Leading provider of facility solutions, ABM Industries Incorporated ABM, recently announced that it has inked a deal to offer infrastructure upgrades in Temple Terrace in Florida. ABM will provide its customized energy performance contracting program (EPC) to improve energy efficiency in the city. The company will provide its energy-efficient program to eight public buildings in Temple Terrace.
The Deal
Utilizing ABM’s advanced technology, the city will be well positioned to save over $1.46 million in energy and operating costs over a period of 15 years. The project started from Apr 2016 and will be completed by October this year.
The company’s EPC program is designed to meet customers’ technical needs and sustainability goals by significantly reducing operating costs.
To go ahead with this project, ABM conducted an extensive audit of the public buildings in Temple Terrace. Per the audit, 57% of the HVAC (heating, ventilating, and air conditioning) equipment in these buildings was either 15 years old or more with several units showing signs of degradation. Given a detailed list of the city’s assets, their conditions and expenses, the company was able to design a project plan and chalk out financial solutions to enhance energy efficiency and reduce carbon emissions. This project will help boost operating profit by upgrading HVAC equipment and adding state-of-the-art technology in these buildings.
ABM will be closely working with city leaders to gather insights about the city and its infrastructural needs. Together they will work out a financial program, using the city’s Community Investment Tax funds, to secure $3 million for driving infrastructure improvements.
Benefits of the Deal
Channeling the above fund, the city will be able to generate energy and operational savings, which will in turn finance the upgrades without burdening the taxpayers further. This investment will reap its fruits in the long run, as it will provide relief to the city’s General Fund for years to come. In addition, the program will provide more than $95,000 on an average in energy savings, which will be monitored by the company over the tenure of the contract, to make certain that the full amount is received. ABM anticipates that the operational savings will amount to more than $100,000 per year in addition to the energy savings.
The deal will help the city utilize tax payers’ funds more efficiently. Alongside, this is a long-term project for ABM, which apart from reaping profits will also augment the company’s goodwill in the market.
ABM carries a Zacks Rank #2 (Buy). Some other stocks worth a look in the industry include Owens-Illinois, Inc. OI, Apogee Enterprises, Inc. APOG and Core-Mark Holding Company, Inc. CORE. Owens-Illinois and Core-Mark Holding carry a Zacks Rank #1 (Strong Buy), whereas Apogee Enterprises carries the same Zacks Rank as ABM.
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