Financial Factors Drive Energy Management Investment

July 23, 2012

Roughly 85% of building owners and operators depend on energy management to achieve operational efficiency, a 34-point increase in the last two years, according to a global survey by technology developer Johnson Controls.

Nearly one-third of the 3,500 respondents indicated that tax credits, incentives, and rebates have the greatest impact on increasing their investments in efficiency.

However, that number jumps to 42% among the 1,139 respondents from the U.S. and Canada, where nearly 75% of commercial buildings are more than 20 years old and are likely to require significant improvements, according to Johnson Controls Building Efficiency president Dave Myers. American and Canadian respondents also named energy cost savings and enhanced brand or public image as top motivators.

Finances remain the major barrier to pursuing greater efficiency among U.S. and Canada respondents, the survey noted. A lack of funding to pay for improvements plagued 37%, followed by insufficient payback or ROI at 21%. Finance-specific barriers included competition for other capital investments (36%) and insufficient internal capital budget (30%).

Other significant findings from this year’s survey included the response to water efficiency questions. About 45% named water efficiency improvements as an energy efficiency action taken in the last 12 months, landing the category in the top three efficiency actions behind lighting improvements (78%) and HVAC and/or controls improvements (77%).

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...