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.

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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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The annual recognition was announced at the 2025 Green Schools Conference in Orlando in collaboration with the Green Schools National Network (GSNN). The Green Schools Conference is said to be the only event to unite everyone involved in creating and advocating for green schools. The two-day event provides a platform for the green schools community that inspires and facilitates the movement’s progress.

Anisa Heming, director at the Center for Green Schools, stated:

This year’s Best of Green Schools awardees are individuals and organizations dedicated to improving our schools and creating healthy and resilient learning environments. The awards are an opportunity to spotlight how anyone can make an impact in their community and support students and educators. We are grateful for all those who believe in our mission and join us in achieving it.

Ileana Albareda, executive director at the Green Schools National Network (GSNN), pointed out:

The 2025 Best of Green Schools honorees are proof that sustainability in education is not just a goal, it’s a movement. Their work is transforming schools into healthier, more resilient places for students to learn and thrive. They are part of a growing network of changemakers, and their leadership is inspiring others to take action, push boundaries, and create lasting impact.

This year’s Best of Green School winners represent some of the most engaged individuals and organizations in the green schools movement. In 2024, the Center for Green Schools reached over 600 unique individuals from over 350 school districts at its educational events. It published an online School Health Research Library and several new publications and briefings, including individual school health research highlights, a School District Indoor Air Quality Management Plan Toolkit and executive-level briefings on decarbonization and climate resilience planning.

The awards were presented to organizations or individuals that have worked to move green schools forward in eight categories. This year’s recipients are:

K-12 School: Rochester School

• The campus for Rochester School, in Colombia, was built in 2012 and was designed for sustainability, learning, and health. The school has achieved over 70% energy savings and 40% potable water savings compared to a conventionally-built school of the same size. The campus features a solar aquatic center, intelligent classroom hubs, and other campus features that serve as a living textbook for the curriculum. The school takes pride in graduating students who embody the principles of these innovative systems and contribute to the world’s sustainable future.

 Ambassador: Lauren Click   

• Lauren Click from Arizona is transforming food waste education in public schools. In 2024, Let’s Go Compost expanded from a single school to 111 public schools, 75% of which are Title I. Under her leadership, the nonprofit provides hands-on composting educational tools that make waste reduction education accessible and impactful for students nationwide.

School System: Denver Public Schools

• Denver Public Schools has worked on sustainability initiatives since 2009, focusing on environmental protection, economic prosperity, and social development. The DPS Sustainability Team approaches its work with bold action, innovation, and accountability while engaging students and staff in creating a livable future and thriving learning environments.

 Student Leader: Molly and Emma Weber

• Emma Weber and Molly Weber from Boulder, Colorado, spearheaded a local campaign for climate justice in their school district and later expanded to a statewide movement. They built a network of over 60 students in their school district, won a first-of-its-kind Green New Deal for Schools resolution through their school board, and are currently working with state senators and representatives to pass legislation. Their efforts have focused on implementing sustainable infrastructure, climate curriculum, climate disaster plans, and pathways to green jobs in public schools.

 Business Leader: Texas Disposal Systems 

• Eco Academy, an education program of Texas Disposal Systems, is designed to help minimize waste in Central Texas schools by educating K-12 students about trash, recycling and composting options on their campuses. The program provides training, curriculum, signage and other educational materials for staff, administrators, and students to make recycling fun and enable real-world application. Each school’s participation is documented, and diversion data is made available.

Policy Maker: U.S. Rep. Robert C. “Bobby” Scott and U.S. Senator Jack Reed 

• U.S. Rep. Bobby Scott (D-VA) and U.S. Sen. Jack Reed (D-RI) have been steadfast in supporting a federal role that ensures that high-need communities have resources to build and repair healthy, green schools for their students. They introduced the Rebuild America’s Schools Act, which, if passed, would invest $130 billion in school buildings. They have led the way for their colleagues for many years. In 2023, their offices were essential in funding a national clearinghouse for school infrastructure and a grant program to help states serve their school districts better.

