Corporate Profits driving down Quality of Service
In tight economic times corporate accountants and advisors dictate to the real estate asset managers and owners what the numbers have to be to be successful. Public REIT’s (Real Estate Investment Trusts), Government and private enterprises seek bottom line performance numbers. Degrees of profitability reach beyond achievable human and technological performance levels.
Managers of corporate business plans for building asset maintenance are forced to drive down costs of quality service providers by doling out RFP (Request for Proposals) that provide the lowest possible cost to end user. These are often followed by best and final pricing negotiations when they pick a few often-desperate companies to dangle the carrot in front of.
For at least the last ten years since the unforgettable 911…service providers have been asked to sharpen their pencils. Providers have been asked to absorb, refigure, reconstruct, consolidate, innovate, add service and rebuild businesses to comply with today’s fiscal demands. Many were forced to pay under the table, hire or employ illegal immigrants. Those who are don’t, get penalized or cannot compete with those who do.
Many of these large corporate machines that are driving price reduction play fair, however the norm seems to be that unethical business bidding practices are fair game. Many service providers are falling by the wayside because they get cornered and are bound by unprofitable contracts. Often square footages are manipulated or promised only to be retracted at the final hour. Take it or leave it!
The Government and private enterprise is advancing their demands of what is considered environmentally preferred. USGBC’s LEED (Leadership in Energy and Environmental Design) programs force implementation of healthy building practices. Green buildings are becoming the norm. Educated facility service providers are needed.
Service providers have increased pressure to pay rising insurance, health benefits, education and unemployment costs. Cleaning for health is not an option for companies who believe in doing the right thing.
Corporate America pleeease Wake Up! Your profits will grow because you have responsible fairly paid service providers taking care of your interior and exterior carpets, textiles, floors, walls, grounds, HVAC, etc.. Government and private buildings need to follow their own LEED. Building leases need to specify healthy vacuuming and cleaning frequencies following guidelines set by the industry. Until that happens we are an industry in decline. The occupants of these buildings will be the losers.