Episode 8: Building Optimal Energy Efficiency Through a Strategic Approach & Proactive Planning

Transcript

Rob Vaughan: Good afternoon, everyone, and welcome to another episode of the First Call Facility Focus Forum. I’m your host, Rob Vaughan, and today we’re joined by an outstanding guest, the renowned Mr. Joel Lowery from the First Call Group team. Joel, it’s great to have you with us today.

Joel Lowery: It’s great to be here, Rob. I appreciate it. This may be the first time in my career I’ve ever been called “renowned.”

Rob Vaughan: Well, then you’re underestimating yourself, because today we’re discussing a topic that you truly specialize in: building optimal energy efficiency through a strategic approach and proactive planning. Joel, throughout your career you’ve had the opportunity to work with organizations of all sizes across the country. Have you ever experienced a time when energy savings have been more important than they are right now?

Joel Lowery: I don’t think so. There are several factors influencing energy costs today. Energy prices continue to rise, supply challenges remain, and grid stability has become a significant concern. The growth of renewable energy, increased EV adoption, and changing demand patterns are all affecting the supply and demand of electricity. The result is rising costs across the country, and our customers are certainly feeling that impact. This is an incredibly important topic right now.

Rob Vaughan: I’m glad you mentioned rising utility costs because many projects are driven by energy savings. With LED lighting, we often see 50% to 90% reductions in wattage. HVAC upgrades also deliver substantial utility savings. But something you mentioned is often overlooked. It’s not just about reducing energy consumption — the cost of utilities themselves continues to rise dramatically. In some cases, those increasing costs help fund rebate programs that customers have benefited from. Businesses across every industry are being asked to reduce facility costs, manage budgets, and navigate constant change. How can we best help companies develop budgets for energy-saving initiatives?

Joel Lowery: Before I answer that, I want to point out that when I think about energy, I also think about water. It’s not just electricity and natural gas anymore. Water is becoming an increasingly valuable commodity for several reasons, including the tremendous growth of data centers and their cooling requirements. The first thing any company needs to do before budgeting for capital improvements or operational savings is establish a baseline. You have to understand what you’re spending today before you can measure future savings. That’s absolutely critical. You need a clear understanding of your utility costs, operational expenses, and maintenance spending. For anyone interested in reducing energy consumption — whether because of budget constraints, sustainability goals, greenhouse gas regulations, or operational savings — I strongly recommend establishing that baseline. A professional assessment can gather several years of utility data and operational expenses to help understand where your money is going. From there, an audit can identify opportunities based on equipment age, equipment condition, repair history, and overall performance. One thing we see frequently is companies replacing compressors in 30-year-old HVAC systems. That’s like putting a brand-new engine into a 30-year-old car. At some point, you need to consider replacing the entire asset. Once you understand the condition of your equipment, you can begin building a five-year plan and develop a proactive strategy. The goal is to avoid emergency situations because equipment failures almost always happen at the worst possible time, and emergency replacements typically cost significantly more.

Rob Vaughan: I appreciate you bringing up water because that’s become a major initiative for many organizations. The way you describe this process really emphasizes the importance of taking a strategic approach. Conducting a situation analysis, stepping back, evaluating where you stand, and developing a proactive plan. That leads into my next question. I think many people hear the word “project” and immediately assume it means a major expense that isn’t in the budget. Does the word “project” carry a negative connotation today? Or is this really more about budgeting, planning, and strategic asset management?

Joel Lowery: I think it’s actually a competitive opportunity for organizations to become more strategic. The reality is that assets eventually fail, and they rarely fail at a convenient time. If you haven’t budgeted for those failures, you’re forced to take money away from something else. If every line item in your budget is important, then what suffers when an emergency occurs? There’s really no reason to put yourself in that position. If you understand your equipment, develop a capital plan, and identify future needs, you can prepare accordingly. And if capital isn’t readily available, financing may be an option. Financing sometimes carries a negative perception, but companies need to compare financing costs against rising utility expenses. If utility costs are escalating faster than interest rates, financing can actually save money. There are many financing programs available today, including both on-balance-sheet and off-balance-sheet options. Terms can range from one year to ten years depending on the project and customer needs. Projects aren’t negative if you plan for them. They become negative when organizations haven’t taken the time to prepare.

Rob Vaughan: That’s a great perspective. We often help organizations evaluate options, review financing opportunities, and develop strategies that fit their budgets. Whether you’re operating five large distribution centers or 500 retail locations, the approach is the same. When you look specifically at HVAC, what strategies are most important right now in helping businesses budget proactively?

Joel Lowery: Again, it starts with the baseline and the audit. Whether you conduct it internally or work with a professional, you need to develop a prioritized list. There may be quick wins, such as LED lighting upgrades. LEDs often provide rapid payback, improve the quality of the workplace, enhance customer experiences, and increase visibility. Start with projects that deliver fast returns, then plan for medium- and long-term investments. HVAC typically falls into the medium-investment category because properly maintained equipment often lasts 15 to 20 years. When financing is considered, HVAC replacements can become very manageable. Long-term considerations include roofs, building envelope improvements, and solar. I often describe a building as an organism. Every system affects another system. For example, when a building was originally designed, engineers expected a certain amount of heat generated by traditional lighting. When you replace those fixtures with LEDs, you’re removing heat from the building. That impacts HVAC performance. Do you now need additional heating? Does the HVAC system have excess capacity? One change can affect multiple systems, so understanding those interactions is extremely important.

Rob Vaughan: That’s an excellent point. Many projects begin as energy-saving initiatives with specific payback periods or ROI targets, but they often provide benefits beyond energy savings. HVAC projects may start with efficiency improvements, but maintenance savings often become even more valuable. LED projects may achieve an 18-month utility payback, but the maintenance savings associated with long warranties can be tremendous. There’s also the employee impact. We’ve had customers tell us, “If I had known employee feedback would be this positive, I would have completed this project years ago.” Those are benefits that people don’t always anticipate.

Joel Lowery: And don’t forget rebates and grants. Those incentives can significantly improve project ROI because they help offset costs. Organizations need to understand what programs are available.

Rob Vaughan: Absolutely. Years ago, lighting rebates sometimes covered entire projects. Today they may cover 10% to 30% depending on the utility or region. We’re also seeing significant opportunities with EV charger incentives and HVAC rebates. Joel, you’ve had an incredible career, and we’re fortunate to have you as part of the First Call team. What is your favorite part of what you do?

Joel Lowery: The easy answer is the people. Rob, you’re phenomenal to work with, and I truly enjoy collaborating with our entire team. Beyond that, technology is changing so rapidly. It’s exciting to watch innovation continue to improve performance, reduce costs, and create better returns on investment. There really aren’t bad projects — sometimes it’s simply a matter of timing. Technology continues to evolve, costs come down, and returns improve. This is a long-term journey, not a short-term one. I enjoy seeing the innovation and the talented people developing solutions that help businesses reduce costs, improve environments, and operate more efficiently.

Rob Vaughan: I completely agree. I enjoy working with people and helping organizations find the right solution because there isn’t a single answer for every customer. It’s about asking the right questions, understanding budgets, identifying priorities, and finding the best fit. That’s something our team truly excels at. It sounds like we’ll need a part two to continue this energy savings discussion, but we also want to feature many of our vendor partners and industry experts. Joel, we appreciate your time today, and we’ll definitely have you back.

Joel Lowery: I appreciate the opportunity. Thanks so much.

Rob Vaughan: Thanks again, Joel. We’ll talk soon.