BuildingAdvice was formed as an offshoot of AirAdvice, a company founded in 1999 to address IAQ issues in the built environment. Established in 2008 as a division, BuildingAdvice’s mission was, and continues to be, enabling the mechanical contracting, control and ESCO industries to partner with clients to measurably reduce their facilities’ operating costs and carbon footprint through software automation. Working through our channel we have gained valuable experience in thousands of buildings throughout North America and intend share our experience through this blog.
So why, 11 years ago, did we select these industries to deliver our vision?
As the graphic below depicts, per the Environmental Protection Agency (EPA) and BOMA’s 2016 EER Study, the single largest controllable operating cost in a commercial building is energy comprising approximately 30% of the controllable operating budget.
Based on the EIA’s 2012 Commercial Building Energy Consumption Survey, mechanical systems consume up to 44% of the energy used in a commercial facility. If you add lighting to the mix, it bumps the total to 54%. These are BIG numbers; relatively large portions of budgets so pay attention! While these are national averages, these percentages will vary based on climate, building type and individual building results.
So, the systems our industries install, maintain, operate and repair are the biggest consumers of energy in commercial buildings as documented by CBECS. The corollary to this is that these same systems may also be the biggest source of energy waste and potential savings opportunities.
Who better to address these sources of waste than competent service providers in our industry? And what better vehicle to continuously improve building performance than a Preventative Maintenance program that delivers comfort while simultaneously reducing operating costs, extends equipment life and eliminates productivity impacting failures?
Savvy Mechanical and Controls Contractors are incorporating building data measurement into their programs to address this unmet need. By using client building data to identify waste, correct it through service programs, and then track the impact on energy and other budgets, they are reframing their traditional service program from a cost center to an investment that generates a measurable return. These are differentiated services that drive higher margins.
So, who is best positioned to measurably reduce a commercial building’s operating costs? A competent mechanical or controls contractor whose goals, programs and employees are committed to measurably reducing building operating costs.
This blog will explore many of the challenges and opportunities this market opportunity presents to all of us and how to start or optimize your business model in your market. We’ll be looking at business strategy, sales and marketing, operations and engineering disciplines and how to transition from start up to a scalable revenue model while minimizing up front investment.