Impact of inflation on Facilities Management in 2023
Inflation burdens Facility Management
Facility managers are accountable for the upkeep of the physical infrastructure of an organization. Inflation rises the tool costs, energy expenses, and services in general. It will have a significant impact on facilities management this year.
Facility management is a multi-faceted discipline with four major cost inputs:
1. Labor
2. Materials & Supplies
3. Energy
4. Government Policies and Taxes
Facility Management 2023 Budget
Facility managers need to have a forethought of the implications of inflation on facility management discipline. They need to foresee the increase in prices of utility operations, labor, spares, etc., and factor them into the annual budget to maintain the same quality of services as before. But will this go well with facility owners?
As the world economy continues to recover from the aftermath effects of the pandemic, the negative impact of the long war between Russia and Ukraine, widespread economic dullness, etc., business owners do not wish to stretch maintenance funds. Hence facility managers need to accomplish more within a limited budget. Many facility managers have overcome this challenge by resorting to the digital transformation of the facility management sphere.
Rising input costs
Given the multi-faceted nature of Facility Management and as budget planning for the calendar year is already underway, senior management needs to consider the rising cost of labor for both Hard services(e.g., electrical, plumbing, and HVAC) and Soft services (e.g., security, waste management, cleaning, catering, etc.)
Prices of diesel used for Genset have gone up in many countries. Commercial gas cylinder prices have also increased to record-high rates. The uptick in fuel prices has triggered a rise in the transportation cost of goods and raw materials.
Governments have revised electricity tariff and commercial taxes, citing the deficit in financial position of the Centre & states. All these factors hurt the bottom lines of many businesses. The burden is passed on to facility managers as well.
Trending Digitization of Facility Management
Business leaders have realized Digitalisation is the unavoidable future of the Facility Management industry. The inflation has pronounced it more. A sizeable percentage of large and mid-size enterprises have already linked buildings, assets, sensors, and workforce with a cloud-based Facility Management software for tapping into new avenues of cost savings and flawless rolling of facility functions with no interruption to core businesses.
Facility Management services have evolved significantly over the years to connect people and assets attached to scattered businesses and locations using intelligent analytical platforms. The team can smartly and centrally manage the system via web or mobile utilizing the Internet of Things (IoT), Cloud, and Artificial Intelligence (AI)-based technologies.
Facility Management Expert opinion
Ralf Zerenner, managing director at Berkeley Services, an organization with a headcount of 7000+ employees, opines that these solutions will undoubtedly step up operational efficiencies, preserve staff welfare, sustainability, and will present opportunities for progressive Facility Management companies. He adds that cost and margins have become a huge concern for all FM companies and emphasizes that FM companies have to adopt out-of-the-box strategies to win contracts.
C-level executives view on the Facility Management market
Dilip Khatwani, the CEO of Reliance Facility Management, says: “FM managers are well aware of international inflationary pressures and hence need to understand how those factors will impact facilities management costs in 2023 and further. Successful management of these costs will be the key challenge over the next year without passing it to the clients.”
Oliver Sawle, general manager of Khansaheb Facilities Management, wants to demonstrate to customers that FM is considered a value-added service rather than an undervalued commodity. He is optimistic and expects the market to continue to be growth-oriented as the economy and customers are still recovering from the undesirable effects of the pandemic.
How FSM software helps combat inflation?
It is essential to procure high-quality products on time from a trusted vendor at the best prices. A FMS/EAM eases purchase via an online portal by providing easier comparison of quotes or sale orders. Such a software can help optimize workflows and enable technicians to complete more jobs within the same duration they did using manual approaches, reducing the need for labor. This is one among multiple ways facility managers can mitigate the effects of inflation on their bottom line using a digital solution for maintenance management.
Green buildings
Competent Facility Management Software provides a means to suppress electricity expenses-the highest utility costs of any business. Using InnoMaint, you can view instant insights into the current consumption pattern of individual tenants in a building or entire facility. With this proactive approach, you can initiate remedial measures and not be shocked by electricity bills. It is high time to think about going green by reducing carbon emissions to successfully ride the waves of inflation and settle back to a pre-pandemic norm until early 2024.
