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Outdated FM practices are costing the hospitality industry hundreds of millions of pounds a year

The UK hospitality industry is missing out on savings of £736 million a year due to outdated facilities management practices, reveals a new study.

The sector needs to urgently embrace new ways of working to realise savings and cut carbon emissions on the journey to net-zero, argue facilities management experts at Cloudfm. The company examined research from the University of Essex and customer data to understand the impact of technology and greater transparency on the facilities management sector.

The study found that an average saving of 23 per cent could be secured throughout a facilities management contract, enabling a 65 per cent reduction in reactive visits.

Cloudfm teamed up with the University of Essex to test a model for change. The research included several sites from some of the UK’s largest fast-food operators.

The conclusions were that efficiencies need to be driven through technology and behavioural change in tandem. The data showed that an internet of things (IoT) predictive solution will help to automate a maintenance regime and maximise the operational efficiency of everything from ovens to air conditioners.

Greater localism in sourcing facilities management engineers could also reduce the carbon footprint of activity through reduced travel. To address this, the model built greater flexibility into the system, using available intelligence to match the right skills to the job at the first visit.

Commenting on the findings, Jeff Dewing, CEO of Cloudfm, said: “Better use of data through the supply chain can create a new era of transparency that allows problems to be fixed faster, first time round. In addition, it will enable pressured staff to focus on delivering a great customer experience while saving money and benefiting the environment. 

“Outdated practices are costing the hospitality industry hundreds of millions a year and costing the planet. As we emerge from the pandemic, there is a clear opportunity to reassess the approach to facilities management for the benefit of the environment and the bottom line.” 

Cloudfm also argues that energy data should be shared with staff regularly to help them embrace more environmental-friendly practices and feel a sense of ownership in the journey to net-zero. The company believes that greater localism in facilities management is crucial and developed a marketplace to ensure the best qualified, local engineer is always available.

According to RICS, the total UK FM spend is £64 billion. The hospitality sector is five per cent of GDP, which equals an FM spend of £3.2 billion and a 23 per cent saving = £736 million.

Facilities Management Survey 2022

Informa, the organisers of Facilities Show, together with FMJ magazine, have teamed up to launch a questionnaire which aims to offer a useful snapshot of where the facilities management sector is now, and an outlook on the future.

For instance, are you asking workers to begin to return to the office with a hybrid home/office work schedule? Are you revising your premises to enable more flexible ways of working and as such have your workplace strategies, including sustainability, wellbeing and engagement had to be radically rethought?

Your anonymised answers will contribute to a report on the biggest challenges and opportunities facing facilities managers; now, and anticipated in the next 12 months.

To take part click here.

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