Proactive HVAC Replacement

A CASE STUDY IN REDUCING HVAC REPLACEMENT COSTS BY $200 MILLION OVER 15 YEARS

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The Issue

One of the most significant expenses for any retail business is the need for ongoing replacement of aging HVAC assets, especially if this must be done on an emergency basis. Equipment failure not only posed an unexpected financial burden, but can also result in employee dissatisfaction, OSHA complaints, and unhappy customers unwilling to return.

With over 60,000 rooftop and split-system units, the client needed a structured approach to help identify failing units, prioritize replacements, reduce installation expense, and streamline the installation process.

Additionally, public goals related to energy reduction targets and greenhouse gas emission reduction provided additional incentive to develop a robust replacement program has HVAC energy usage accounted for approximate 40% of total facility consumption.

The Burton Solution

Burton’s in-house team of engineers and developers designed a predictive analytics tool that provides strategic guidance on the optimal timing to replace aging equipment, thereby reducing the risk of emergency replacements and mitigating repair and maintenance expenditures. This proactive approach not only safeguards against costly downtime, but also optimizes operational efficiency, delivering sustainable performance and long-term savings.

Burton’s analysis projected a net benefit of $200 million in the client’s overall HVAC capital and operating expenditures over the course of 15 years.

Based on this analysis, Burton launched a program in 2021 to proactively replace HVAC equipment near the end of life and demonstrate the overall return on investment for this prudent capital investment. By replacing equipment proactively, Burton and the client have demonstrated that by following the program process established, they are able to install new HVAC units with a higher efficiency and at an installed cost that is 15-20% lower than is possible if emergency “run-to-fail” replacements are required.

Burton’s commitment to vendor neutrality also underscores the dedication to delivering optimal solutions tailored to each client’s unique needs. By adopting a vendor-neutral approach, Burton remains impartial and unbiased, allowing clients to explore a wide array of equipment suppliers and solutions without any preconceived preferences, while also taking into consideration factors such as availability, reliability, cost-effectiveness, and compatibility with existing systems. This openness enables Burton to thoroughly evaluate and select the options that offer the greatest value proposition for clients.

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Our Results

7,900

Number of Units Installed

60000

Portfolio-Wide HVAC Unit Count

200

Million Estimated in 15-Year Savings

15-20

Cost per Unit Installation Savings

Work With Us Today

Contact us today to discuss how you can reduce energy costs through supply and risk management.

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