As the fiscal year comes to an end, facilities across the nation are beginning to make plans for their leftover facility budget. Used wisely, this budget surplus can set a company up for another profitable year.
Having excess room in your operating budget is a sign that your facility had a great plan leading into the previous fiscal year. However, you might be unsure about the best ways to allocate a budget surplus.
What to Do With Any Leftover Facility Budget?
While it may be tempting to just roll your budget into next year’s funds, this will likely leave you with a bigger excess down the road. Instead, we suggest being proactive. Here are three practical and constructive ways to use your leftover facility budget before the close of the fiscal year.
1. Perform Maintenance
The importance of regular facility maintenance cannot be overstated. However, most facilities already follow a pretty tight maintenance schedule. Upkeeping key components, such as your HVAC system and boiler, should already be built into your facility’s annual budget.Still, there may be an optional maintenance procedure that you have been putting off. This may include a multi-point inspection or total system tune-up. What better way to close out the year than by making sure that your essential equipment and supplemental components are working at their best?
Related: Vibration Analysis and Predictive Maintenance
2. Make Necessary Repairs and Upgrades
We recommend making any needed repairs promptly to prevent more significant issues with your equipment. Tate also understands that it can be difficult to halt production during your peak season, especially if the issue at hand is not causing safety issues for the staff.Having a leftover facility budget presents the perfect opportunity to make these repairs before the next busy production run. You can upgrade outdated components and focus on making your facility more efficient.
3. Purchase New Equipment
It’s no secret that certain equipment parts can take time to procure. However, time is something that your facility doesn’t always have.Depending on the size of your operation, every hour of downtime may cost your facility thousands or tens of thousands of dollars in lost revenue. That is why we believe that purchasing new equipment and parts can be the best option for using up your leftover budget.
There are certain components that your boiler operator and HVAC technicians should have in stock at all times. While lead times vary by region, the following are parts that every facility should have in supply:
HVAC Motors
Chances are, you don’t have a spare HVAC motor on hand because it can be a costly investment. Having a leftover budget can mean adding one to your inventory. The motor is the core of your cooling system -- having one readily available is a great insurance policy.
Gaskets and Seals
You can never have too many O rings, seals, and gaskets in stock. They are incredibly affordable and easy to purchase, which is why some facilities fail to keep them on-site. Unfortunately, it can be quite challenging to find the right size for your system during peak production season. Use your excess funds to stock up.
Pressure Control Device
One of the most important safety components to your boiler is the pressure control device. Your boiler cannot be safely operated without it. Use some of your leftover budget to order a spare if you do not already have one on-site.
Final Thoughts on Facility Budget Use
The tips above are a great starting point for using up that excess budget. In addition to the suggestions above, the team at Tate also recommends reaching out to your supplier. Find out what equipment or accessories have the longest lead times in your region. If a particular part is tough to come by, consider adding it to your inventory, or reach out to Tate for assistance. Facility budget use can bolster your ability to remain operational in the coming year. Make it count!
