additionally, high energy consumption — particularly at wastewater treatment facilities — placed a significant financial burden on the city’s budget, limiting opportunities for community growth and development.

Key challenges included:

• Aging infrastructure in need of modernization
• High energy costs straining the city’s budget
• Preserving historic structures while improving efficiency
• Overcoming permitting and regulatory hurdles for renewable energy solutions

An engineering and infrastructure solution

ABM’s industry-leading Engineering & Infrastructure Solutions team, led by Chris Mastrianni, Joe Boetsch, Ann Smith (LEED AP), and Erick Dustin, worked closely with Union City leadership to design a future-focused plan.

Key project components:

• Energy efficiency and sustainability: Integration of solar arrays to reduce dependency on the grid and lower operational costs
• Infrastructure upgrades: Modernization of lighting, HVAC systems, and wastewater treatment facilities to improve efficiency and performance
• Financial innovation: A strategic financial model that leveraged energy savings to fund additional infrastructure improvements
• Community impact: Reinvesting cost savings into critical areas such as parks, streets, and sidewalks

Results and impact

By thinking outside the box and leveraging innovative solutions, ABM helped Union City achieve:

• Significant energy cost savings – Enabling reallocation of funds to community growth initiatives
• Improved infrastructure efficiency – Enhancing operational performance across city facilities
• Preserved historic structures – Protecting the city’s heritage while modernizing key assets
• Sustainability and resiliency – Positioning the city for a more energy-independent future

Union City powers a sustainable future

Union City’s successful partnership with ABM showcases how smart infrastructure investment can drive long-term sustainability, financial efficiency, and community growth. By prioritizing innovation, fiscal responsibility, and sustainability, Union City has set a precedent for how small communities can thrive through strategic energy and infrastructure improvements.

The “ABM Partners with Union City to Upgrade Municipal Infrastructure” video and transcript are available at ABM.

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The problem is most companies don’t treat building automation this way. They approach it as a necessary expense, focusing on immediate operational needs, short-term projects and the latest shiny platforms, without a cohesive strategy. This mindset turns automation into an endless series of costs, instead of what it truly can be: a powerful investment designed to compound operational and business value over time.

To change this narrative, we need to reframe how we think about building automation. What if we managed it like Berkshire Hathaway manages its investments? What would it take to build an automation and integration portfolio that not only supports business operations but drives them forward with the same clarity, confidence, and long-term payoff as Buffett’s legendary stock picks? Let’s break it down.

The core philosophy: Building automation as an investment, not an expense

At the heart of Buffett’s success is a simple philosophy: focus on intrinsic value, invest with a long-term horizon, and avoid unnecessary risks. This approach isn’t just for Wall Street; it’s equally powerful in the world of building automation and integration.

Most organizations treat automation as a utility implemented to meet a baseline need, with the primary goal of keeping costs low. But that’s like building a financial portfolio by simply buying the cheapest stocks available. It’s reactive, shortsighted and often expensive in the long run due to inefficiencies, integration challenges and missed opportunities.

Now flip that mindset. Imagine treating every automation and integration decision as if it were an investment with the potential to either compound value or drain resources over time. Instead of asking, “How much does this cost?” start asking, “What’s the long-term return on this investment?” This shift in thinking creates discipline, clarity and purpose. It forces leaders to evaluate automation not just for its features or price tag, but for its strategic fit, scalability, and impact on operational and business goals.

Applying Buffett’s principles to building automation

Warren Buffett’s investment principles aren’t complicated, but their simplicity hides profound wisdom. When applied to automation, they create a framework for making smarter, more strategic decisions.

1. 

   Value over price — Buffett famously said, “Price is what you pay; value is what you get.” In building automation, it’s easy to chase the cheapest solution or the flashiest new platform. But the real question is: what value will this technology deliver over time? A higher upfront cost might yield greater long-term efficiency, scalability, and security — delivering a better return than a cheaper alternative that becomes obsolete or requires constant workarounds.

