Updating old buildings with new automation technology isn’t always a smooth ride. Oftentimes, the new systems don’t play well with the old ones or the budget has to stretch more than you’d like to accommodate the upgrades. Not only that, but you have to balance the disruption to building occupants during the retrofitting process, which can mean days, weeks, or even months of inconvenience…

This situation is pretty common for older buildings. But with the increasing demand for energy efficiency, cost-cutting measures, and convenience, retrofitting with automation has become a necessary step for many building owners and facility managers.

In this article, we’ll look at how to plan your upgrades in a way that minimizes headaches and keeps costs under control, making sure your retrofitting project is a success from start to finish.

Challenges in Retrofitting with Automation

Retrofitting old buildings with automation can mean better energy efficiency, improved occupant comfort, and streamlined building management. But it also comes with its fair share of challenges that can make the process stressful if not properly planned and executed.

In some cases, this may even discourage building owners from pursuing the project altogether. But if you know what challenges to expect and how to address them, retrofitting buildings with automation can be a smooth experience.

Here are some common challenges that building owners and facility managers face when retrofitting with automation:

High Initial Costs

Building owners often hit a wall when they start exploring retrofitting options for their buildings—the price tag. Automation systems can be expensive, especially when you consider the cost of installation, equipment, and software. This may mean having to make tough decisions on which upgrades are feasible for your budget and which ones have to wait.

It’s hard to outline typical retrofitting costs because every building is unique, and the type of automation system you choose also affects the price. As a rule of thumb, it’s safe to assume that the more sophisticated the system, the higher your costs will be.

High initial costs can discourage even the most enthusiastic building owners and facility managers, but it’s important to keep in mind that these upfront investments can result in significant savings over time, making the cost well worth it.

Budget Constraints and Cost Considerations

Not all organizations can afford a top-to-bottom building transformation — the dream of perfect automation may not always be feasible for smaller businesses or organizations with tight budgets.

While it can seem like doing it all at once is the best option, you may have to decide which areas need immediate attention and which can wait until your finances allow. This requires careful budgeting and prioritizing which upgrades will bring the most value to your building and its occupants.

Compatibility Issues with Existing Infrastructure

As new technologies are introduced to the market, you often have to “duct tape” the solutions together to make them work. Retrofitting with automation is no different. Older buildings may have outmoded or outdated foundational systems that aren’t compatible with the new automation technology, which can lead to additional costs and headaches during installation.

This often means customized – rather than off-the-shelf – solutions and a more complicated installation process.

Integration Complexities and System Interoperability

Ultimately, the goal of retrofitting with automation is to have all your systems working in harmony, allowing for easy control and management. However, bringing together different automation technologies from various manufacturers can result in integration complexities and interoperability issues.

Simply put, this can lead to inefficiency or system failures.

What’s the point of having an automated building if the systems don’t communicate with each other or work together seamlessly? This can cause frustration for both building occupants and facility managers, as well as potentially costly repairs.

Disruption to Ongoing Operations During Retrofitting

How much revenue do you stand to lose if your building is out of commission for a few days or even weeks? This is a question that building owners and facility managers have to consider when planning retrofitting projects.

Retrofitting often involves removing old systems, installing new ones, and testing and configuring the new automation technology—all while trying to minimize disruption to ongoing operations.

This can be a significant hurdle for buildings with tenants or businesses that rely on the space. During the retrofitting process, finding a temporary workspace or adjusting operating hours may be required.

U.S. companies lose a staggering $50 billion annually due to operational disruptions, which can consume up to 20% of their productive capacity. So the reality is that pausing operations, even for a short period, is rarely feasible.

Addressing Resistance to Change Among Stakeholders or Occupants

Depending on your role, you may face pushback from stakeholders or building occupants who are used to the old systems and processes. Change can be intimidating, and retrofitting with automation can be perceived as disruptive or unnecessary.

Smart building technology like automated lighting, HVAC, and security systems may require new skills to operate and maintain, leading to resistance from employees or building tenants. Some team members may be resistant to change due to concerns about job security or fear of being replaced by technology. And others may be skeptical about the benefits of automation, fearing it could compromise their comfort, workflows, or privacy within the building.

Solutions to Retrofitting Challenges

The challenges above aren’t meant to discourage building owners or facility managers from considering retrofitting with automation. Instead, they serve as a realistic preview of what to expect, allowing you to plan and address these challenges proactively.

Here are some solutions to help overcome these common retrofitting challenges:

Building Assessment to Prioritize Automation Needs

Whether your budget is limited or unlimited, it’s essential to assess your building’s current infrastructure and identify areas that can most benefit from automation. This helps you prioritize which systems to upgrade first and gives you a clearer understanding of potential compatibility issues or integration complexities.

You’ll want to ask yourself questions like:

• Which systems are currently causing the most inconvenience or costing the most in energy expenses?
• Are there any safety or security risks that can be mitigated with automation?
• What are the long-term benefits and return on investment (ROI) for upgrading each system?

A professional building assessment can help you answer these questions and determine the most cost-effective approach for your retrofitting project.

Compatibility Assessment to Determine Customized Solutions

As you assess your building, you may identify incompatible systems or gaps that need to be addressed during the retrofitting process. In these cases, working with a professional automation provider can help guarantee compatibility or provide customized solutions to bridge any gaps.

For example, if your building has a legacy HVAC system that doesn’t integrate well with modern smart building controls, a professional automation provider can offer customized solutions such as retrofitting adapters or middleware to facilitate seamless communication between the two systems.

This can save time, prevent expensive replacements, and guarantee seamless integration of all systems, enhancing efficiency and overall functionality.

Strategic Planning for Seamless Integration

Even if you don’t need customized solutions, retrofitting with automation requires strategic planning for a seamless integration process. This might involve mapping out the order of installation and planning for any potential disruptions to ongoing operations.

