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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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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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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Establishing an enterprise-wide BAS solution streamlines software and hardware solutions across its inventory for all new BAS installations and major modernizations of existing BAS.  A standardized approach will also streamline operations and maintenance contract support, and minimize training requirements by reducing the number of different systems across the portfolio.

In support of this effort, GSA issued a Class Brand Name Justification for the Niagara Framework manufactured by Tridium. GSA’s market research indicates that this enterprise solution is sold and serviced by nearly every major BAS manufacturer, as well as BAS service providers and vendors of all sizes. Both large BAS manufacturers and small business integrators can compete based on this enterprise standard. GSA also anticipates this enterprise-wide solution will help mitigate unnecessary labor and costs resulting from the remediation of disparate systems.

This enterprise BAS solution aligns to GSA’s mission to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and American people.

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NREL and Wells Fargo founded IN² in August 2014 with an initial focus on commercializing solutions that reduce the energy impact of commercial buildings, and later expanded its focus to advance technologies that address the sustainable production of agriculture and housing affordability. After 10 years of commercializing emerging clean technologies, IN² is launching the Scalable Tech Track, in collaboration with Overlay Build, to address demand-side market barriers and increase widespread adoption of cleantech solutions.

Sarah Derdowski, IN² program manager at NREL, stated:

Organizations are under increasing pressure to decarbonize, facing significant costs and reputational risks if they fail to act. Despite these pressures, many organizations still aren’t adopting clean technologies fast enough. The new Scalable Tech Track is designed to help organizations accelerate cleantech adoption and collaborate in an effort to address urgent climate challenges together.

The Scalable Tech Track supports both corporations and communities in the pursuit of sustainability goals by providing practical implementation guidance and access to validated technologies. IN² will assist participants with a comprehensive approach to cleantech adoption that includes identifying pain points, providing third-party validation from NREL, fostering collaborative peer working groups, and building clearer pathways for implementation, all while prioritizing equity and environmental justice.

The inaugural cohort is comprised of organizations from across the globe, spanning a variety of sectors and industries that share the common goal of decarbonizing the built environment through collaboration and innovation. The 10 companies and communities selected include:

• Avangrid: Interested in continuing to build a culture of innovation and scouting new technologies. Headquartered in Orange, Connecticut.
• CBRE: Focused on solutions that simplify complexity, improve efficiency, and accelerate the decarbonization of real estate portfolios at scale. Headquartered in Dallas, Texas.
• Coconino County: Will develop and implement a comprehensive school and district-based decarbonization plan to address climate change through mitigation. Located in north central Arizona.
• Digital Realty: Committed to reducing their power consumption and expanding their reach without expanding their carbon footprint through technology. Headquartered in Austin, Texas.
• Galvanize Climate Solutions: A first-of-its-kind sustainable real estate platform aiming to invest in well-located, high-quality real estate to reduce the property’s carbon footprint, improve cash flow, and increase asset values. Headquartered in San Francisco, California, and New York, New York.
• Intermountain Health: Strives to help people live the healthiest lives possible by providing high-quality and affordable healthcare while being a resilient health system with a large footprint and sustainability goals. Headquartered in Salt Lake City, Utah.
• Prime Data Centers: Seeks innovators that help create a world that thrives, where technology and sustainability advance together. Headquartered in Dallas, Texas.
• Schneider Electric: A global leader in electrification and digitization for smart buildings and data centers, looks to provide technologies to accelerate decarbonization in built environments. U.S. headquarters in Boston, Massachusetts.
• Southern Company: The leading provider of clean, safe, reliable, and affordable energy solutions for more than 9 million customers with a goal of net-zero greenhouse gas emissions by 2050. Headquartered in Atlanta, Georgia.
• The University of Colorado Boulder: Seeks to make its massive building footprint, both old and new, carbon neutral by no later than 2050.

The participating organizations will engage in a program from August to December 2024 consisting of virtual and in-person workshops, focused on how to implement new technologies in the built environment through digitization and change management. By the end of the program, the participants will have an in-depth strategy on how to uptake new innovation and compete to receive up to $250,000 to conduct pilot projects with IN² startups or others based on their specific needs.

More information about the startups that will be matched with each organization and the pilot projects will be announced in January 2025. IN² is currently accepting applications from cleantech startups ready for large-scale pilots with at least one year of post-revenue traction.

John Moon, senior vice president and sustainable philanthropy leader at Wells Fargo, said:

Wells Fargo is proud to support the expansion of the IN² program to advance cleantech adoption. We’ve learned firsthand how valuable the types of pilot programs that these organizations will undertake are by working with a number of startups in the IN² portfolio. The participating organizations will receive actionable steps and knowledge from the experts at NREL to support them as sustainability leaders in their respective industries.

To learn more about the Wells Fargo Innovation Incubator, visit the IN² website.

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The investments, impacting 49 states, the Commonwealth of Puerto Rico, U.S. Virgin Islands, and Washington, DC, will also help create jobs and accelerate progress toward achieving net-zero emissions in the federal building portfolio by 2045, and other goals of President Biden’s Federal Sustainability Plan.