  K-12 Educator: Erin Stutzman

• As an educator in the Boise School District, Erin empowers students through community outreach and project- and place-based learning, helping them use their voices to create meaningful change at local, state, and national levels. In collaboration with Nez Perce youth and tribal elders in Lapwai, Idaho, her students have had the opportunity to learn from Indigenous customs and build partnerships around shared environmental goals. Together, they have secured rooftop solar panels through grant writing, advocated for climate action in schools, and supported the nationally recognized Save Our T-Pack initiative to protect Idaho’s wolves.

School District Champion: Darien Clary

• Darien Clary, the director of sustainability at Austin Independent School District, has led efforts to integrate sustainability across 130 facilities, serving 73,000 students and 10,000 staff since 2016. Her work has influenced green building practices, renewable energy, and sustainable food systems, earning recognition in the New York Times and Forbes. She has also authored publications on whole-school sustainability.

For more information and links to individual recipients, visit 2025 Best of Green Schools.

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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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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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We have identified five major shifts emerging in 2025 that will reshape and simplify building management. The facility management industry is maturing into a strategic cornerstone for operations, and these trends will showcase how the role will address cybersecurity, labor shortages, sustainability, compliance, and energy efficiency.

Increased facility cybersecurity through collaboration with IT and digital partners 

Cybercrime increased by 75% in 2024 and is expected to continue rising in 2025. Increasingly sophisticated cyber criminals are looking for any way to access the systems of corporations and infrastructure providers. Breaches can range from ransom attacks targeting corporate operations to more critical attempts to infiltrate payment and financial systems. 

Facility managers working with IT to prioritize digital security will protect their operations. Implementing secure-by-design systems limits access by layering security measures, timely software updates, and isolating operational technology from broader networks. Keeping software up-to-date will be essential to combat these risks. This includes ensuring patches are up to date on all IoT edge devices and critical building infrastructure systems such as HVAC, lighting, access control systems, and other equipment that might not traditionally be considered inviting to hackers. 

Labor gaps will lead to consolidation, outsourcing and technology adoption

While facilities management is vital, the industry is experiencing a significant labor challenge. This gap is expected to widen further as fewer young people enter the field, putting more pressure on the already strained workforce, which is retiring in large numbers​.

Adopting smart energy initiatives to attract tenants 

Managing energy resources wisely, whether turning to renewable sources or adopting technology that allocates energy to address real-time conditions, can also be a selling point for office spaces. Research shows that employees in green offices are 15% more productive, which has heightened the demand for eco-conscious workplaces. In addition to contributing to environmentally friendly goals, 69% of people prioritize working in greener environments, pushing the demand for organizations to seek more eco-friendly office spaces. 

In response, building owners will continue investing in upgrades beyond traditional improvements. From innovative building technologies that enhance energy efficiency, like intelligent lighting, to renewable energy installations, such as solar panels, these features will help attract tenants to office spaces that are up for lease. These sustainable upgrades reduce the environmental footprint and create a more productive and attractive work environment. Office buildings that embrace energy-efficient systems and eco-friendly designs will become desirable for tenants seeking long-term, cost-effective solutions.

Navigating and complying with new regulations

2025 will bring many new climate regulations for buildings globally. While larger sustainability teams may have the resources to stay ahead of these requirements, smaller teams could struggle to balance operations while working to understand unclear regulatory demands. Surveys show that only 25% of organizations are ready for upcoming regulations and reporting. 

Many building owners are navigating the uncertain landscape of upcoming regulations. Understanding and implementing strategies to meet compliance will take up more of the facilities and energy teams’ limited time. However, those who seek technological solutions that support energy reporting demands will be in a better position to handle any changes in the regulatory climate. Being proactive will allow teams to benefit from the efficiencies and lower costs of software designed to track and manage energy costs. 

Preparing for the potential of rapidly increasing energy costs 

The reality of digitalization drives the increasing need for global data centers worldwide. This surge draws increasing attention to their energy consumption and carbon impact, pressing the adoption of more sustainable solutions.

In response, facility managers are consolidating resources and increasingly outsourcing key functions to manage day-to-day operations effectively​. However, despite these strategies, the gap in skilled labor combined with rising demand calls for rethinking traditional operations. Industry leaders recognize the importance of investing in comprehensive training programs to develop the next generation of professionals. Like many labor problems throughout history, people will need technology to help close the gap. Leaders in outsourced operations will embrace new technology to empower the few to do more.

