Do your premises use excessive fuel?

Citation

(2000), "Do your premises use excessive fuel?", Facilities, Vol. 18 No. 10/11/12. https://doi.org/10.1108/f.2000.06918jab.004

Do your premises use excessive fuel?

Do your premises use excessive fuel?

A supermarket occupier could save £20,000 per annum by improving the company energy policy. This is one of the conclusions of a new benchmarking study published by BMI, Energy Benchmarking in the Retail Sector. The benchmarks show a wide range of energy costs for similar types of shops (see Figure 1).

Figure 1 Average fuel consumption in sector (all-electric)

The benchmarks have been derived from real data provided by managers of premises from a range of retail operations from small high street shops to large DIY stores. The report analyses fuel consumption for 14 categories of retail outlet:

1. 1.

   banks;

2. 2.

   book stores;

3. 3.

   butchers;

4. 4.

   catalogue stores;

5. 5.

   clothes shops;

6. 6.

   department stores;

7. 7.

   distribution warehouses;

8. 8.

   DIY stores;

9. 9.

   electrical goods – rental;

10. 10.

    electrical goods – retail;

11. 11.

    frozen food centres;

12. 12.

    off-licences;

13. 13.

    shoe shops;

14. 14.

    supermarkets.

The report also differentiates between those using a mix of electricity and fossil fuel and those using electricity only.

The report summarises the results for each category and contains a detailed analysis of the results for supermarkets. Detailed analyses of the other categories are contained on a disk included free with the report.

The report was prepared in conjunction with the Department of the Environment, Transport and the Regions and the Building Research Establishment Ltd.

Annual average maintenance costs can vary by as much as 170 per cent between buildings of different use, according to the latest BMI Review of Maintenance Costs.

The review provides estimates of average annual maintenance costs for over 40 of the most common types of building and results range from £900/100m² per annum for factories and warehouses to £2,500/100m² per annum for air-conditioned offices (see Figure 2).

Figure 2 Maintenance costs benchmarked

The estimates include all planned and reactive maintenance and are broken down into each of the three primary BMI elements: decoration, fabric maintenance and services maintenance and are expressed in £/100m². As some maintenance is by its nature cyclical, the costs for a particular building will vary from year to year. The BMI figures represent a long-term average.

The estimates are based on a study of both published reports and unpublished data collected by BMI and therefore, whilst based on factual information, the estimates remain informed opinion rather than hard fact.

Commenting on the report, BMI spokesman Alan Cowan stated: "Benchmarking focuses management resources on those areas of highest cost, allowing facilities managers to improve performance and ensure value for money. This report supplies essential information for anyone embarking on a benchmarking exercise or wishing to establish 'best value' in their maintenance operation."

Prices for maintenance work are rising faster than input costs, according to a comparison of the new BMI output price indices and the maintenance cost indices in the latest issue of the BMI Quarterly Briefing of Maintenance Costs.

While the All-in Maintenance Index rose by 0.6 percent over the quarter and 2.5 per cent over the year to 4th quarter 1999, both the Private and Public Housing Output Price Indices rose significantly faster. The Public Sector Index rose 4.8 per cent over the year while the Private Sector Index rose 9.7 per cent (see Figure 3).

Figure 3 Prices rising faster than costs: cost/price indices comparison

Materials prices rose by 0.8 per cent in the 4th quarter 1999, but have fallen 3.4 per cent over the year since 4th quarter 1998. It is estimated that materials prices will rise 1.2 per cent over the next year and 2.5 per cent in 2001.

Pay awards over the next two years for all trades are anticipated to be in the order of 3 to 4 per cent, except for private sector electricians who have recently been offered a two-year package comprising 13.5 per cent in February 2000 and 12.2 per cent in January 2001.

Based on these anticipated materials and labour increases, the BMI forecast is for maintenance costs to rise by 3.2 per cent in 2000 and 3.5 per cent in 2001.

BMI Special Report 281 – Energy Benchmarking in the Retail Sector. Price £30.00

BMI Special Report 288: Review of Maintenance Costs. Available as part of the BMI subscription service or individually priced £50 from BMI.

BMI Quarterly Briefing of Maintenance Costs. Available as part of the BMI subscription service or individually priced £75 from BMI, 12 Great George Street, Parliament Square, London SW1P 3AD.