2. Circle of competence — Buffett only invests in businesses he understands deeply. Similarly, companies need to make automation decisions within their “circle of competence.” This doesn’t mean avoiding innovation, but it does mean ensuring that decisions are informed by a clear understanding of how technology fits into the broader operational and business strategy. Too often, organizations invest in platforms they don’t fully understand, leading to poor adoption, misalignment, wasted resources and the lack of delivering outcomes.
3. Margin of safety — Buffett always looks for a margin of safety — an investment buffer that protects against unforeseen risks. In automation, this translates to resilience. Are your systems designed with redundancy? Is your cybersecurity posture strong enough to withstand unexpected threats? Do you have backup strategies for critical operations? A well-managed automation portfolio isn’t just about efficiency; it’s about durability in the face of uncertainty.
4. Long-term thinking — Perhaps Buffett’s most defining characteristic is his patience. He invests for the long haul, ignoring short-term market noise. In building automation, this means resisting the temptation of quick fixes that don’t align with the company’s strategic goals. It’s easy to get excited about the latest platform, but does it support where the business wants to be in five or ten years? Sustainable growth comes from technologies that integrate, scale, and adapt over time — not from chasing every trend.

Becoming the “Warren Buffett of Building Automation” in your organization

So, what does it take to earn that title — the person whose automation and integration decisions are as trusted and respected as Buffett’s investment calls?

• Clarity in decision-making is key. Just as Buffett has an investment thesis for every stock he buys, building automation leaders should have a clear rationale for every major technology decision. What problem does it solve? How does it align with business goals? What outcomes do I want to achieve? What’s the expected return on investment — not just financially, but in terms of operational efficiency, sustainability, and scalability?
• Patience and discipline are equally important. In the fast-paced world of building technology, it’s easy to feel pressured to act quickly. But speed without strategy leads to mistakes. The best automation leaders know when to move fast and when to pause, assess and make deliberate choices.
• Data-driven judgments separate great leaders from average ones. Buffett doesn’t invest based on hype; he relies on data, analysis and rigorous evaluation. In automation, this means leveraging performance metrics, energy usage trends, cost efficiency and business impact to guide decisions.
• Decisive allocation is crucial. Not every technology deserves equal attention or investment. Great building  automation leaders know where to double down — investing heavily in platforms that drive efficiency and adaptability — and where to cut losses on underperforming systems. Just like managing a financial portfolio, the goal is to maximize returns while minimizing waste.

Managing risk like a pro: The Berkshire Playbook for building automation

Buffett doesn’t fear risk; he manages it. He avoids unnecessary risks while embracing calculated ones that offer strong potential rewards. This mindset applies perfectly to automation, where risk management isn’t just about cybersecurity, it’s about operational resilience.

For example, consider vendor risk. Many companies become overly reliant on a single provider without considering the long-term implications. What happens if that vendor’s pricing model changes, their service quality drops, or they go out of business? A Buffett-style approach diversifies dependencies without creating unnecessary complexity.

The same goes for technical debt. Just as Buffett avoids companies with poor financial fundamentals, smart automation leaders avoid solutions that are fragile, overcomplicated, or unsustainable. The goal is to build systems that are as robust and adaptable as a well-diversified investment portfolio.

Are you managing automation like Warren Buffett would?

If you’re serious about transforming how your organization approaches building automation, ask yourself:

• Do you have a clear, strategic rationale behind your major automation investments?
• Are your decisions driven by long-term value, not just short-term fixes?
• Is your automation portfolio resilient, adaptable, and aligned with your business goals?
• Are you actively managing risks — or just hoping things won’t go wrong?

If the answer to any of these questions is “no,” it’s time to rethink your approach.

The legacy of strategic building automation leadership

Becoming the Warren Buffett of building automation isn’t about being the smartest person in the room. It’s about being the most disciplined, strategic, and focused on long-term outcomes. Because in the end, great automation leadership isn’t about technology, it’s about creating lasting business value.

