Get Commercial HVAC Upgrades Approved – Here’s How (+ Bonus Tip)

Get Commercial HVAC Upgrades Approved – Here’s How (+ Bonus Tip)

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Facility managers are familiar with the value and expense of commercial HVAC equipment so getting HVAC upgrades approved are often a challenge. It’s no secret this equipment, the maintenance and repairs consume a significant part of a facility’s budget. Too often, facilities go without needed commercial HVAC upgrades due to cost, much to the detriment of the facility. 

Skipping these upgrades often adds more cost to the upkeep of aging and increasingly inefficient systems. Like a lot of systems, heating and cooling, ventilation and air quality are often taken for granted. It’s not until the AC breaks down, inventory overheats or sensors are blaring that most people remember it exists. 

As a facility manager, you work hard to make it last as long as possible, so we’re here to help make your job easier. In this blog, we’ll review arguments to use when requesting approval of upgrades to your HVAC and indoor air quality equipment. 

If you struggle to get your commercial HVAC upgrades approved, use these reasons to show how your recommendations benefit your facility. After all, we value consistent and quality performance in our employees and coworkers, why not our equipment? 

How to Convince Decision Makers to Approve HVAC Upgrades

  1. Better HVAC means better energy efficiency and lower utility bills
  2. HVAC upgrades bring new warranties and fewer repair costs
  3. Reduce sick days and improve air quality with HVAC upgrades
  4. Prevent lost business or damaged inventory due to breakdowns
  5. Modern commercial HVAC offers more eco-friendly options

Improve Facility Energy Efficiency and Lower Utility Bills

New commercial HVAC systems run more efficiently than older equipment. Your Estes Commercial Account Manager is happy to estimate cost savings and other returns. Hard numbers are a great benefit when seeking budget and HVAC upgrades approval. 

Nationally, commercial buildings use an average 25 percent of energy expenditures toward space heating and 7 percent toward cooling. It’s fair to assume the cooling percentage is higher in our climate. Does your facility house heat-generating equipment, store heat-sensitive inventory or server rooms? 

All of these increase your cooling load and require more energy for cooling and/or refrigeration. It becomes easier to approve commercial HVAC upgrades which directly contribute to lower operating costs. After all, they increase net operating income and the building’s overall value.

Reduce Repairs and Breakdowns

Has your commercial HVAC equipment cost you in repairs and inconsistent performance? Older equipment incurs fees for repairs but in addition, there’s your time. You probably have to drop whatever you’re doing to deal with the repair. 

There’s also the distraction the repair or outage causes to other employees and operations or customers. These are costs as well as a nuisance. 

New HVAC equipment comes with warranties to cover essential components for a set period. While repairs are less likely, they’ll be covered if necessary. This protects your facility from unexpected extra expenses of heating and air conditioning repairs. 

Therefore, upgrading commercial HVAC provides new warranties and gives business owners added protection from significant repair bills.

Cut Down Sick Days and Lost Productivity

Did you know how much indoor air impacts workers, guests, patients, and customers? Sick Building Syndrome (SBS) is directly related to airborne contaminants within a building. If employees or other long-term occupants experience a high rate of respiratory conditions localized to your building, they’re probably experiencing Sick Building Syndrome. 

Have you ever stayed in a hotel or gone on vacation only to immediately come down with a sinus infection or react to the change in the indoor air? If your issue resolved once you returned home, you probably experienced a minor version of SBS. 

In the 1970s building codes changed in reaction to the oil embargo to conserve energy. More recently, the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) revised ventilation standards because indoor air has become more polluted than outdoors. 

Indoor contaminants vary from mold spores to off-gassing new carpet but produce symptoms such as headaches, dry sinuses, coughs, difficulty concentrating and fatigue. 

Commercial HVAC upgrades target indoor air quality issues contributing to illnesses among your workforce. With better indoor air quality, commercial HVAC upgrades reduce illness and associated absenteeism, which could also benefit your company with health insurance premiums. 

Finally, studies prove better indoor air quality and a more comfortable indoor climate help facilities avoid drops in productivity as well, making your workplace more profitable. Estes Commercial can help with ventilation, building automation systems and indoor air quality equipment. 

Related blog: Why Proper Ventilation and Air Distribution Matters

Prevent Lost Business, Downtime and Inventory Damage with Approved HVAC Upgrades

Breakdowns with your commercial HVAC system create an uncomfortable indoor climate which often turns away customers. All it takes, unfortunately, is one bad experience to lose a customer forever. When your facility hosts multiple tenants, you risk losing business through lease renewals if HVAC systems experience frequent outages. 

Do you produce temperature-sensitive inventory? Breakdowns create a window for inventory damage, loss, and even litigation if the downtime threatens the ability to deliver goods or services. 

The loss in terms of revenue, productivity, customer experience, and productivity vary based on industry, the duration of the breakdown, the time of day, the number of people impacted and more. 

According to an annual study by Information Technology Intelligence Consulting, 98 percent of respondents said a single hour of downtime costs over $100,000. Thirty-three percent of firms reported an hour of downtime cost them between $1-5 million. These may seem extreme to you but the point is, the damage is often greater than one thinks.  

Enhance Sustainability and Stay Compliant

Today’s consumers are eager to support businesses who care about sustainability and are doing their part to better the world around them. You may not have the capacity to install a green roof but you can drastically reduce your facility’s impact on the environment. When the company agrees to HVAC upgrade approvals you reduce facility energy consumption. 

Modern controls and building automation systems (BAS) deliver more data to inform decisions. BAS lets you monitor and control multiple systems including lighting, security cameras, entrance/exit doors, humidity, heating and cooling usage and more. 

In addition, is your commercial HVAC system still using R22 refrigerant? The phase out is almost complete. Plan for R22 costs to skyrocket as it becomes more scarce. Get HVAC upgrades approved and enjoy modern and compliant air conditioning. Let Estes Commercial help your business improve sustainability and show customers you’re listening.

Related blog: What’s the R22 Refrigerant Phase Out Impact on My Business?

BONUS TIP: Tax Code Changes Encourage Major Purchases and Free Up Cash

With the change to Section 170 of the U.S. tax code, small businesses may deduct the entire purchase cost of equipment like a new commercial HVAC system. Previously, businesses were required to deduct the depreciation over 39 years. 

This way, the entire cost comes off the operating expense and lowers your tax bill. Use the tax savings to reinvest in your business. Consult your tax professional for specifics to your situation and to determine which purchases qualify. 

Related blog: Commercial HVAC Tax Deduction Update for Atlanta: Section 179

Estes Commercial Helps You Get HVAC Upgrades Approved

At Estes Commercial, we assess your business and HVAC energy consumption as well as air quality challenges to determine where upgrades provide significant improvement and a great ROI.

Our goal is to help make your facility more comfortable and energy efficient as well as reduce costs for your business. Explore the systems and improved technology we offer and see how they are able to positively impact your facility. 

Our team is happy to provide estimates and evidence you need to get commercial HVAC upgrades approved. We provide dedicated installation, maintenance, and repair service to help you make the most of your commercial HVAC equipment. We help commercial businesses all over Atlanta including daycares, schools, healthcare facilities, warehouses, places of worship, and retailers.

Contact Estes today to discuss your HVAC challenges and how we may help.