News & Insights

For municipalities and state/provincial governments, Facility/ Asset Managers and Chief Administrative Officers are tasked with the monumental responsibility of ensuring that infrastructure, public buildings, parks, fleets, and essential services run smoothly and efficiently while balancing tight budgets, aging infrastructure, and growing community needs.

They face daily challenges—everything from unexpected repairs and climate resilience planning to leveraging new technologies for smarter asset management—often in the face of a backlog of deferred maintenance. The stakes are high and the demands are constant to make informed decisions.

This article offers insights and strategies to help government leaders navigate the complexity of balancing facilities, systems, time, and money when it comes to managing assets.

Asset management challenges facing municipal and state/province leaders

Constrained budgets are a major hurdle. With limited financial resources, it can be difficult to prioritize asset maintenance and upgrades, especially when there are many competing needs within the community. This often leads to deferred maintenance, resulting in aging facilities that require more extensive and costly repairs in the long run.

Staff turnover further complicates asset management efforts. Frequent changes in personnel can disrupt continuity and institutional knowledge, making it challenging to maintain a consistent and effective approach to managing assets.

Additionally, changes in population can significantly impact asset management. Some municipal, provincial/state governments are experiencing rapid growth, putting a strain on existing infrastructure and requiring new developments to meet increasing demand. Conversely, declining populations in other areas can lead to underutilized assets and reduced revenue, complicating the prioritization of maintenance and upgrades. Understanding changing demographic trends is important for longer term asset planning.

These issues can leave many government leaders feeling overwhelmed and as if they are perpetually behind in their efforts to manage and improve their assets. However, despite these challenges, there are practical strategies that can help turn the tide.

Uncovering hidden savings through asset management planning

While the benefits of proactive planning are well known, the untapped potential lies in the cost savings that strategic asset management makes possible. By starting with a holistic assessment, government leaders can identify opportunities for cost reductions that go beyond immediate repairs.

• Bulk procurement. Planning maintenance and upgrades in advance enables government to purchase materials and services in bulk, leading to significant cost savings through economies of scale.
• Optimized scheduling. Coordinating maintenance schedules across different facilities can reduce downtime and labor costs. For example, scheduling HVAC upgrades during low-demand periods can minimize disruptions and reduce overtime pa
• Energy efficiency upgrades. Incorporating energy-efficient technologies during planned upgrades can lead to substantial long-term savings on utility bills. This not only reduces operational costs but also contributes to sustainability goals.
• Extending asset lifespan. Preventive maintenance, identified through regular assessments on a five-year basis, helps extend the lifespan of assets. This delays the need for costly replacements and maximizes the return on investment for existing infrastructure. This approach allows for buildings to age more gradually without losing operational needs.
• Improved funding opportunities. Having a detailed asset management plan can improve access to grants and funding opportunities. Many funding bodies look favorably on municipalities with clear, strategic plans for maintaining and improving their infrastructure.
• Capital planning. Comprehensive long-term plans help municipalities budget for major expenditures and make strategic decisions about property retention or disposal.
• Risk mitigation. Proactive assessments can enhance life safety, regulatory compliance, and achievement of sustainability goals.

Developing a strategic asset management plan

When managing numerous municipal facilities, it’s easy to fall into the habit of addressing only the most immediate issues. Moving from a reactive to a proactive approach begins with developing a strategic asset management plan.

Start with building condition assessments

Developing a full inventory of assets and their conditions is a great place to start. Building condition assessments can evaluate site, architectural, structure, mechanical systems, electrical systems, plumbing, and technology as well as barrier free and code compliance. This involves documenting everything from the square footage of carpet to the age and condition of HVAC systems for every facility.

A comprehensive inventory with condition assessments allows government to plan for major replacements years in advance and coordinate related projects. This strategic planning not only ensures that resources are used efficiently but also offers significant cost savings by combining repairs and upgrades, reducing the frequency and high cost of emergency fixes.

Make decisions about prioritization

Often the “squeaky wheel” the public complains about isn’t the most pressing concern when it comes to risk management or longevity. Here are some questions that can help with prioritization:

• What are the critical assets that, if they were to fail, would have the most significant impact on our community? Identifying which assets are essential for public safety and daily operations helps prioritize their maintenance and replacement.
• Is government spending money on facilities or systems that need to be replaced? Performing a cost-benefit analysis can determine whether current expenditures are being directed towards assets that are near the end of their useful life or if maintenance could extend their lifespan.
• What has changed over time that impacts current usage? Growth and decline in population and age makeup can significantly impact where money needs to be directed and what needs to be updated, replaced, or decommissioned or repurposed.
• Can we integrate sustainability and energy efficiency into this plan? Consider opportunities to incorporate green technologies and practices that reduce both operational costs and environmental impact. Keeping in mind that keeping existing facilities in place with the ability to increase energy efficiency is a good path to reducing carbon emissions in some cases.
• What are the long-term financial implications of our current stance? Assess the cost-effectiveness of current strategies and explore ways to achieve better financial sustainability. It is important for everyone to understand the impacts of deferred capital investment on each of their facilities and prioritize which should become a focus. Sample funding scenarios in conjunction with Facility Condition Indexes are tools to aid in decision making.

Refine the process over time

Whether a government is using a basic Excel spreadsheet or advanced asset management software, it needs a robust process to track asset conditions, predict maintenance needs, and optimize resource allocation. This process should be clear, defensible, and transparent, with established criteria for prioritizing projects based on factors such as risk, impact, and cost-benefit analysis.

A clear process can also help in cases where staff turnover is high so that the process itself passes on institutional knowledge and facilitates decision-making.

Governments’ can partner with a third-party consulting engineering and architecture firm—like Salas O’Brien—for building condition assessments, life cycle cost analysis to help with prioritization, and for establishing or refining an overall asset management process. These experts can provide valuable insights and guidance and help cities develop a working process that is both effective and adaptable. By leveraging their expertise, governments can refine their asset management practices over time, ensuring continuous improvement and long-term success.  A company such as Salas O’Brien can work with you in the long term with follow-up studies and design services to make your asset management plan fully implementable.   We are here for the long-term relationships. Contact us.

For media inquiries on this article, reach out to Stacy Lake, Director of Corporate Communications.