Market Forecast for 2021 – 2026 by world’s largest revenue impact company
Facility management(FM) is a set of functions that can enhance the value of specific organizational processes. Markets and Markets, a research firm providing quantified B2B research headquartered in Pune, India, and having an office in the USA currently holding 80% of global Fortune 1000 companies, as clients, has published the results of its laborious forecast. It reveals a promising upcoming silent revolution in the global facility management market. According to the survey, the Facility Management(FM) Market presently valued at 42.2 US$ is projected to grow at a CAGR of 1.6% to reach 76.3 US $ in 2026.
InnoMaint adjudged to be a major vendor in the market
In the painstaking process, Markets & Markets arrived at the profiles of key players cutting across geographic boundaries comprehensively by scrutinizing their features, market rankings, core competencies, global presence, etc. The revenue figures were sourced from annual reports of companies. It had access to the latest financial information of key vendors in the context of FM until 2020-21. It adjudged InnoMaint as a major vendor in both Facility Management Software 2021 and Enterprise Asset Maintenance Software 2021 categories.
Tap into the booming Facility Management market by subscribing to Innomaint which is a one-stop CAFM solution for all your Facility Management needs including
A practicable alternative to traditional approaches paving for effective communication on work orders
Quicker and easier audits on maintenance to identify areas of improvement and training requirements
Ability to catch up with maintenance teams while on the move 24×7 and assign tickets based on the current workload of technicians & quicker dispatch of technicians based on Geo-Fencing
Greater visibility into operations for better technician engagement
Deeper cost-cutting on capital expenditure, utility & service expenditure, etc and much more…
Facility Management Market Forecast – The efforts behind
The need for a Facility Management System is more pronounced over time. The entire globe suffered a 4% decrease in GDP, on average. The effect of the pandemic spillover is felt in countries not hard hit by the pandemic as well. The world economy is expected to recover steadily by the end of 2021 but the process will take longer for U.S, Germany, Italy, England & Russia.
Markets & Markets have defined, described, and forecasted the trend in the Facility Management market by component, size of the organization, industry vertical, deployment mode & region. It analyzed opportunities in the market and outlined the competitive landscape for key stakeholders and market leaders.
The B2B software review firm considered five regions across the globe where the FM market was ruling. They were North America, Asia Pacific, Middle East, Europe, Africa & Latin America. It also took into account the marked impact of the pandemic on the FM market. These regions consist of developed countries with well-established infrastructure, which generates huge demand for facility management solutions.
Markets & Markets perceived growth in trend of outsourcing facility management operations. On the Demand front, it interviewed Chief Executive Officers, Chief Operating Officers of MNC’s etc. On the Supply-side, it interviewed Chief Executive Officers and Co-founders of Key Companies. The research organization consulted FM associations such as
Facility Management Association of Australia
Japan Facility Management Association
Facility Management Association of India (FMAI)
Revolution in Facility Management
The growth of the facility management market can be attributed to several revolutionary technologies and concepts such as cognitive computing, augmented reality, virtual reality, IoT and analytics, robots, etc into facility management solutions.
The proliferation of technology along with intelligent software solutions in businesses is a major driving force to the growth of the facility management market. The fact that IT spending has increased considerably in the last 5 years stands as a testimony to this statement. The future demand in the IT and Telecom vertical would be due to demographic and economic factors.
Digital Solution to Facility Management
A Facility Manager automates and simplifies routine planned preventive maintenance to avert any unexpected failure. He also automates predictive maintenance to keep a check on service expenses and frequency of services. In the event of a breakdown, he rises up to the occasion for coordinating the team efforts to make the communication clear and effective driving and tracking the work orders till completion.
He aligns the workforce for constant knowledge sharing and keeps them up-to-date with technological advancements. He streamlines maintenance by keeping your equipment status and maintenance records in an easy-to-use system.
The more consistent an organization’s day-to-day operations are, then the easier it will be to maximize efficiency and productivity. In turn, these changes can lead to improved customer satisfaction, lower costs, and less waste.
The ray of hope in the long-term outlook for Facility Management
Facility management has been evolving as a thriving business that continues to grow across verticals pushing aside the economic setbacks triggered by the pandemic. Enterprises have started realizing that FM can no more be looked down upon as a set of back-office activities. They are of the notion that their organization can achieve success and steady growth only through the efficient and effective management of complex operational business processes in their facilities.
With the growing receptivity to technological advancements, it is no wonder that Facility Management Solutions are in a high demand in the I.T, Telecom & Health Care Sectors to meet regulatory requirements and sustain critical projects and life saving procedures. Facility Management, these days, has extended its scope to cover numerous business functions and processes and hence the complexity. But the sophistication should come with simplicity to end-users. InnoMaint has modeled its CAFM solution around this core concept to evolve and update itself to meet the challenges of today and tomorrow !