So, the next time you’re faced with an automation decision, ask yourself: “Am I managing this like an expense — or like an investment that will shape the future of this company?”

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In this study of U.S. building managers and decision makers with more than 250 building occupants, Honeywell found that across property types, respondents are increasingly using AI to help improve process efficiency, productivity and operations. However, since most respondents (92%) reported challenges in hiring skilled, tech-savvy individuals, a greater opportunity remains ahead for building operations to tap into AI’s capabilities to enhance employee training, augment their current workforce and ultimately help upskill labor to support the sector’s rapidly changing needs.

Billal Hammoud, president and CEO of Honeywell’s Building Automation segment,  stated:

AI in buildings is a game-changer that not only helps decision makers potentially maximize operations and efficiencies, but it can also help improve security for guests, minimize energy usage for tenants and reduce costly downtime by flagging issues before they happen. With basic AI functions already integrated into many commercial buildings, leaders should pivot their focus to the upskilling opportunities it presents for employees who can tap into AI to help buildings reduce carbon emissions while being more secure and operationally efficient.

For commercial buildings, Honeywell’s research found that AI has moved beyond experimental and is now becoming mainstream, as evidenced by its increased usage for day-to-day building management. Key findings include:

• Nearly 60% of respondents have already adopted AI to streamline maintenance and repair processes.
  • One of the most common use cases is predictive maintenance, which helps identify issues before they become larger concerns and is currently used by 49% of respondents.
• Security and safety are also top-of-mind for more than half of all respondents.
  • Frequent use cases cited by respondents were monitoring for unusual behavior (63%), location tracking systems for occupant safety (52%) and biometrics-based access control systems (45%).
• Decision makers are turning to AI for everything from temperature control to water usage.
  • More than half (55%) of respondents currently use AI for overall building energy management, 41% use it for water usage monitoring, and 40% implement it for temperature comfort.

To learn more about the AI in Buildings research results and how Honeywell’s solutions are helping buildings deliver stronger operational efficiency and fire and life safety, visit Honeywell’s Building Automation division.

Honeywell commissioned Wakefield Research to conduct the Honeywell Building Managers Research Survey, which polled 250 U.S. building managers and senior decision makers across building types including offices, hospitals, airports, schools, universities, hotels and data centers. To participate in the research, respondents had to use AI-enabled property management systems in buildings with 250+ occupants.

Honeywell is an integrated operating company serving a broad range of industries and geographies around the world. Its business is aligned with three megatrends — automation, the future of aviation and energy transition — underpinned by the Honeywell Accelerator operating system and Honeywell Forge IoT platform. The company helps organizations solve complex challenges, providing actionable solutions and innovations through its Aerospace Technologies, Industrial Automation, Building Automation and Energy and Sustainability Solutions business segments to increase safety, security and sustainability.

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Effective December 1, 2024, subsidiaries Amerlux and Delta Controls will fully integrate with DIBT, with their company names changing to Delta Intelligent Building Technologies (USA), LLC and Delta Intelligent Building Technologies (Canada), Inc. respectively.

The aforementioned integration further enhances the overall offering and ensures a seamless customer experience with Delta’s comprehensive smart building solutions. Importantly, Amerlux, known for its high-performance design-focused architectural lighting, and Delta Controls, renowned for its cutting-edge building automation systems, will continue as brands of Delta to represent respective product lines under the DIBT umbrella, ensuring continuity in product quality and innovation.

Products and solutions from building automation provider LOYTEC, as well as AI-based video surveillance solutions providers March Networks and VIVOTEK, will also be integral parts of DIBT’s full solutions offering.

Bill Lo, general manager of Delta’s Building Automation Business Group, stated:

With DIBT, Delta reinforces its leadership in the smart building sector by providing end-to-end solutions that cover every aspect of buildings’ management. Our goal is to deliver tailored solutions that leverage the strengths of Delta’s premier brands, while also enhancing our sales, system integration, and customer service capabilities. This initiative will empower customers to meet the growing demands of smart buildings, city infrastructure and sustainability.

