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Report: Energy Use Declines, Utility Costs Rise



The overall cost of running a facility � led by a dramatic increase in utility costs � is 10 percent higher than four years ago, according to a recent International Facility Management Association (IFMA) research report


The overall cost of running a facility – led by a dramatic increase in utility costs – is 10 percent higher than four years ago, according to a recent International Facility Management Association (IFMA) research report. The report, Benchmarks V: Annual Facility Costs, shows utility costs, which include electricity, gasoline, fuel oil, steam water and sewage, have jumped 19 percent, compared to similar data from 2006.

While the increase in utility costs might not surprise some, it is happening at a time when energy use is down. When compared to IFMA’s 2006 benchmarking figures, average electricity consumption – measured in kBTUs per square foot – has dropped from 93 to 81, while gas consumption has remained constant at 35 kBTUs per square foot. This decrease in energy usage could be attributed to companies implementing energy-conservation practices, lighting improvements, and equipment upgrades.

Based on a survey of 1,032 facility professionals across North America, the report covers a variety of costs, including lease, maintenance, housekeeping, security, environmental, recycling, waste disposal, and space planning. The annual costs are displayed as dollars per square foot. Many of the costs are further broken down by industry, facility type and geographic region.


This year’s report reveals expenses associated with environmental initiatives also are increasing. For example, the cost of recycling has doubled in the past four years. While facility managers today spend an average of 4 cents per square foot on recycling, they were spending 2 cents per square foot in 2004, according to a previous IFMA benchmarking study.

To learn more about the survey results and methodology or to order a copy of the report, visit the IFMA Web site.




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  posted on 5/15/2008   Article Use Policy




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