Dubai 2040 Mega Urban Plan for boosting FM industry
Going by the estimate, the manpower requirement for Facility services will be around 3,00,000 to sustain the plan.
The 2040 mega-urban master plan has a great scope to play in the coming years with its exclusive strategic announcements which in turn shall play a key role in the booming resurgent economy after the uncertainties of the pandemic which brought us down.
Facility Management role in enhancing comfort
The Facility Management role in the vision of manufacturing, tourism, housing and other fields shows an evolving & promising role. The Facility Management sector role in these developments will be a pivotal one and be indispensable for enhancing the comfort of inmates and visitors of the facility.
Facility Management’s contribution for ‘Go-Green’
With a 134% giant leap in expenditure in lavish spending for hospitality, leisure, education & few other sectors, the Economy shows good signs of recovery and comeback with a bang. The ‘Go Green’ initiative campaign also evokes a good response as a part of Facility Management Software. We’ve made such value additions to InnoMaint’s Computer Aided Facility Management(CAFM) Software.
A solid step towards sustainable energy & environmental care
Through InnoMaint’s CAFM Software you’ll be able to introduce the ‘Go Green’ concept and start realizing the results in a short-term multi-fold helping you in fulfilling the care and concern for environment, workforce, quality of living and regulatory compliance etc. Act swiftly to capitalize on this master plan which is going to rule the future! You can also swiftly exercise control on the highest utility costs in running a business.
IoT integration lets Facility Managers go deep
This plan lines up several opportunities for the FM sector to transform the facilities in a smarter & exciting approach. The industries interested have to acquire intelligent sensors which are electronic devices. Your InnoMaint CAFM is smart enough to configure, interact with the devices and even step down electric power, gas or water usage. Pre-defined schedules can automatically alert the relevant stakeholders with real-time data. This makes it possible for Facility Managers to have deep insights into instant visibility of usage of the facility by its inmates & visitors.
Best time to infuse changes in facility administration
The integration between Artificial Intelligence, people, process, technology, sensors, assets by means of automation is a boon to the people of the current generation with a definitive role in the service offering. The master plan also reminds the service providers that the time is ripe now for infusing changes in their mode of delivery of services, switching over to modern trends, upgrade their capabilities to prep for future demands.
FM companies need to constantly update themselves with new techniques, modern technologies and best practices in delivering facility services to reduce repairs and contribute to increased productivity.
Tackle covid-19 challenges with full automation without human intervention
Considering the need of the hour with second waves of the cruel pandemic creating panic for another stint the FM industry is in a crucial need to embrace full automation with massive innovation which will also help in upskilling the staff and promote workplace safety in conjunction with fully automated covid-19 screening solution, people count & visitor management solutions
With the proliferation in Dubai population scaling 5 million mark, the pressure on maintenance and achieving the sustainability goals became tremendous and so many organizations have kick-started digital transformation to safeguard their reputation, bottom lines, standards of service, safety, compliance etc with a long term vision.
Strategy for Facility Maintenance in 2021 with IoT Powered CAFM
We hope the facility managers have started planning for the year 2021 in regards to embarking on the latest Facility Management(FM) approaches that shall work in the last phase of the pandemic & post corona world as the previous calendar year exposed the lacuna in tradition approaches centered around maintaining heaps of paper, couple of excel sheets that failed to work as expected and could not tackle the challenges posed by the new normal triggered by the pandemic.
New Normal for Facilities
The first supply of Vaccines might have come to the rescue of the people in our community. But the impact and aftermath effects of the pandemic on economy and businesses shall continue to reverberate at least for the next few years. Here is where Facility managers need to rise to the occasion and establish the significance of their role in the facility.
Digitized Maintenance Operations
Do you wish to add true value to the facilities you manage by achieving operational consistency and thereby imparting stability and balance to them, more conveniently? The core of many of the FM issues that have surfaced is the complexity of the operations that have to be executed on a continual basis including lockdown phases. So simplifying maintenance operations in a smart fashion holds the key to open the complicated knots of maintenance in the novel coronavirus era !
