How Strategic Facility Maintenance Aids in Cost Savings

60 billion dollars – American healthcare facilities spend a staggering 60 billion dollars annually on facility maintenance. According to Statista, 75% of their survey respondents in the manufacturing industry allocate up to 40% of their budget for cleaning and maintenance operations.

These figures are enormous, and as long as raw materials, equipment, and labor costs continue to rise, maintenance expenses will also increase. This grim forecast is expected to impact all stakeholders — from facility managers and logistics teams to the end consumer, who might bear the increased costs.

However, facilities across sectors can take proactive steps to achieve cost savings in maintenance operations. In this post, we share some of the most common and easy-to-implement ideas to optimize maintenance budgets.

Cost Savings through Strategic Facility Maintenance — Start with these 5 Steps

Follow a Proactive, Scheduled Maintenance Plan

Scheduled maintenance, or preventive maintenance, is fundamental to cost-effective facility upkeep. It is a more hands-on approach to facility maintenance, where maintenance teams regularly perform routine maintenance tasks and inspections on equipment and systems rather than waiting for breakdowns. This proactive strategy yields many benefits, including ecological, operational, and work environment-related advantages.

When it comes to financial benefits, scheduled maintenance indirectly offers cost savings by extending equipment lifespan, preventing costly repairs, saving technician repair time, and minimizing machinery downtime to provide uninterrupted productivity. And while indirect, the effect is significant. According to the International Journal of Engineering Research and Technology, proactive organizations can cut maintenance costs by 25-30% by implementing such programs. 

Embrace Green Practices

With the corporate awareness of sustainability on the rise, the adoption of green practices in facility maintenance is becoming increasingly prevalent. At its core, sustainable facility maintenance prioritizes and promotes energy efficiency across all facility areas and maintenance tasks. From a financial standpoint, energy efficiency in its various forms translates into lower energy bills and utility costs, ultimately reducing overall operational expenses.

Some green tactics that you can apply in your facility today include:

• Upgrading lighting to energy-efficient LED or CFL bulbs
• Replace gas-powered vehicles with electric alternatives to transport machinery or personnel 
• Install dual-flush toilets to conserve water
• Incorporate solar panels 
• Utilize reusable cleaning items such as refillable spray bottles and microfiber cloths

Integrate AI Capabilities in Maintenance Routine

Leveraging AI revolutionizes facility maintenance by introducing cutting-edge technologies that transform traditional maintenance practices into proactive, data-driven strategies. For example, AI-powered systems can monitor and dynamically adjust ventilation, indoor air quality, and HVAC settings based on occupancy levels and environmental conditions, enabling optimized energy usage; AI-driven software can analyze equipment data to predict maintenance needs or alert on issues, allowing proactive repairs and minimizing downtime; AI-powered automation can streamline processes, enhance efficiency, and reduce human error.

All these features made possible by AI integration unlock substantial cost savings:

• Optimized energy usage cuts utility costs
• Top-shape machinery saves downtime costs 
• Ongoing preventive facility maintenance avoids costly repairs
• Automated routine tasks reduce labor costs
• Increased efficiency and reduced errors lead to long-term cost reductions

Replace Old Equipment

Aging equipment is a significant drain on industrial facilities’ budgets. According to Plant Engineering, aging machinery often leads to unscheduled downtime, forcing teams to address issues urgently and halting operations until a resolution is found. Sadly, a lack of understanding of new options and technologies leaves aging equipment the primary obstacle to improving maintenance practices.

Replacing obsolete machinery with modern, energy-efficient alternatives is a pivotal step towards cost savings. New equipment leverages advanced technologies geared towards energy efficiency, from heavy machinery to HVAC units, resulting in simplified maintenance and reduced operational costs. Indeed, reports from the U.S. Department of Energy reinforce that lighting retrofits can decrease lighting energy consumption by 50-75%, and HVAC system retrofits can result in 20% or higher energy savings. 

Consolidate Vendors

Outsourcing certain aspects of facility management, such as cleaning and maintenance, can be a cost-effective alternative to hiring in-house staff. In fact, 86% of facilities outsource some or all maintenance operations due to a lack of skills among current employees and insufficient resources to dedicate to maintenance tasks. However, the challenge arises when facilities fail to outsource strategically, namely, working with too many vendors or, even worse, not selecting facility maintenance providers carefully.

When it comes to cost savings, tackling these two issues can be a major game changer. First, vendor consolidation or bundling contracts saves valuable procurement and vendor management time and facilitates better negotiation power. The National Renewable Energy Laboratory (NREL) highlights that bundling utility contracts can reduce energy costs by 2%-10%. But more importantly, choose smartly. Choose a reliable and professional facility maintenance provider after researching their capabilities, track record, reputation, certifications, and approach to data and technology. Entrusting unqualified vendors will simply cost you later. 

US&S Can Help in Achieving Cost Savings

US&S has emerged as a trusted and professional facility maintenance partner. We set a benchmark in the industry with our comprehensive range of single-source solutions, compliance certifications, utilization of advanced technology like CleanTelligent, and dedication to employees’ and clients’ growth. 

Choosing US&S as your facility maintenance provider ensures you partner with a reliable ally that delivers outstanding outcomes, enhances efficiency, and enables cost-effective operations. Contact us today to discover our operation and maintenance services and experience the difference firsthand.