Guided by its mission, “To provide innovative, clean, and energy-efficient solutions for a better tomorrow,” Delta is aligning its state-of-the-art smart building solutions through DIBT to help customers across North America drive operational excellence and future-ready building management.

For more information regarding Delta Intelligent Building Technologies, visit DIBT.

Delta Electronics (Americas) serves the IT, communications, industrial automation, renewable energy, lighting, power tool, automotive electric vehicle, and other major industries through multiple locations in the United States, Mexico and South America. Products include power electronics, DC brushless fans, liquid cooling, EV charging, visual displays, industrial automation, networking products, electronic components, consumer products and energy efficient and renewable energy products.

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DLC research shows that adding NLCs to commercial lighting upgrades can cut a project’s new lighting load in half. Taking this a step further, integrating lighting controls with HVAC can save up to 30 percent of HVAC energy and 20 percent of the total energy load in large commercial buildings, according to ACEEE. Adoption of this strategy has lagged, however, largely due to the complexity of integration projects, which require collaboration between building owners and operators, electrical/lighting engineers and contractors, and mechanical/HVAC engineers and contractors, who often work independently.

DLC Executive Director and CEO Tina Halfpenny stated:

Our NLC-HVAC Integration Toolkit facilitates implementation of projects that can significantly reduce energy waste, while lowering operating costs for owners. Whether you have experience with NLC-HVAC integration or it’s a brand-new concept, the DLC’s toolkit opens the door to better coordinated projects that yield more energy and cost benefits. We’re excited to get it into the market and start seeing the results.

Development of the NLC-HVAC Integration Toolkit grew from findings of a working group comprising experts across the lighting, HVAC and utility industries convened by the DLC in 2023. The group named lack of communication between people working in lighting and those involved in HVAC controls as a major hurdle to achieving energy savings on a scale only possible by linking lighting controls with HVAC. In developing the toolkit, the DLC aims to break down barriers and improve collaboration between the professional worlds of lighting and HVAC, enabling greater savings.

 Toolkit components include:

·       Decision Tree to determine which projects are good candidates for integration and avoid those where success is unlikely;

·       Case Studies presenting successful integration examples, searchable by building type;

·       Template of a sample construction integration specification aligned with CSI Division 25 (a section within the Construction Specifications Institute (CSI) MasterFormat regarding integrated automation);

·       Handbook that concisely describes the basic information that each group needs to know, with a glossary and references to relevant standards;

·       Responsibility Matrix in the form of a sample spreadsheet that presents an integration project in terms of major tasks and indicates which party is responsible for each one.

By bridging the gap between NLC and HVAC systems, the toolkit can help facilities use building automation to level up energy efficiency. The toolkit is designed to fit the needs of an array of professionals — including building management system contractors, specifiers, utilities, manufacturers, engineers and designers — and is available to download free of charge.

The NLC-HVAC Integration Toolkit is available at DLC. The DLC website has more information about NLC-HVAC integration, including an introductory video based on a 2024 DLC Controls Summit presentation. 

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As facilities age, so do the mechanical systems that keep them running efficiently. One of the most critical of all systems is, of course, HVAC (Heating, Ventilation, and Air Conditioning). Not only does the HVAC system play an essential role in maintaining a comfortable and safe environment for occupants, it also protects the integrity of high-value inventory, and in the case of healthcare facilities, ensures safe operating conditions — an absolute matter of life and death. However, more than most elements in the built environment, HVAC systems are often encumbered by deferred maintenance which can lead to higher operating costs, reduced energy efficiency and even catastrophic system failures.

In this article, we’ll explore the risks associated with deferring HVAC maintenance, the challenges of securing budget approval for upgrades, and how building owners and facility managers (FMs) can leverage incentive programs to defray the cost of HVAC system upgrades.

The risks of deferred HVAC maintenance

One of the most significant challenges FMs encounter is deferred maintenance on the HVAC system, the consequences of which can vary widely depending on the type of building and its usage profile.

