Step One of Your Charlotte HVAC Upgrade is a Cost-benefit Analysis
Upgrading or replacing a commercial HVAC system is going to require a large, upfront investment. High-quality equipment, expert design and installation don’t come cheap. Because of this, needed upgrades often end up on the back burner in favor of maximizing the lifespan of existing equipment. And, while there’s nothing at all wrong with getting the most out of what you already have, sometimes it’s not the most cost-effective option.
In many cases, it’s important to get a clear understanding of the value of upgrading equipment and if it makes good business sense.
To help you determine if an upgrade is the right choice for your Charlotte commercial facility, let’s conduct a hypothetical cost/benefit analysis for upgrading or replacing your commercial HVAC system.
When do upgrades or replacements become necessary?
When you boil it down, your HVAC system is all about comfort. When tenants or employees are uncomfortable, it can turn into a loss of productivity, complaints, and even loss of tenants. Carrying out equipment upgrades and replacements as needed can help ensure your tenants and employees never have to deal with chronic discomfort inside your building.
To clarify, this is not referring to unexpected replacements due to catastrophic failure of the system. While emergency HVAC repairs in the Charlotte area do occur for a number of reasons, repairs usually cost more than proactive, strategic updates and installations.
What benefits come from proactively upgrading your HVAC equipment?
Approaching HVAC system maintenance and upgrades proactively saves money in the long run. It maximizes the operational lifespan of equipment, keeps it running at its best, and eliminates costly downtime caused by emergency failures.
Being proactive with HVAC system upgrades and replacements makes the following valuable benefits available to any commercial building or manufacturing facility:
- Improved comfort - Tenants, employees, and customers enjoy a more pleasant environment.
- Increased production - Happier, more comfortable employees are more productive.
- Increased property value - For commercial buildings that rely on income from satisfied guests and tenants, quality HVAC systems can significantly increase property value.
- Increased sales - Retailers that maintain a comfortable shopping environment entice customers to stay longer and spend more as a result.
- Improved product quality - In the case of clean room production or other environments that require cleaner air quality, a perfectly functioning HVAC system improves the quality of the finished product.
- Increased equipment longevity - As components are strategically and proactively upgraded, the entire system is able to run optimally, extending its lifespan
- Reduced operating costs - Strategic upgrades promote energy efficiency and optimized production, reducing operating expenses
- Controlled capital expenditures - Enhanced equipment longevity and performance lead to greater ROI for HVAC-related capital expenditures as well as a more predictable series of upgrade/replacement/maintenance expenses. Planned maintenance budgetable, but large, expensive, emergency replacements cannot be anticipated.
To summarize, proactively handling HVAC system upgrades and maintenance saves money, boosts the facility’s ROI, and allows system improvements to be budgeted strategically, all of which make excellent business sense.
What is the conclusion of the cost-benefit analysis?
Over time, considering the value of the HVAC service is important. Here are few suggestions:
- Look at past, present, and likely future energy usage and costs for your building
- Clarify your business goals to develop a budget
- Think about how the HVAC system is used, maintained, and eventually replaced
- Consider the initial and long-term costs of proposed upgrades
If you’d like to see the value in an HVAC system upgrade for your commercial facility, consider an operational assessment performed by our experienced staff. They can provide a strong business case (including a cost/benefit analysis like this one) outlining recommended maintenance and replacement schedules for new and existing equipment. To learn more, contact us today.