The heightened energy usage has already prompted a shift towards innovations like hybrid cooling systems and AI-integrated infrastructure, which will continue to evolve in 2025​. These advancements will take center stage as industry leaders recognize the critical need to align data center growth with sustainable energy practices.

As a result, building owners and facility managers may see their energy costs increase, and it will continue to be essential to maintain efficient operations through the use of traditional sustainability solutions as well as software solutions. As we move through 2025, cybersecurity, labor shortages, sustainability, increasing regulation, and the need to reduce energy consumption will be at the top of everyone’s priority list. 

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Rheem CEO Chris Peel, joined by hundreds of the company’s customers, partners, and employees, kicked off this major milestone event at the AHR Expo by unveiling Rheem’s newly launched brand evolution, “Engineered for Life.” Synonymous with remarkable, reliable and resilient products designed for everyday life, the branding update reflects Rheem’s 100-year legacy. With more than 500 active patents, in addition to revolutionary products, Rheem is known for a century of strong, meaningful collaboration with customers and partners.

At the show, Rheem also hosted a number of on-trend discussions within the booth from commercial advancements and engineering for new regulations to the latest on heat pumps and decarbonization. Visitors to the booth learned about Rheem’s sustainability achievements, including attaining zero-waste-to-landfill status and training more than 600,000 plumbers, contractors, and key influencers on sustainable products and practices.

Rheem representatives also featured in two educational panel sessions:

• The Wide World of HVAC/R: New Motivations, EPA Regulations and Mapping the Path Forward: Rheem’s Vice President of Government Affairs Karen Meyers delved into future predictions of HVAC/R.
• Understanding Business Opportunities Based on Your Region: Rheem’s Vice President of Residential Business Development, U.S. Air Conditioning, Randy Roberts shared perspectives on the push surrounding multi-trade contracting for businesses in North America.

Products on display included:

Rheem Heating & Cooling:

• Residential:
  • Rheem Endeavor Line Prestige Series Universal Heat Pump (RD18AY)
  • Rheem Endeavor Prestige Series Gas Furnace (R98MV)
  • Rheem Classic Plus iR Packaged Gas Electric (RGEAYC)
• Commercial:
  • Rheem Renaissance Packaged Units

Rheem Water Heating:

• Residential:
  • Rheem ProTerra Hybrid Electric Heat Pump Water Heater
  • Rheem 50-Gallon Maximus Condensing Tank Water Heater
  • Rheem IKONIC Condensing Tankless Gas Water Heater
• Commercial:
  • Rheem IKONIC Commercial Tankless
  • Rheem Triton Family

Eemax:

• Eemax LavAdvantage
• Eemax Accumix II Cutaway

Friedrich:

• Residential:
  • Friedrich Floating Air Ductless Mini-Split
  • Friedrich Breeze Universal Heat Pumps
• Commercial/Hospitality:
  • Friedrich FreshAire PTAC
  • Friedrich Vert-I-Pak

HTPG:

• HTPG EcoNet Enabled Unit Coolers

IBC:

• IBC SFC Superflow Combi
• IBC SFT Superflow Tankless
• IBC Superflow High Efficiency Condensing Boiler

Nordyne:

• Intertherm
  • Intertherm E7 Series Electric Furnace
• Maytag
  • Maytag M1200 Series High-Efficiency Heat Pump

Raypak:

• Raypak XVers + KŌR

For more information on Rheem HVAC/R products, and to learn more about the centennial celebration, visit Rheem.

Founded in 1925, Rheem Manufacturing delivers innovative products that save energy and support a more sustainable future for heating, cooling, water heating, pool and spa heating, and commercial refrigeration products and solutions. Paloma Co., Ltd., of Nagoya, Japan, acquired the iconic Rheem brand in 1988, and today the company’s portfolio of premium brands include Rheem, Ruud, Friedrich, Raypak, Nordyne, Sure Comfort, WeatherKing, Eemax, Richmond, IBC, Intergas, Splendid, Solahart, EverHot, and MHG, as well as commercial refrigeration brands Russell, Witt, ColdZone and Kramer, which are part of the Heat Transfer Products Group (HTPG) division.