For critical care facilities such as hospitals, the risk of deferring HVAC maintenance can impair the institutional mission. For example, a hospital’s HVAC system is responsible for cooling sensitive equipment such as MRI machines, as well as maintaining the climate in data centers that store patient information. In these settings, any HVAC system failure or deferred maintenance can have catastrophic consequences.

On the other hand, office buildings typically have a far lower risk profile in the event of an HVAC failure as the building’s occupancy is usually limited to specific hours and temporary measures such as portable cooling or heating units can mitigate the immediate effects of a system outage. However, even in office buildings, deferring maintenance can still be quite costly in the long run—putting such strain on the system can lead to high emergency repairs.  Whether the building is a hospital, office, or manufacturing facility, HVAC systems require regular attention to prevent minor issues from escalating to emergencies. 

Challenges of securing budget approval for upgrades

One of the main reasons the HVAC system goes unaddressed until a failure is the difficulty FMs have in securing budget approvals for proper maintenance. The “if it ain’t broke, don’t fix it” mentality often prevails amongst the C-Suite, making it difficult for FMs to justify capital expenditures for servicing equipment that may still be functioning, though it is aging.

HVAC systems are designed to last for 15 to 20 years. During this time, FMs likely do their best to keep these systems running. But as an HVAC system ages, it can become inefficient and prone to breakdowns. However, when everything appears to be “working fine,” it can be quite challenging to convince landlords or upper management to approve the necessary budget for ongoing maintenance and periodic upgrades. Such a mindset often means that HVAC systems are only replaced after a major failure occurs, which leads to higher emergency repair costs, operational disruptions, lost productivity and sometimes lost inventory or research and development data.

Incentive programs are a key to unlocking upgrades funding

The good news is that there are a variety of incentive programs available to building owners and facility managers that can significantly offset the cost of HVAC system upgrades. These incentives include utility rebates, government programs, and federal funding opportunities, listed below. Navigating them can be arduous, however, and the application process requires careful planning and timing to maximize benefits.

1. Utility incentives: Many utility companies offer rebates for upgrading to energy-efficient HVAC systems. These rebates are often tied to specific energy-saving targets, such as reducing a building’s total energy consumption or improving system efficiency, mitigating the negative impact on the environment. These programs may be easier to access for smaller-scale projects.
2. Government programs: State government programs offer additional financial support for energy efficiency improvements, yet they also can be complicated to access and may require additional paperwork and property certifications. Still, such programs are an excellent resource for building owners seeking to lower energy consumption.
3. Federal programs: At the federal level, incentives such as tax credits and grants are available to encourage the adoption of energy-efficient technologies in commercial buildings. These programs are typically larger in scope and may cover a portion of the overall cost of a major HVAC system upgrade.

Application process considerations

The application process for these incentives is often complex. For the average commercial project, the approval timeline can range from three to six months. Therefore, if an HVAC system has failed or is near failure, FMs must weigh the time required to apply for these incentives against the urgency of the repair.

One of the best ways to navigate the incentive and rebate maze is to work with an independent service provider who understands which incentive programs are applicable to specific building types and system needs. A qualified service provider can streamline the selection and application process while also maximizing the financial benefit, something that is sure to please the C-Suite and property owners.

How much can incentives cover?

One of the principal factors influencing the decision to upgrade an HVAC system is cost. HVAC systems are inherently expensive, and the upfront capital required for a system replacement can be daunting. Incentive programs help mitigate this cost, but the exact amount awarded can vary widely depending on the program and the building type.

Incentive programs fall into the following categories:

• Prescriptive programs: These programs offer fixed rebates for specific types of HVAC upgrades, such as replacing a 15-ton unit with a higher-efficiency model. The rebate amount is usually fixed per ton of capacity, making it straightforward to calculate the incentive value.
• Custom programs: For larger or more complex projects, custom programs offer incentives based on energy savings or system performance improvements. These programs require a more detailed application process and often include energy audits or engineering analysis.
• Small Business direct install programs: For smaller businesses, many utilities offer direct install programs that cover a significant portion of the installation cost for energy-efficient HVAC systems. These programs are designed to be simple and accessible, allowing small businesses to improve energy efficiency without upfront costs.

