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Energy Consumption Declines While Costs Continue To Rise
Led by a dramatic increase in utility costs, the overall cost of running a
facility is 10 percent higher than it was just four years ago, according to
results from
an International Facility Management Association research report. The study,
Benchmarks V: Annual Facility Costs, shows that utility costs - which include
electricity, gasoline, fuel oil, steam water and sewage - have jumped 19 percent
compared to similar data from 2006.
While the increase in utility costs may come as no surprise to some, it is
happening at a time when energy consumption is down. When compared to IFMA’s
2006 benchmarking figures, average electricity consumption - measured in kBTUs
per
square foot - has dropped from 93 to 71, while gas consumption has remained
constant at 35 kBUTs per square foot. This decrease in energy usage could be
attributed
to companies implementing energy conservation practices, lighting improvements
and equipment upgrades at their facilities.
“
In recent years, many organizations have invested in their electrical and mechanical
systems to make them more energy efficient,” said IFMA Associate Director
of Research Shari Epstein. “Performing simple measures such as installing
occupancy sensors, adjusting heating and air conditioning controls and performing
preventive maintenance checks to keep equipment running efficiently can make
a measurable impact in reducing energy consumption.”
Based on a survey of 1,032 facility professionals from across North America,
the new report covers a variety of costs, including lease, maintenance, housekeeping,
security, environmental, recycling, waste disposal and space planning. The
costs are on an annual basis and are displayed as dollars per square foot.
Many of
the costs are further broken down by industry, facility type and geographic
region.
This year’s report reveals that expenses associated with environmental
initiatives are also starting to increase. For example, the cost of recycling
has doubled in the past four years. While facility managers today are spending
an average of 4 cents per square foot on recycling, they were spending 2 cents
per square foot in 2004, according to a previous IFMA benchmarking study.
“
In years past, organizations could generate a little income from recycling paper,
cans and cardboard materials,” Epstein said. “With the current
emphasis on sustainability, more organizations are stepping up their recycling
efforts
even though it comes at an increased operational cost.”
IFMA annually conducts a benchmarking survey of its members in an effort
to collect data that allows for easy comparisons of built environment costs
and
practices.
These reports allow facility professionals to gauge their performance against
similar facilities - whether in the same industry or a different one. This
year’s
report includes data from more than 1,000 facilities and is IFMA’s largest
study to date.
To order a copy visit www.ifma.org/tools/research/benchmarks_v.cfm.
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