Let’s face the facts: upgrading or replacing a commercial HVAC system requires a large, upfront investment. Quality equipment, expert design and installation all come with a price tag. As a result, these services often end up on the back burner in favor of stretching the lifespan of existing equipment.

However, a clearer understanding of the value of upgrading can override undue procrastination. If the long-term value outweighs the cost, then upgrading makes good business sense.

To help you determine if an upgrade is the right choice for your facility in Colorado or Arizona, let’s explore a cost/benefit analysis for upgrading or replacing a commercial HVAC system.

Why are upgrades or replacements necessary?

When you get down to the basics, the HVAC business is all about comfort. When tenants or employees are uncomfortable, their pain becomes your pain, and it must be relieved. One of the ways that pain can be relieved is by carrying out equipment upgrades and replacements as needed.

Now, we’re not talking about unexpected replacements in response to catastrophic failure.

While we’re proud to be able to handle emergency HVAC repairs better than anyone else in Denver, Tucson, Phoenix, and throughout the Southwest, that’s not our preferred method of serving our customers, and hopefully it’s not yours either. An emergency repair usually means maintenance has been neglected or recommended upgrades have been ignored. Due to the potential damage caused, the inopportune timing, and the tight time constraints, emergency repairs generally cost more than strategic installations.

Approaching system maintenance and upgrades strategically and proactively saves money in the long run.  It maximizes the lifespan of equipment, helps it maintain optimal performance, and eliminates costly downtime caused by unexpected failures.

What will proactively upgrading your HVAC equipment mean for you?

Being proactive with HVAC system upgrades and replacements offers a number of valuable benefits for any commercial building or manufacturing facility:

• Improved comfort - Tenants, employees, and customers enjoy a more pleasant environment.
• Increased production - Happier, more comfortable employees are more productive.
• Increased property value - For commercial buildings that rely on income from satisfied guests and tenants, quality HVAC systems can significantly increase property value.
• Increased sales - Retailers that maintain a comfortable shopping environment entice customers to stay longer and spend more as a result.
• Improved product quality - In the case of clean room production or other environments that require cleaner air quality, a perfectly functioning HVAC system improves the quality of the finished product.
• Increased equipment longevity - As components are strategically and proactively upgraded, the entire system is able to run optimally, extending its lifespan
• Reduced operating costs - Strategic upgrades promote energy efficiency and optimized production, reducing operating expenses
• Controlled capital expenditures - Enhanced equipment longevity and performance lead to greater ROI for HVAC-related capital expenditures as well as a more predictable series of upgrade/replacement/maintenance expenses. Planned maintenance budgetable, but large, expensive, emergency replacements cannot be anticipated.

In other words, approaching HVAC system upgrades and maintenance proactively saves money, boosts the facility’s ROI, and allows system improvements to be budgeted strategically, all of which benefit the business.

So, do the benefits outweigh the costs?

One of the challenges we face in working with building owners across Colorado and the Southwest is what we call, “cost myopia.” To train yourself to look past the price tag itself and start considering the actual value of the services being proposed, we recommend considering the following:

• Look at past, present, and likely future energy usage and costs
• Create a budget
• Clarify business goals
• Think about how the HVAC system is used, maintained, and eventually replaced
• Consider the initial and long-term costs of proposed upgrades
• Consider the value of all the benefits listed above in real-world dollars and cents

If you’d like to see the value in an HVAC system upgrade for your commercial facility, consider an operational assessment. Our experienced technicians will provide a strong business case (including a cost/benefit analysis like this one) outlining recommended maintenance and replacement schedules for new and existing equipment. To learn more, contact us today.