April 12, 2002—New analysis from Frost & Sullivan North American Performance Contracting Markets reveals that performance contracting is a powerful, self-funding tool for providing facility infrastructure improvements. However, those users that stand to benefit the most are often unaware of the potential cost-savings.
According to the report, the performance contracting industry generated revenues exceeding $3 billion in 2001 and is projected to near $5 billion by 2008.
The performance contractor or energy service company identifies and evaluates energy-saving and operational efficiency opportunities, and then recommends a package of improvements that is actually paid for through these savings, avoiding out-of-pocket initial costs.
Due to lack of reliable information, says Frost & Sullivan, many users fail to realize that energy conservation measures are as valid as any other operational savings.
