Podcast #1 / Interview with Tomáš Korpáš, Director of Facility Management Division about current trends in Facility Management
Before we start talking about trends, could you briefly tell us what Technical Facility Management (TFM) actually is?
In a nutshell, it is the comprehensive care of real estate and the technical equipment of buildings. The aim of TFM is the appreciation of the building over time. It also includes other services such as property management, cleaning, reception, dispatching, online helpdesk and security.
Why should TFM be important to any building owner or tenant?
Because it ensures continuity of operation and, thanks to regular care of the equipment, stabilises or directly increases the value of the building. For owners and tenants, the priority is their own business, to which they must devote themselves fully. That is why it is important for them to be able to work with a proven partner who can provide them with comprehensive Facility Management (FM) services, including the care of technical equipment.
According to this year’s ranking of the Slovak Association of Facility Management (SAFM), ENGIE is the leader in TFM in Slovakia. To what do we owe this and what do you think is our added value?
We are of course delighted with the first place in the SAFM ranking. In my opinion, it means that we are probably doing something right. Seriously though, the award is backed by our teams of Facilities Management colleagues who do their job honestly every day and always strive to do their best for the client. Our advantage is that we have been on the market for more than 25 years and this time has been reflected in our know-how, experience, many successful reference projects and last but not least in the stability and high quality of the services we offer to our clients. So, if I were to sum up, I think that we owe our leadership mainly to our clients, who are satisfied with our work and show their trust in us by contracting new projects.
So from your point of view it is more of a human factor?
I think that it is not only human, but also professional and ultimately the complexity of the services also plays a role. ENGIE in Slovakia is not only involved in FM, but also in energy, technology installation and technical service. Internally, we link the services of all divisions so that the client can get the most out of the synergies thus created. He works with one partner who can cover several areas in different segments, knows his operations and thus knows the potential to make them run more efficiently.
Like other segments, the TFM segment is also affected by economic and political circumstances. At present, as the reverberations of the coronary crisis are slowly fading, we are faced with high inflation, rising energy prices and an energy crisis. How are these factors affecting the provision of TFM services?
I have to say that the corona has not touched us that much in the area of building management. Paradoxically, it has also had a positive impact on us, as we have been able to carry out activities that we would not have been able to do with a fully occupied plant.
We are currently witnessing a looming energy crisis, which we see as even worse than the coronary crisis, because it is affecting almost all societies economically. During the corona, it was possible to set up digital service provision, to work from home, but energy cannot be substituted and has a major impact on the functioning of companies. And that is where I see our advantage, because we do not only look at buildings from a management point of view, but also from an energy point of view, for example in reducing consumption or making operations more efficient.
The topic of the interview is current trends in FM. From what has been said, they are almost certainly marked by the energy crisis. So what do you think they are?
In the context of the energy crisis, I see trends especially in the diversification of the energy portfolio of buildings. This means that today we are looking at and assessing the technical equipment in buildings that was installed before the crisis and helped to maintain the operational standard of the buildings. Today, during the energy crisis, we are finding that the costs incurred in running these energy-intensive facilities are extreme. So we are thinking about how to make them cheaper to run.
We have two options. Either we change the operating parameters or the mode of operation of the equipment, or we have to replace it completely. Our aim is to prioritise non-investment measures in the first phase. We are trying to change the operating regulations of the equipment or their energy regimes in order to reduce electricity consumption. If this is not possible, or if the savings achieved in this way are not sufficient, we think about what to do next. In such cases, we propose medium- to long-term solutions that not only save costs, but also continue to ensure the continued use of the building for the tenants’ purposes. We design new facilities to meet the required standards and to be highly energy efficient.
Are clients open to new solutions and our suggestions? Are they happy to have a dialogue, to cooperate in finding solutions, or are they more conservative, meaning they have their own idea and find it hard to give it up? What is your experience in working with clients?
Clients listen and are open to new possibilities. The problem can be that the decision-making and approval process itself is often lengthy. This is sometimes to their detriment because, for example in the area of energy reduction, they could have received the benefits in the form of cost savings much earlier.
What is the reason for this?
Perhaps a fear of the future. They approach decision-making responsibly and consider all possible aspects. However, it is important to realise that, given what is happening in the world today, we can probably forget about the cheap energy we have had up to now. So diversification within the energy sector in the coming years will be very significant and companies need to prepare for it. If they want to succeed and remain competitive, they will have to accept investment in this area in the coming months and years.
Could you give us an example from practice of a client’s “success story” who accepted our suggestions, had a successful implementation and can now see concrete results?
Recent “success stories” certainly include projects where we have implemented the design, installation and operation of photovoltaics on the roof of a building. In the past, the payback on PV projects has been 10 years or more. Today, as we face an energy crisis and rising energy prices, the payback is significantly lower. We have helped several clients who have been able to reduce their electricity consumption from the grid thanks to photovoltaics.
In addition to reducing the cost of the electricity consumed, the installation of photovoltaics also provides clients with a new business model in the use of the energy produced from a renewable source. PV systems often produce surplus energy that can then be fed back into the grid. In addition to reducing their own costs, clients can also earn additional profit from the sale of this surplus.
Can trends in TFM be predicted for the future? What do you think clients should do today to prepare for them?
A big theme in recent years has been digitalisation and as much automation as possible within FM. Our advantage is that we operate throughout Slovakia. More than 350 employees work in the FM Division. Thanks to this, we also use the so-called allocation model of building operation. Through our nationwide coverage, we can cover all FM activities for the client, within their operations in different regions, without the client having to build their own team to provide these services. This is certainly more cost-effective for the client than if they had to outsource all services individually.
In the context of digitisation, our goal is to digitise everything we can. We want the services we provide on the premises to be recorded electronically and to have a digital footprint. To do this, we use various CAFM systems, which we are developing together with the creators, and of course we are also creating our own, which makes the work of our technicians easier. Our internal goal is to get rid of all the paperwork by the end of next year that we do not need to file from a legislative point of view.
Finally, I would like to mention the consierge service, which is not yet widely used in FM in Slovakia. The service brings benefits mainly to the employees of the clients to whom we provide FM services. I am talking, for example, about small services – repairs, servicing or delivery service, which can be provided to the client’s employees within the framework of cooperation.
