Facility Management Budgets 2023: How to Create Them Without Overlooking Trends

ACCURATE BUDGETS NEED ACCURATE DATA

FM budgets were slashed due to the pandemic.

Budgets for facility management are typically classified as cost centers instead of revenue centers. Facilities managers are seeking ways to save money and plan their budgets more accurately since businesses have been squeezed for the past two years.

The CFO wonders which types of maintenance can be put off. In order to answer this question from the C-suite, many building managers turn to software applications. With the help of these programs, accurate budgets and reports can be created. 

Facility managers have access to vast amounts of historical data. In order to manage all of it, FMs utilize computerized maintenance management systems (CMMS). By using these programs, you are not only able to ensure your facility is running at full capacity, but you can also plan your budget for the upcoming year with detailed reports.

Here's a list of tools for Facility Managers:

Asset Management Systems - also known as Enterprise Asset Management programs (EAM) or “equipment maintenance software”

Maintenance Management Systems - accepting, prioritizing, and assigning work orders and repair requests

Inventory / Parts Management Systems - tracking supplies necessary to keep equipment and assets in their optimal condition

Building Automation Systems - "smart" control of lights, HVAC systems, water use, security cameras, emergency systems, and door locks

Access Management Systems - monitor and manage the ebb and flow of visitors and employees



CONNECTED INTERNET OF THINGS (IoT) MONITORING SYSTEMS

Are desks being hot-swapped? Are remote employees being hired? Do you keep track of space occupancy?

In 2021, 41% of employees will work remotely at least part of the time, according to Gartner. Most offices are too crowded for a social distance to be maintained once everyone is present. Office capacity calculators provide a solution to this problem.

Sensor technology is now being deployed in many facilities, not just in restrooms. The devices communicate with the building's HVAC system in order to ensure high levels of efficiency based on how many people are in the building at any given time. Energy savings can range from 15% to 40% with sensor-driven building optimization.



Takeaway

Managing finances is one of the most important responsibilities of Facility Managers. It is always a tedious and time-consuming process to prepare the annual budget. In order to develop a budget for the future, you need to know what was actually spent on what last year and previous years. Along with what you know, you need to use your crystal ball to consider unknowns that can impact your budget. Occasionally, a facility manager has to make decisions about activities or costs that impact her budget without 100% certainty. A facilities budget will involve many parts and components, so being precise is key. Relying on rough estimates during the budget process can lead to inaccuracies.