The McMahon Report December 2023

6 The McMahon Report® every operating efficiency has to be studied. We have to evaluate and utilize all options to keep operating costs as low as possible, so we are not priced beyond what our members can afford to pay. CLUB BUILDINGS ARE BIG ENERGY USERS So let’s look at the efficiency of our club buildings and facilities, as buildings across the world account for 60% of all energy consumed. Yes, we did say 60%, and this includes not only the energy consumed in operating buildings all year long, but also the embodied energy that’s consumed when making all building components (brick, glass, concrete, aluminum, equipment, steel, etc.) as well as the energy required to erect buildings. Constructing and properly maintaining buildings is the first place a club should study in conserving energy and saving our planet. T he news media today is filled with persistent messaging on spending our money on green buildings, carbon footprints, electric cars and on and on and on. And while their goals are to have a safer, cleaner, healthier world, few of the climate experts talk about the true costs to achieve the goals they are promoting. We are getting a one-sided viewpoint. In our club industry, with its mostly not-for-profit tax status where we cannot write off depreciation and operating losses like taxable entities, we have to inflate our dues to pay our rising costs of capital expenditures and operations. So when members ask, “Why don’t we do more to be energy-efficient?” they usually have no concept of the costs to accomplish this. And with continuing high inflation affecting every aspect of our economy, especially for club operations with at least 60% of all expenses being labor-related, by Christian Clerc, McMahon Group and George Brill, Talisen Technologies However, in approaching an energy goal for conservation, we must use common sense to tackle the challenge and get past all the media hype. Yes, it is glamorous to talk about saving the planet with solar panels, windmills, geothermal underground systems, etc. But let’s be honest: For the average club without federal, state or local energy subsidies, and especially for private clubs, such energy-saving strategies rarely make economic sense. Energy-saving programs rarely are a good financial investment for a club, nor do they truly do as much as promised to help the overall environment. Most energy-saving promotions will struggle to find any true financial savings as they conveniently forget to include the embodied energy that is required to make all of the energy-saving material and equipment that newly installed systems require. Nowwe are not saying energy conservation is bad or not desirable. What we are saying is that there is a much more common-sense way to approach energy conservation and environmental impact. CLUB ENERGY MANAGEMENT The Common-Sense Approach to Energy Management and Conservation for Private Clubs