87% of maintenance is reactive in commercial real estate. In this video, Enertiv's CEO, Connell McGill, explains why preventative maintenance is a no brainer and why technology is making it easier than ever to take advantage of these benefits.
Hi I’m Connell, the Co-Founder and CEO of Enertiv. Today I want to talk about preventative maintenance and why, if your portfolio does not have a preventative maintenance strategy in place, you might want to reconsider.
But don’t worry, you’re not alone: over 87% of maintenance is completely reactive. This isn’t good. It leads to 75% more equipment failures, it reduces equipment lifetime by as much as 36%, your budgets become unpredictable, and you have a lot more tenant complaints.
Preventative maintenance, where you have a schedule and you’re regularly adjusting and maintaining individual pieces of equipment in your buildings is really a no brainer.
You’re going to have reduced equipment breakdowns, it’s going to extend the lifetime of all of your equipment, it’ll level out your budgets and you’re going to have far less tenant complaints.
The best part of all is that studies have shown recently that preventative maintenance can deliver as high as a 545% return on investment.
So why aren’t more companies doing preventative maintenance? Well, some have tried and failed, some are just too busy with repairs and putting out fires to keep their tenants happy, some think it’s too complicated or don’t have the internal resources to put a plan in place, and lastly this piece is important, some are just concerned about the initial investment.
I don’t want to sugar coat this. There certainly are some added costs and productivity will take a hit initially, but in the long run, it’s going to pay for itself over and over again.
The good news is, it’s gotten even easier to adopt a preventative maintenance strategy. There are new technologies today that can study how each piece of equipment in a building is performing. With that data, it can basically tell building operators when to look at specific pieces of equipment and what adjustments need to be made to avoid much larger equipment failures down the road.
These systems can also predict and detect when major pieces of equipment are going to fail. If this happens, operators are notified right away, and showed exactly where that equipment is located, how it’s powered, how to fix it, and what to do in order to get it back on line as quickly as possible.
The last piece, and this is important if you’re an owner who’s considering adopting a new technology like this, you’re going to have full transparency into all the equipment-level issues that you have in your building and across your portfolio of buildings. You’ll be able to see how quickly your on-site team is responding to these instances in an effort to improve your tenants’ experience.
I’d love to keep this conversation going, if you have questions, please comment below and have a great weekend.
If you're interested in using technology to create and/or optimize a preventative maintenance strategy, schedule a demo to see how Enertiv does it today.