GSA intends to enhance operations through granular controls, expand available reporting with more advanced metering sources, and optimize the operator experience through this IRA investment, including:

• Optimize federal building operations and energy use by installing approximately 1,000 new meters to measure  electricity, water and gas performance. These meters allow GSA to monitor the operations of the building, identify inefficiencies and take immediate steps to resolve them.
• Improve comfort level and building occupant experience in more than 70 federal buildings by installing smart sensors. GSA will measure indoor air and environmental quality, carbon dioxide levels and other conditions to adjust building operations based on real-time data.
• Make it easier for GSA to manage operations with real-time data through a new unified user interface for more than 150 federal buildings. This will consolidate information currently residing in separate applications to improve the work environment through more direct access to data about equipment operation, energy usage and sustainability performance.
• Implement “best-in-class HVAC controls” (based on ASHRAE Guideline 36) for approximately 15 buildings. This investment will reduce energy usage, greenhouse gas emissions and utility costs while increasing comfort for building occupants.

The Inflation Reduction Act includes $3.4 billion for GSA to build, modernize and maintain more sustainable and cost-efficient high-performance facilities. This funding includes $975 million specifically for emerging and sustainable technologies, and related sustainability and environmental programs, including this announcement. GSA’s Inflation Reduction Act projects will implement new technologies and accelerate GSA’s efforts in achieving a net-zero emissions federal building portfolio by 2045. Through these investments, GSA estimates that it could reduce carbon emissions by 2.3 million metric tons, the same amount that 500,000 gasoline-powered passenger vehicles produce each year.

This announcement is part of President Biden’s Investing in America agenda, focused on growing the American economy from the bottom up and the middle-out — from rebuilding our nation’s infrastructure, to creating a manufacturing and innovation boom to building a clean-energy economy that will combat climate change and make our communities more resilient.

Learn more about Inflation Reduction Act programs and projects at GSA.

GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing approximately $100 billion in products and services via federal contracts, and delivering technology services that serve millions of people across dozens of federal agencies.

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This Green Quadrant: Energy Management Software 2023 report assesses solutions on their ability to provide comprehensive end-to-end energy management functionality to users and reveals how vendors are enhancing their offerings through incorporating advanced analytics functionality and providing managed services to align with evolving customer needs. Among the software vendors featured in this Green Quadrant, eight firms — Bueno, EnergyCAP, Honeywell, Johnson Controls, MRI Software, Schneider Electric, Siemens and Spacewell — demonstrated market leading capability based on forward-looking criteria formulated by Verdantix.

The report, Green Quadrant: Energy Management Software 2023, provides valuable insights for real estate, facilities and sustainability executives seeking to manage energy consumption, costs and associated emissions. Key findings:

• Vendors are enriching solution functionality by embracing technological innovations such as AI-driven insights, agnostic connectors to existing building hardware and applications, and robust carbon management functionality. Example vendors pioneering these innovations include Carrier, Facilio and Schneider Electric.
• Solution providers are catering to buyers’ needs with a diverse range of business models. Whether bundled or separate, vendors now offer hardware, software and services as part of integrated offerings. For example, emerging models like equipment as a service (EaaS) from Johnson Controls, where equipment is loaned, are gaining traction.
• Impending carbon reporting regulations are driving buyers to increase their investment in energy management solutions to effectively manage operational expenditure, track and reduce carbon emissions, and optimize portfolio efficiency.
• Buyers are prioritizing solutions that are open and integration-rich, capable of seamlessly interfacing with existing buildings featuring diverse legacy equipment and a range of existing software applications. Vendors such as GridPoint and Siemens have developed highly legacy-compatible solutions, to cater to buyers with a range of equipment types and ages.

Harry Wilson, industry analyst at Verdantix, stated:

Business leaders, recognizing the climate and financial risks posed to building operations, are prioritizing energy management. The imperative to operate facilities efficiently and avoid resource wastage is driving executives towards advanced solutions. Vendors have responded to the market’s evolving needs by enhancing their offerings with deeper and richer functionality. The next five years will see a wave of innovation as established and new vendors alike leverage emerging technologies, such as advanced predictive AI and improved application and equipment connectors, to revolutionize functionality and capture market share.

For more information, purchase the full Green Quadrant: Energy Management Software 2023 report at Verdantix.

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AHR Expo’s endorsing associations contribute a thorough representation of the varying roles that make up the full industry. The report includes summary takeaways and common industry themes:

• Regulations remain a driving force towards a cleaner future: Decarbonization • Green transition • New standards with quicker onboarding • Global refrigerant transition
• The built environment is evolving:  IoT, AI and controls • Automation • Data analytics • Cybersecurity and BA systems
• Supply Chain: Supply Chain has rebounded to stable health • A2Ls and the effect on distribution • Consolidation across the industry
• Workforce and training: The need for a strong and skilled workforce • Streamline the flow of communication across the chain • Training evolution
• Product Adoption: Heat pumps • Building automation systems
• Expansion, growth and meeting demand: Managing multiple areas of growth within the industry • Educating first the workforce, and secondly the end user • Cutting-edge technology and environmental responsibility.

