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Most CFOs would invest in a new production machine that generates more revenue before they would replace an old chiller. Is that always the smart move?
Senior management of Fortune 500 companies, health care facilities, and colleges and universities are always looking for ways to reduce cost and increase productivity. Price increases are extremely difficult, if not impossible, to pass on to customers, patients, or students, without loss of competitive advantage. In addition, due to current economic conditions, the need for investment capital far outstrips available capital.
Senior executives realize that facility improvements and energy-efficiency upgrades have a difficult time competing for capital. Executives who also realize the importance of these projects are considering several alternatives that utilize a strategic partner's expertise in delivering efficiency improvements and cost reductions while enabling the organization to preserve their own capital for core investments. These options have been attractive in meeting a variety of business needs:
* Transferring technical, operating, and servicing risk to others
* Reducing operating expenses and life-cycle costs
* Obtaining service provider contracts that enable senior management to manage for results
* Partnering with energy experts having an equal stake in the program's results