By Andrew P. McCoy and Fred Sargent
Published On August 15, 2022
By 2030, it’s predicted that there will be a new name for “smart buildings.” They will simply be called “buildings.”
By the end of this decade, all the hoopla about the internet of things components in buildings will go away. Real estate developers, leasing agents and others promoting commercial office buildings and multiple dwelling units will rely on other features besides “smarts” to differentiate their properties.
Bragging about the integrated systems that characterize a smart building will be reminiscent of the signage on two-lane roads advertising that the next motel has TV and air conditioning in every room.
However, just as IQs are not distributed equally among human beings, some buildings will always be smarter than others.
Looking for a business opportunity
The silently shifting but tectonic-scale threat in this future scenario is that, before they know it, many ECs could lose out on the business opportunity that lies ahead with smart building technology.
Electrical contractors that create competitive advantage through close coordination and cooperation between their new construction and service-related business units have the best chance of capitalizing on the long-term potential in smart building systems.
Classically, ECs have made their first forays into service and maintenance by hanging around after constructing a new facility. Through this experience, some have come to appreciate that over a building’s lifetime, service and maintenance revenue amounts to four or more times the value of the original construction contract—and commands a far higher profit margin.