Deferring Facility Maintenance Will Cost You More in the Long Run
A recent article in the Louisiana State University Reveille, reveals the true cost of deferred maintenance
and the need for greater importance to be placed on preventative maintenance
programs for the buildings on its campus.
According to the article, in the 1980’s the state of
Louisiana saw a comparative budget shortfall and the University was required to
push back funding for several academic buildings across its campus that were in
dire need of repair. Tony Lombardo, executive director of Facility Services at
LSU said that many of the systems in today’s buildings on the campus are the
same ones on which maintenance had been deferred three decades ago. “That’s why
these budget situations are so devastating, because we’re climbing out of a
hole, not moving the University forward.” It is widely accepted that putting
off a routine facility maintenance schedule will actually cost a business more
in the long-term. Each year, the cost of maintenance increases by about 5% due
to inflation, rising costs of supplies and man-hours. A recent assessment of
LSU’s campus building provides evidence, indicating that the University would
have to fork over more than $322 million to bring all of the buildings up to
current standards.
The issue is not specific to LSU, however. Another study of Arkansas State
University’s maintenance budget indicates a similar finding. The University has
experienced considerable enrollment growth. Despite this growth ASU has proposed
modest tuition rate increases which only allow for teacher and faculty salary
increases. The institution will again not be able to address massive critical
maintenance needs. The latest facilities audit showed more than $205
million in deferred maintenance needs but ASU is not in line to receive any
earmarked deferred maintenance funding from the state this year.
The need for routine preventative maintenance programs applies
to buildings and homes of all sizes and allows for the early identification of
problems. It significantly increases the life cycle of buildings and equipment,
lowers expenditures and allows for better planning and budgeting.
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