While each program has unique metrics and value, building owners can expect to cover a portion of their HVAC system upgrade costs through these incentives. Additionally, low-interest financing options may be available to further ease the financial burden.

A strategic approach to HVAC upgrades

When approaching HVAC upgrades, it’s essential to consider not only the current state of the system but also the long-term maintenance and operational costs.  Building owners and FMs are best advised to take a strategic approach by focusing on whether incremental improvements are possible before undertaking a full system replacement.

Component life expectancy

HVAC systems consist of multiple components, each with a different life expectancy. For example, the motor that drives the fan may last much longer than the compressor that cools the refrigerant. Rather than waiting until the entire system fails, FMs can elect to make incremental improvements, such as adding a Variable Frequency Drive (VFD) to an aging motor to extend its lifespan by three to five years. These small upgrades can improve system efficiency while delaying the need for a complete system replacement.

Long-term planning and immediate needs

While short-term fixes can help keep an aging HVAC system running, building owners must also plan for long-term upgrades. Working with service providers that have the expertise to understand the intricacies of a building’s energy and mechanical systems can ensure that any investment in improvements optimally aligns with both immediate and future needs.

Becoming educated about all possible means to extend an HVAC system’s life expectancy and incentive programs that make repairs financially manageable while improving sustainability is critical for FMs who want to ensure smooth and timely budget approvals from their C-Suite team. Further, FMs may also assist management with efforts to persuade commercial landlords about how critical a high-functioning HVAC system is to their business productivity and profitability, a key consideration in real estate leasing decisions. 

While HVAC system upgrades may seem costly and challenging to implement, a combination of strategic planning, leveraging incentives, and making incremental improvements can help improve energy efficiency and sustainability, reduce costs and long-term energy expenses as well as avoid catastrophic system failures that ultimately cost far more than regular maintenance.

Ronald F. Raymond is the founder of RSE Energy Group, a fast-growing Northeast energy solutions provider serving an array of commercial clients, including real estate developers and property management firms, and the healthcare, hospitality, scientific, manufacturing, office, and retail sectors. He holds a Bachelor of Science degree in Mechanical Engineering from Tuskegee University and has completed NJIT’s Construction/Engineering Management Program and NYU’s SCPS Certification in Building HVAC Design. With over 20 years of experience, Raymond is a licensed professional contractor with expertise in mechanical and HVAC engineering, MEP project management, and energy system installation (ESI). RSE offers a comprehensive approach to evaluating MEP, air quality, energy infrastructure construction, engineering, and project management needs.

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ABM Performance Solutions is an innovative approach designed to optimize facility performance, focusing on delivering measurable results that benefit both the building and its occupants. Rather than simply providing passive, cost-centered facility management, ABM Performance Solutions introduces a proactive, customized, and data-driven model. This shift ensures that facility operations go beyond routine maintenance, helping organizations achieve their financial, operational, sustainability, and workplace experience goals. ABM Performance Solutions enhances uptime, output, and long-term efficiency — all with a single point of contact from ABM.

Proactive, outcome-driven facility management

ABM Performance Solutions provides a unified, cohesive team that puts outcomes first. This results in enhanced efficiency across all aspects of your facility. Whether it’s engineering, HVAC, power management, cleaning, landscaping, parking management, or building technology, ABM Performance Solutions integrates these services seamlessly, allowing businesses to reduce costs while improving productivity and sustainability.

ABM is more than a provider — we’re a strategic facility partner. With a wide array of offerings, ABM Performance Solutions ensures that your buildings operate smoothly, efficiently, and sustainably. Additionally, ABM focuses on occupant support, providing services that enhance employee and occupant satisfaction, health, and safety.