Intelligent Covid-19 Monitoring Solution
Secure Your workplace, streamline business operations and enhance safety using intelligent Covid-19 Monitoring Solution integrated with CMMS software that can interact with assets, infrared sensors and perform automatic detection of mask, screen temperature of visitors using thermal imaging cameras such as HIKVision. These innovations are incomparable to manual processes which steal much of your precious time. All these at reduced costs and greater ability to cut down on high maintenance costs in the form of proactive maintenance.
Gain momentum to your facility operations with InnoMaint that leads the innovation during the covid-19 times by introducing brand new features to the market.
IoT Integration Solution
We offer energy monitoring solutions that lets you go deeper into identifying energy consumption patterns instantly and turn off high consumption units automatically.
Remote Service App
Not just this. We offer a smart walkie talkie mobile app for team collaboration which is faster, reliable and more secure than traditional mobile calls. Go truly mobile carrying your CMMS while on the go and catch up with your technicians for the latest updates along with offline working capabilities.
There are upcoming features, in the pipeline, that are sure to make you excited further.
Multi Awarded CMMS Software for 2021 to turn the tables on maintenance management !
How To Alleviate The Negative Impact Of Corona In Busy Facilities?
Corona virus infection
Corona – The most dreaded virus of recent times was first reported in China, on 17 November 2019. Ever since the first known infection, it became wildly contagious with major outbreaks in East Asian countries. As of now, over 1.3 lakh people had been tested positive for the virus. The virus had claimed the lives of 5,000 peoples to date and continues to subject people across the globe to great hardships.
COVID-19 declared as a Pandemic by W.H.O
COVID-19 disease is relatively new and its victims are spread across more than 120 countries & territories. Based on its continuous assessment over the severity, spread and lack of adequate awareness among the public World Health Organization has declared the disease characterized by severe acute respiratory syndrome as a pandemic on 11 Mar 2020. Nevertheless W.H.O also firmly believes that the pandemic is controllable, follow these instructions from WHO. The only comfort in this period of misfortune is that around 70,000 people have got rid of the disease through quality treatment.
Transmission of Corona: Role of HVAC SYSTEMS
The primary reason for the scare of the virus is that currently there is no vaccine to prevent the coronavirus disease. The principal mode of transmission is mainly from an infected person to another person via respiratory droplets within a range of 6 feet).
Covering your mouth when you cough or sneeze is the first step to control the spread. However, the possibility of residual contaminants traveling through your HVAC system cannot be ruled out. Once the air in your facility becomes contaminated the virus can cling on to the evaporator coil or blower motor and can reside there for up to nine days. An HVAC system should be inspected at least twice a year. If the AC unit happens to be centralized then it has to be serviced each month. Even sophisticated air filters of premium AC models were tested to have some level of viral penetration. Even in the event of trapping the AC units aren’t capable of destroying the virus as coronavirus is very small, measuring between 0.06 and 0.14 microns in size.
Corona virus prevention
All countries must strike the right balance between safeguarding health, minimizing handicap to economic and social activities and respecting human rights. In several countries, Union & State Governments have urged business organizations to exercise a great degree of caution. A single victim to the disease can impair the progress of the entire team at workplaces. This shouldn’t happen. Preventive Maintenance(PPM) assumes greater significance in this scenario as backed by the proverb- A stitch in time saves nine.
Preventive Measures
The contingency plan should elaborate on a list of alternative plans, outcomes, and instructions covering all aspects of the business. Each worker in the factory should be made aware of the departments/staff who would be functioning at worksite & the place to locate required materials along with any modifications to till the situation returns to normalcy. If mechanisms such as ‘Work From Home’ are not in place, a strategy should be formulated as soon as possible and executed. Mobile should become an integral part of communications due to work from different locations.
Housekeeping staff may be required to routinely clean all frequently touched surfaces in the facility including cabins, doorknobs & cafeteria with cleaning agents. They’ll be replenishing disposable wipes in restrooms.
Role of Facility Management Companies
The services of facility management service companies would be in high demand by now. The servicing companies can prove their mettle by containing the spread of the virus to a great extent. With a simple, powerful & flexible automated maintenance management software, in place, the data is safely & instantly accessible with seamless communication. With such a tool facility managers can rise above the situation and oversee the big picture. Hospitals, Shopping Malls, Restaurant Chains, Factories, etc can entrust the maintenance work, much needed at the moment, to reliable servicing companies and focus on their core areas of business.
