Consider refurbishment over replacement

The challenges faced by the hospitality industry throughout 2009 are still ongoing, and growth in 2010 is predicted to be sluggish at best. As organizations seek to lower costs and maintain profitability, it is increasingly obvious that the concept of sustainability isn’t just of interest to the environmental lobby; it’s also good business.

It may sound harsh, but institutions in both the public sector and the private sector simply haven’t delivered with regard to sustainable development.

In public sector organizations, where future budgets are set based on current spending levels, there is no incentive to seek cost-effective methods of maintaining and managing assets. Indeed, saving money through prudent reuse and refurbishment can penalize a public sector organization. As a result, organizations dispose of viable assets and try to use up any unallocated money in a flurry of spending. The technique is wasteful, but prudent for managers in need of funding. As the nation’s deficit will show anyone, this is no longer a viable option.

The private sector hasn’t managed much better. The corporate mindset that equates ‘new’ with ‘successful’ no longer holds water. Additionally, companies have had to use outdated tax codes, designed to bolster domestic manufacturing, which traditionally rewards replacement. As a result, little thought is given to sustainability.

However, in today’s economic climate, that attitude no longer makes sense. It’s time to see refurbishment as more than ‘making do.’ As increasing numbers of companies respond to consumer-driven demand for changing business practices through triple bottom line reporting, sustainability ranks highly. By focusing on sustainability in resource management, companies save money, while increasing their standing with consumers at the same time.

The benefits of refurbishment are plain to see. Looking just at the hospitality sector, a business can save up to 80 percent by refurbishing existing assets. In a hotel of any size, that translates to big savings. Not only is it less costly to refurbish assets, it also causes less disruption.

An experienced furniture refinishing and modification company can overhaul 10 to 15 rooms per day, and the use of modern, non-hazardous chemicals during the refurbishing process means those rooms can be offered to guests the same night.

As hotel occupancy increases throughout the year, those businesses that have invested in upgrading rooms will attract the majority of customers. By opting for refurbishment over replacement, upgrades can be made at a far lower cost.

Although the recent economic climate has been challenging for everyone, it is possible to use it as a launch pad for a new, smarter attitude toward sustainability. This has rewards for all organizations, and in the hospitality sector it can lead to major cost savings.

As the economy as a whole recovers, businesses and institutions that focus on sustainability can save money and make better use of the assets they have. Whether public or private, it’s undeniable that sustainability makes operational and environmental sense.