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According to the International Facility Management Association (IFMA), FM has become “data-driven,” and new AI-powered technology offers “enormous potential” for the future of the industry. And not a moment too soon, as FM professionals continue to be challenged by budget constraints, staff shortages, and an ongoing focus on making their buildings and facilities more sustainable. The sheer pace of all this change can be dizzying, and top of mind for FM leadership headed into next year will be how to turn AI’s theoretical promise into tangible solutions.

5 ways AI can empower FM professionals

Here are 5 powerful ways FM professionals can use AI to drive value and transformation in the industry:

1. Integrate AI with IoT to generate data-driven insights and power predictive maintenance

The Internet of Things (IoT) represents a network of interconnected sensors that capture data and help provide insights that improve decision-making, especially when it comes to the future health of various assets. As Deloitte explains, FM professionals can use IoT devices to gather data from multiple sources (remote diagnostic tools, historic performance, field reports, etc.) and conduct AI-enabled analysis to understand their network more deeply. Other research from Deloitte indicates that implementing IoT for predictive maintenance and asset monitoring leads to a 20–30% reduction in maintenance costs. By getting ahead of problems before they arise, facility managers can better direct resources and reduce unnecessary repairs.

FM Pro Tip: Start with a pilot program focusing on critical equipment to demonstrate quick wins. Then, once ROI is proven, gradually expand to other areas.

2. Deploy an AI-driven field service management (FSM) system that can automatically assign technicians to tasks based on multiple variables

Historically, assigning field service technicians has been a manual process prone to human error. When techs don’t have time to finish a job it can quickly tank productivity across the board, leading to employee burnout and frustrated customers. But with AI, field service techs can be autonomously dispatched based on real-time data, preferences, and proximity, thereby optimizing routes and reducing inefficiency costs. Recent research shows that 80% of high-performing field service teams use AI, and that automation can significantly increase employee/customer satisfaction scores.

FM Pro Tip: Use your FSM solution to dispatch in a small department or region first to test-and-learn how AI-assigned technicians compare to your current back-office operations.

3. Infuse AI into CRM systems to create a 360-degree view of each customer

 As customer expectations continue to evolve, there is far less tolerance nowadays for downtime. To get more proactive, FM professionals use AI to analyze their CRM data to uncover usage patterns, track reporting on equipment health, and create a bespoke customer profile that triggers preemptive service notifications. When customers don’t have to initiate contact, service teams spend less time on conflict resolution and more time building relationships. According to Forrester, customer-obsessed organizations reported 41% faster revenue growth, 49% faster profit growth, and 51% better customer retention than those who aren’t customer-obsessed.

FM Pro Tip: To help convince leadership to infuse AI into CRM, explain how customer service teams can scale faster by handling more issues, without sacrificing the quality of care.

4. Introduce AI-powered training programs to upskill technicians continuously and encourage professional growth

Given the myriad issues that could go wrong with a building at any moment, retaining employees with institutional knowledge is a big priority for facility managers. Studies have shown that it’s far more cost-effective to upskill current employees than to hire/onboard new talent, and AI can help level up technicians by providing critical on-the-job training. On average, teaching an employee a new skill is one-third of the cost of onboarding a new employee, according to the same research. Techs can also receive AI-driven feedback after completing assignments, helping to foster continuous improvement and boost morale.

FM Pro Tip: Implement short, targeted AI-driven training modules technicians can complete on company time. This allows them to learn specific skills as needed, keeping their knowledge current while minimizing disruption to their daily tasks.

5. Analyze energy usage patterns with AI to reduce environmental impact

This year, the Department of Energy released a comprehensive plan to reduce greenhouse gas (GHG) emissions from buildings by 65% by 2035 and 90% by 2050. Given this new imperative, FM professionals are rapidly updating their building information modeling (BIM) with AI-powered tools for a more comprehensive view of their sustainability targets, helping further reduce waste, decrease energy consumption, and optimize operations.

FM Pro Tip: Implement small, data-backed changes to your energy usage in different departments to see if there is a direct impact on output and overall cost.

Unlocking the value of AI

AI integration is crucial for boosting efficiency and sustainability in facilities management. It is not just a trend; it’s a transformative shift that enables professionals to anticipate needs and streamline operations.