Customizable solutions for your facility

ABM Performance Solutions stands out by offering solutions tailored to meet the specific needs of each client. Understanding the unique risk profile and long-term goals of a facility allows ABM to create customized services that align with business priorities. By taking a consultative approach, ABM ensures that the solutions are relevant, efficient, and effective in achieving your goals.

Every facility is different, and ABM recognizes that a one-size-fits-all approach isn’t effective. Whether managing capital expenditures or optimizing energy systems, ABM integrates technical expertise and service flexibility to deliver the best outcomes. From microgrid infrastructure to vertical transportation systems, ABM Performance Solutions addresses every aspect of your building’s lifecycle.

The importance of data and technology in facility optimization

Technology is at the heart of ABM Performance Solutions. ABM utilizes predictive analytics, smart building capabilities, and IoT sensors to monitor and optimize facility systems in real time.

ABM Connect is the end-to-end platform that unites all of this. Data from the team member application flows directly into your client platform, allowing you transparency and connectivity into services from ABM. The information gives the operational leaders at ABM the power of data-driven decision making to ensure you benefit from continuous improvement.

This data-driven approach allows ABM to manage assets proactively, minimizing downtime and maximizing performance. Data transparency is key, and ABM provides actionable insights that help businesses track the performance of their facilities over time.

ABM Connect also includes visual dashboards that offer real-time data on everything from energy usage to occupant experience, enabling clients to optimize operations and meet sustainability targets. The integration of data helps organizations stay ahead of challenges, whether it’s energy conservation, carbon footprint reduction, or improving the facility’s environment.

Achieving sustainability goals

ABM Performance Solutions integrates sustainability into every aspect of facility management. To go beyond short-term fixes, ABM focuses on energy efficiency and reducing environmental impact over the long term — making your facility more sustainable.

ABM has already demonstrated success in sustainability initiatives, such as the installation of over 26,000 electric vehicle (EV) charging stations, reducing greenhouse gas emissions, and saving energy every step of the way. Sustainability programs from ABM also help clients meet their sustainability targets while improving indoor air quality for staff and occupants. This commitment to sustainability ensures that facilities not only perform well, but do so in an environmentally responsible way.

Measurable outcomes and cost savings

ABM Performance Solutions ensures that every service has a direct impact on the efficiency, cost-effectiveness, and sustainability of your building. This results in a positive financial impact, with businesses experiencing significant cost savings, reduced operational expenses, and improved ROI. With a single provider managing all services, ABM helps reduce the number of subcontractors and middleman fees, further driving down costs.

In addition to financial savings, ABM Performance Solutions helps businesses extend the life of their buildings and equipment by improving asset management and reducing the need for costly repairs or replacements. The proactive approach ensures that businesses can rely on their facilities without disruption, optimizing operations for greater productivity, profitability, and occupant well-being.

Simplified facility management

Managing a facility can be a complex and time-consuming task, especially when multiple subcontractors are involved. ABM Performance Solutions simplifies this by offering a single point of contact for all facility services. In fact, ABM will have an experienced team member on site — this streamlines communication, reduces administrative burdens, and enhances accountability. With one unified team overseeing all aspects of facility management, businesses can focus on their core operations while leaving facility optimization to the experts.

Future-proofing your facility

The ability to future-proof a facility is crucial as organizations navigate changing market conditions, shifting expectations, and evolving technology. ABM Performance Solutions supports businesses in adapting to these changes by providing forward-thinking solutions that anticipate future needs. Whether it’s upgrading HVAC systems for energy efficiency or preparing for increased occupant expectations, ABM helps you stay ahead of the curve.

Why ABM Performance Solutions?

ABM Performance Solutions offers a comprehensive, outcomes-driven approach to facility management. Whether you’re looking to reduce operational costs, meet sustainability goals, or enhance the workplace experience, ABM Performance Solutions provides the tools and expertise needed to achieve all these objectives—and more. With a customized, data-driven approach, ABM ensures that your facility performs at its best, now and in the future.

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