Facility services trends: More with less
Do more with less. That’s an overall trend in retail facilities services, where retailers have less resources to run their properties even as they come under pressure to increase service levels while also reducing costs. Chain Store Age spoke with Ferrandino & Son’s John Haley, director of HVAC programs; Dave Magill, VP program management; and Kevin Smith, COO, about reduced resources and other trends in facilities management.
How can retail facility managers deliver on what’s being expected of them?
To even attempt to achieve their goals, many retailers have to look at their programs differently. Reduction in spend is often not a reduction in service but a modification of how they view the asset to reduce long-term spend. To accomplish this, an aggressive approach in asset management, be it HVAC units or landscaping, can often result in a change in which their service programs are implemented and executed.
However, this means partnering with vendors that can do more than just service their sites. Solutions around robust technology to manage the assets and a partner that can take ownership of larger footprints allow for scalability of the savings across a larger spend.
What about specific lighting and HVAC trends?
We have seen a movement toward scheduled lighting programs as opposed to on-demand services. Retailers like the ability to set their annual lighting budget as much as possible, so many programs are designed to set a per-store fixed fee, which includes material and labor. The scheduled maintenance also ensures that the store lighting is maintained at 100% lit. Current trends indicate that retailers are looking for monthly or bi-monthly maintenance for interior lighting and quarterly maintenance for exterior lighting.
Scheduled re-lamping programs are also gaining favor. For sites with traditional fluorescent HID lighting, re-lamping may take place every two to five years. Newer LED lamps have a far greater life cycle.
With a re-lamping program in place, a retailer is ensured that the majority of lamps will remain lit with minimal maintenance. This also provides the ability to certify installation dates with lamp manufacturers, making for a more simplistic warranty tracking process.
In HVAC, R22 refrigerant has been a hot topic over the past few months, as the EPA has announced the final phase-down schedule regarding production and importation of the R22 refrigerant. R22 production will be reduced over the next five years and will no longer be in production after 2020, most likely causing an increase in price for R22. This will inevitably increase any type of service or repair to an HVAC system that requires adding R22. This could become a major factor in how future decisions will be made between repairing an aging rooftop unit and replacing it with a newer unit that uses one of the R22 replacements, such as R410a.
Are retailers still pursuing lighting updates?
The charge for creating energy efficiencies continues to compel retailers to move toward retrofitting to LED fixtures. In the last couple of years, the cost of LED fixtures has fallen more in line with conventional lighting, fueling much faster ROIs than realized in previous years. Many of these fixtures come with a rated life of 50,000 hours and warranties of five years, leading reduced maintenance costs. These projects can reduce energy consumption for lighting by as much as 75%, so combined with the reduction in maintenance costs, operating budgets can be significantly reduced.
How can retailers best maximize their HVAC investment?
The best way to maximize any HVAC capital investment is to make sure the systems are working as the manufacturer intended. A thorough maintenance program designed specifically for the system will keep the unit running properly and reduce the likelihood of unwanted service issues.
Too many times systems are installed and not maintained for the first 12 months as the mentality of ‘they are new’ is followed. This will certainly shorten the life expectancy of the asset, while increasing the operating cost. When a new system is purchased, it should include a discussion on how the system will be maintained and when. Proper maintenance from day one will help that asset achieve a full life.
Give us an overview of the services Ferrandino & Son offers customers.
Ferrandino & Son partners with retailers at a national level to develop sustainable facility programs that deliver cost-effective solutions while maintaining customer brand expectations. Our service offerings include both scheduled and reactive programs for HVAC, lighting, painting, capital projects, plumbing, electrical, handyman, landscaping and snow removal.
What differentiates Ferrandino & Son?
For us, the differentiator is the investment in our most valuable resource — our people. They are what have allowed us to achieve consistent and astounding growth over the years. We have made it our mission to hire talented, experienced people, giving them the tools and resources they need to succeed. We then create and maintain an environment that breeds more success.