Points of view are provided from the following industry associations:

• AHRI * ASHRAE * ASHB * BACnet International * HARDI * HVAC Excellence * IAPMO/RPA * PHCC * RSES.

“The global refrigerant transition, led by the United States, is well underway, and will prove to be a seamless transition when all is said and done. Decarbonization has highlighted our industry as a solution to emission and energy use reductions,” says Stephen Yurek, president and CEO, AHRI, in regard to manufacturing trends.

Looking at the current state of HVACR, Ginger Scoggins, president, ASHRAE, says, “As the urgency of building decarbonization and the impact of climate change continue to drive change, the HVACR industry stands at the forefront of efforts to develop efficient, sustainable built environment solutions.”

Scoggins predicts major industry shifts: The HVACR industry has undergone transformative shifts, marked by a departure from conventional practices towards a future defined by innovation and sustainability. One of the most significant shifts is the industry’s pivot towards energy-efficient solutions in response to the escalating climate crisis. Another notable change is the growing emphasis on IAQ and occupant well-being, highlighting a broader recognition of the critical link between HVACR systems and human health.

On the same front, “Building Automation Control Systems are driving increased functionality, efficiency and cybersecurity in the industry. They are no longer something that can be deferred, because to ‘Future Proof’ a building it must first be ‘Now Proof’,” quips Andy McMillan, president and managing director, BACnet.

To review the perspectives of all industry associations, download the AHR 2024 Trend Report.

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To navigate this transitional period effectively, facilities managers must embrace innovative strategies and implement practical solutions. Here are seven energy efficiency tips tailored for the winter months to help FMs cut operational costs while contributing to greener processes and greater sustainability overall.

Optimize HVAC systems

Heating, ventilation and air-conditioning (HVAC) systems are often the largest energy consumers in a facility. Regular maintenance is the cornerstone of HVAC efficiency enhancement. This includes cleaning and replacing filters, checking outdoor damper positions, and clearing leaves and debris from outdoor equipment. These routine tasks significantly improve overall system efficiency, reduce repair and replacement costs, and extend the system’s lifespan.

In addition to maintenance, consider implementing temperature setbacks and using programmable thermostats. These measures allow you to reduce heating and cooling during off-hours or when spaces are unoccupied. This simple yet effective approach aligns HVAC operations with actual occupancy and usage patterns, resulting in substantial energy savings.

Check for leaks in windows and doors

Examine the seams of windows and exterior doors for possible air leaks. A simple hand test can do the trick. If you feel cold air or notice daylight seeping through gaps around the frames, it’s an indication of an air leak. Once you’ve located a leak, apply caulking, sealing or weather stripping to seal these openings. This prevents heat loss and ensures a more comfortable interior environment.

Inspect insulation

Insufficient insulation may lead to temperature disparities, causing thermostats to register lower temperatures than the actual conditions within the interior space. This misjudgment can inadvertently lead to overheating within the zone, needlessly consuming energy. Ensuring proper insulation is in place is essential for maintaining consistent temperatures and minimizing energy waste.

Verify thermostat or zone sensor placement

Avoid placing thermostats or zone sensors near appliances that generates heat to maintain accurate temperature regulation. Any source of warm or cool air near the thermostat can cause the unit to over- or under-condition the space, leading to excess unit runtime. You can use a handheld thermometer to compare readings near the thermostat and at the center of the room to confirm proper placement.

Switch to energy-efficient lighting

It’s essential to replace traditional lighting with LEDs wherever feasible, as they consume significantly less electricity and have longer lifespans. Implement a lighting schedule that aligns with natural daylight patterns, and adjust the schedule based on variations in sunrise and sunset times. This ensures that lighting is used efficiently.

Start a preventive maintenance schedule

Proactive HVAC maintenance is paramount for efficient and uninterrupted heating and cooling. Setting up a preventive maintenance schedule helps avoid unexpected system failures, especially during extreme weather conditions. Regular inspections and servicing allow for earlier detection and resolution of potential issues, ensuring that your HVAC system operates reliably when you need it most.

Educate your employees

Effective energy management within a business starts with employee engagement and awareness. Educate employees about why the energy management program is essential for your business, emphasizing its impact on sustainability and overall environmental responsibility. Make sure they understand their roles and whom to contact if there is an issue. Employee engagement can greatly enhance the success of your energy efficiency initiatives and foster a culture of sustainability within your organization.

As facility managers prepare for the winter season, they must be proactive in optimizing energy efficiency. By implementing these strategies, from HVAC system maintenance to insulation inspection, lighting upgrades and employee education, facility managers can significantly reduce operational costs and contribute to a more sustainable and environmentally responsible future.

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