Working with an experienced automation provider can be extremely helpful during this step. If they’ve executed similar projects before, they can advise you on the best approach to minimize interruption and delays. They may also offer training for building occupants or employees to ease any resistance to change and ensure that everyone is comfortable with the new systems.

Choosing Scalable Solutions that Grow With You

As technology continues to evolve, your building’s automation systems should be flexible enough to accommodate future upgrades or expansions. Opt for automation systems that can grow with your needs. This scalability allows you to future-proof your building and avoid the need for major overhauls down the line.

Minimizing Disruptions Through Phased Implementation

Scalable solutions also provide a practical way to address business interruptions and budget constraints. They offer a phased approach to automation, allowing you to prioritize critical systems, test and monitor new technology, and gradually upgrade other areas as budget and resources permit.

Finding Cost-Effective Automation Solutions

Is retrofitting on a budget possible? Absolutely. Many retrofitting solutions are cost-effective and offer a quick return on investment.

Extremely simple solutions such as sensors and timers can significantly reduce energy waste, while more complex systems like automated lighting or HVAC controls can optimize energy usage and improve operational efficiency.

By exploring different market options and considering long-term return on investment, you can choose the most cost-effective solutions that align with your budget and retrofitting goals.

Using Government Incentives and Rebates to Reduce Initial Costs

With energy efficiency and sustainability becoming such a hot topic, many governments and utility companies offer incentives and rebates to encourage building owners to invest in automation upgrades.

For example, federal tax credits through the Inflation Reduction Act can significantly reduce the initial costs of retrofitting and make it a more financially viable option for many buildings.

Be sure to research the programs available in your area and consult with your automation provider on which systems or technologies qualify for local or federal incentives. This can help offset some of the costs and accelerate your return on investment.

Change Management Strategies to Address Resistance

Whether you’re introducing a new technology or implementing changes in processes, a well-planned change management strategy helps ease resistance. From stakeholders who may be wary of the cost and scope of retrofitting to employees or tenants who are hesitant about new systems, open communication and a clear explanation of “what’s in it for them” can help overcome the many objections you’ll face.

Providing training and support throughout the implementation process also allows employees to feel more comfortable and confident with the new systems. Some automation providers offer training and ongoing support as part of their services, which can be a valuable resource for building owners and facility managers who need to get “buy-in” from their team.

Benefits of Retrofitting with Automation

With all the headaches and complexities that come with retrofitting, it’s easy to question whether it’s worth the cost and effort. Yet the statistics speak for themselves:

• Energy Savings: Retrofitting commercial buildings with modern systems can lead to as much as 21% to 59% in energy savings. This significant reduction in energy consumption translates into substantial cost savings.
• Rapid Return on Investment: The typical retrofitting investment can be recouped within as little as two months to two years, thanks to the dramatic energy savings achieved. That doesn’t even factor in utility incentives that can further accelerate the payback period, sometimes covering the project’s total cost.
• Reduced Downtime: Think of ROI not just as “return on investment” but also as the “risk of inaction.” Without proper investment in control systems, the potential costs of halting production due to mechanical issues that could have been preemptively flagged are significant. With building automation, businesses can mitigate costly downtime in industrial environments through advanced fault detection and analytics. Often, issues can be swiftly resolved remotely through network logins or secure VPN connections to the building automation system.
• Operational Cost Reduction: According to ENERGY STAR findings, buildings that undergo energy-efficient retrofitting consume 35% less energy than their non-efficient counterparts, leading to a massive decrease in operational expenses.
• Environmental Benefits: Retrofitting plays a crucial role in reducing carbon emissions and supporting global efforts to mitigate environmental impact. New research suggests that retrofitting existing buildings with automation and energy-efficient systems could cut CO2 emissions by up to 70%.
• Increased Property Value: ENERGY STAR research demonstrates that energy-efficient buildings boast a 10% higher occupancy rate and command a 16% premium on selling prices.
• Improved Occupant Experience: Implementing advanced technologies through retrofitting, such as smart HVAC systems, lighting controls, security systems, and superior insulation, significantly improves occupant comfort and satisfaction. Labor shortages and health concerns have increased the demand for smart building features, making retrofitted buildings more attractive to potential tenants and employees.

With the right approach, retrofitting with automation can offer significant long-term benefits for commercial buildings of all sizes and industries.

It’s not just about energy savings and short-term cost reductions — automation can also positively impact property value, the occupant experience, and the environment as a whole, making it a worthwhile investment for building owners and facility managers.

Overcoming Retrofitting Challenges with Lee Company

At Lee Company, we understand the complexities and opportunities that come with retrofitting commercial buildings with automation. Our Smart Buildings Group is at the forefront of transforming spaces in Tennessee, Kentucky, Alabama, and Georgia, making sure that every project is a step toward modernization and efficiency!

Take, for example, our case study on the EMJ Parkridge Hospital in Chattanooga, Tennessee. Our team tackled the construction of a new chiller tower, overcoming challenges such as limited space and the need to keep the hospital fully operational. Through meticulous planning, 3D modeling, and scheduling work during off-hours, we minimized disruptions and delivered an award-winning project.

At Trevecca Nazarene University’s Jernigan Student Center, we executed a comprehensive renovation that enhanced the student experience without exceeding budget or timelines. Our solutions exceeded the university’s expectations for space utilization and environmental control.

We pride ourselves on designing, installing, servicing, and maintaining systems that optimize functionality and reduce operational costs. Our years of experience in automation for a wide range of industries and building sizes showcase our ability to navigate all the retrofitting challenges you might encounter.

Trust Lee Company’s Smart Buildings group to make retrofitting with automation a success for your building, too. Contact us today and start planning for the smarter future of your commercial space!