As you explore these strategies, consider how each AI application can be tailored to your unique environment. The path to effective AI adoption begins with a commitment to continuous improvement and a willingness to innovate. By investing in these technologies today, you are not only enhancing your operations but ensuring that you are equipped to meet tomorrow’s demands.

About the author

Anand Subbaraj is the CEO and co-founder of Zuper, a provider of solutions designed to modernize and scale forward-looking field service businesses. With more than 17 years of experience in technology, including 13 years at Microsoft, Anand is an expert in big data, cloud computing, and SaaS. He is committed to pushing the field service industry forward through the use of intelligent automation and by staying connected with customers to understand and solve their most pressing challenges.

The post Building value: 5 ways AI is transforming facilities management appeared first on FMLink.

Sponsored by DOE’s Building Technologies Office (BTO), the prize is advancing novel solutions for upgrading inefficient commercial and high-rise residential building windows to enable equitable decarbonization and optimize building envelopes for electrification. Secondary glazing involves installing an additional windowpane on an existing window to improve insulation while minimizing cost and disruption.

Hayes Jones, acting director of BTO, said:

About 40% of commercial buildings have single-pane windows, which provide a thinner barrier between the occupant and the outside than multipaned systems. This means higher energy costs and unwanted outside noise compared with multipaned windows. Despite that, less than 1% of windows are replaced annually because of high cost and occupant disturbance. Secondary glazing systems offer a less disruptive, more affordable opportunity to increase efficiency and indoor comfort than full window replacement.

The prize offers $2.1 million across three phases to incentivize rapid development and deployment of cost-effective secondary glazing system (SGS) solutions through a combination of lower costs, more flexible applications, and improved performance.

According to DOE’s Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector (PDF), “to meet the 2050 vision of a highly efficient, net-zero emissions building sector, the retrofit rate for commercial building envelope components would need to increase up to 25x by 2030.” The prize will enable faster and more affordable building envelope upgrades.

In Phase 1, competitors submitted design concepts of their SGS innovations and shared early data on performance metrics. Seven winning teams received $50,000 each for their innovative, market-ready solutions.

The Phase 1 semifinalists are:

• AeroShield Materials Inc. (Waltham, MA) shared a design using advanced materials with significant potential for advancing the state-of-the-art performance of SGS with broad applicability across a variety of systems.
• Alpen High Performance Products (Louisville, CO) developed a project focused on reducing the costs of an existing on-site manufactured product that scales price with performance. Alpen’s SGS solution is low cost and high performance with short installation times.
• EnvisionWall (Flushing, NY) designed a cost-effective, quick retrofit option designed for installation over windows that can and cannot open.
• Indow (Portland, OR) created a design concept incorporating vacuum-insulated glazing within an SGS frame. Indow’s design offers the possibility of improved thermal performance in a product that can be installed easily and quickly.
• Thermalswitch Building Envelope Extension by StudioTJOA Inc. (Erie, CO) devised a product that accounts for different performance levels and climates, with advanced thermal performance and a simple design.
• Team QUANTA 3.0 (Lancaster, PA) evolved its design model to combine vacuum-insulated glazing with shade control in an innovative solution that boasts variety in applications and levels of performance.
• WexEnergy (Rochester, NY) conceived a unique product that provides a solution for operable windows with lower initial costs, quick installation, and short payback periods.

These seven solutions are innovating a retrofit technique that does not require opening walls to increase building energy efficiency while reducing installation time and cost. The winning teams will now proceed to Phase 2, in which they will produce window unit prototypes. Phase 2 winners will proceed to Phase 3, where they will transform their prototypes into a commercially viable, technically credible product that can be used in real-world applications.

Commercialization plans in Phase 3 will include implementation of an equity-focused pilot project in low-income multifamily or underserved public sector buildings. These pilots will help improve occupant comfort and energy performance in high-rise residential buildings and align with DOE’s Affordable Home Energy Shot, which aims to reduce the up-front cost of upgrading a home by at least 50% while reducing energy bills by 20% within a decade.

Read more about the Building Envelope Innovation Prize semifinalists and explore all of BTO’s open funding opportunities at DOE.

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