Ways facilities managers can deal with inflationary pressures | Prestige Real Estate News

By Tunde Obileye

Last year witnessed unprecedented rise in the cost of living that led to increased inflation. Whilst cost of living is a global issue, it is a major challenge for the facilities management industry in Nigeria due to some peculiar factors.

The impact of inflation on FM can be significant as facilities managers are responsible for maintaining and managing the physical infrastructure of a built environment. Inflation can increase the cost of goods and services such as cleaning supplies, maintenance equipment, and energy. As the cost of these goods and services increases, the overall budget for FM may need to be increased to maintain the same level of service.

Inflation can affect the cost of labour when workers demand higher wages to maintain their purchasing power. This can lead to increased labour costs for the FM sector which can also impact the overall budget. Inflation can also affect a FM organization as a whole, potentially reducing its competitiveness and profitability. As a result, it is important for facilities managers to closely monitor inflation and its impact on the organization and its facilities management operations.

Being aware of global inflationary pressures, FM leaders need to understand how these factors impact FM costs and strategize on ways to manage these costs. This will be the key challenge going forward.

With skyrocketing energy prices compounding the issues facing facilities management, FM leaders will do well to concentrate on managing this increase and to keep cost under control.

We all know that continued pressure to reduce costs and maintain or increase quality despite increasing inflation is a perennial challenge. We have to demonstrate to customers that FM should be considered a value-added service.

Facility managers can counter inflation by implementing a variety of strategies. One way is to create a budget that accounts for potential increases in costs, such as raw materials, labour, and utilities. By anticipating these increases and factoring them into the budget, facility managers can ensure that they have the necessary funds to continue operations without interruption.

Another strategy is to increase efficiency and productivity in order to reduce costs. This can be achieved through a variety of means such as implementing lean operational processes, optimizing workflows, and introducing new technologies that automate tasks and reduce the need for labour.

Another strategy is to implement cost-saving measures, such as energy conservation and waste reduction, and negotiating better rates with vendors and suppliers to lock in prices for extended periods of time. This can help to mitigate the effects of inflation on the cost of goods and services.

In addition, facility managers can consider diversifying their revenue streams by offering new products and services. This can help to increase revenue and offset any losses that may be incurred due to inflation.

Facility managers can use a combination of these strategies to effectively counter inflation and protect their bottom line. These strategies will undoubtedly support operational efficiencies, staff welfare, and sustainability and will present the biggest opportunities for progressive FM companies.

FM services must continue to evolve to connect people, assets and spaces with a digitally connected workforce, using intelligent analytical platforms which can be smartly and centrally managed and monitored by utilizing the Internet of Things (IoT), Building Management Systems (BMS), Cloud, and Artificial Intelligence (AI)-based technologies. However, attracting and retaining tech-savvy talent is a huge challenge.

FM companies embracing technology now will have a distinct competitive edge, facing up to the major challenges in the way the built environment is operated and managed.

• Culled from Businessday