Minimizing the spread of Corona
Facility Managers whose role is crucial in these times should rise to the occasion and succeed in reaching out to the workforce, at large. They need to educate all employees on precautionary measures. They can restrict activities outside the facility and devise protocols for external communication. Employees can be advised to use public transportation to the least possible extent. If sales representatives exhibit doubtful symptoms they need to be advised to share the travel history with thehealth care provider. These efforts will bring down the risk of infections within the facility.
Due to the easy spread, Facility managers must prominently display precautionary measures for employees. They must direct maintenance teams to regularly disinfect all common areas in the facility such as machinery, raw materials, laptops, mobiles, portable devices, door handles, conference rooms, reception desks, etc.
The spacing of individual work cubicles should be more than 6 feet wherever possible & the entire facility be well-ventilated. Upon the confirmation of the corona infection, facility managers should be immediately notified. They should closely monitor the movement of outsiders into the facility than usual. Preventing the entry of visitors into the cafeteria will greatly limit the spread of the disease.
Protecting Employees At Work
The contingency plan should be articulated in a well-organized process as schedules. The schedules are a collection of related tasks. The tasks, in turn, can be broken down into checklists detailing the steps that need to be followed. The maintenance personnel should be made to acknowledge each step mentioned in the checklist.
As there is a long way to go to eradicate the epidemic the PPM measures need to be repeated on a regular basis for several months. The concerned staffs should receive timely alerts and mobile technology needs to be used in your favour to ensure seamless correspondence on preventative schedules.
Ensuring smooth workflow by keeping Corona at bay
To put things in a nutshell, It is high time to appreciate the need for an automated work order management system / CAFM to oversee that there are no deviations from the established process or loss of enthusiasm on behalf of maintenance staff in carrying out the necessary schedules.
Now it is time to refrain ourselves from socialization and resort to alternate channels of collaborating work and communication. Let’s continue to carry out our duties diligently and spread the awareness on Corona. May the God Almighty ward off the ill effects of the disease.
To Automate Your Preventive Maintenance Process
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Innomaintis glad to taking part in the most awaited FM Expo Saudi 2020 event of the region as an exhibitor. The grand event is undisputedly, one of the magnificent annual tech shows in the Middle East region of the globe. The event is slated for Feb 11-13, 4 PM – 10 PM.
FMExpoSaudi is an intellectual feast to servicing organizations, commercial building owners, facility managers & technocrats. We extend a cordial invitation to the intelligentsia for visiting our exhibit at stand number 2G15. The thought leaders from Innomaint are eager to shed light on the modern practices, IOT integration and the way embracing digital transformation will usher you into cost-effective, efficient, convenient and smart facility management with enhanced visibility of the workforce.
We showcase the CAFM(Computer-Aided Facility Management Software) of Innomaint that automates work orders, provides dashboards with pie charts, bar charts & graphs which convey the overall picture in a striking manner. Further to this, Innomaint CAFM provides a range of customizable reports which offer valuable insights into the various facets of the maintenance realm of the business.
Upon visiting our stand, you will get a fairly good idea of the quick implementation, easy to use interface and powerful capabilities of our application. We’re eager to answer your queries and clear any doubts you may have on adaptability of the CMMS into your organization and the suitability to maintenance needs of your business.
The usefulness of the application along with the richness of features has earned Innomaint a good reputation and a position of honour among the ever-increasing widespread client base and leading B2B software listing sites. As a testimony to the fact, we’ve added up several clients in the recent past and continue to witness a spell of receiving accolades and awards.
To sum up, facility maintenance management is smartly simplified enabling the facility managers to oversee the entire process with centralized visibility and increased transparency in the process. We have developed the application harnessing the power of cloud after a thorough analysis of the pain points faced by different industry verticals, in this regard. The application is customizable to the varied needs of each business – be it an SME, Enterprise or a start-up concern.
We are curious to learn about your outsourcing needs with us and offering special deals. Use this Golden Opportunity and be in step with the latest technology trends. We also take this opportunity to cordially invite business partnerships. We look forward to a fruitful & mutually beneficial collaboration with you. The prospects of earning via sales and referral partnership programs are promising and we shall bring out the power of synergy.
Markets & Markets perceived growth in trend of outsourcing facility management operations. On the Demand front, it interviewed Chief Executive Officers, Chief Operating Officers of MNC’s etc. On the Supply-side, it interviewed Chief Executive Officers and Co-founders of Key Companies. The research organization consulted FM associations such as
