In this episode, Tom Kay talks about how FM teams can gain more visibility, more confidence, and more impact. With the rise of AI and smarter asset management, we have a real chance to change the perception of Facilities being just a cost center. Instead, it’s a strategic driver of brand outcomes.
Tom Kay says the industry is at an inflection point — with technology, talent, and consumer expectations all shifting at once. Tom describes how facilities can shape the customer experience every day, and has never been more essential. The teams who embrace data, modern tools, and continuous upskilling will lead the next chapter of the built environment.
Welcome to Elevating Brick and Mortar. A podcast about how operations and facilities drive brand performance.
Today, we talk with Tom Kay, managing partner at Efficio Advisors. Efficio partners directly with CEOs and boards to cut through distraction, mitigate risks before they surface, and unlock sustainable growth.
TIMESTAMPS
01:18 - About Tom
04:20 - Advising the industry
12:34 - Is FM misunderstood?
18:00 - The talent gap
31:00 - The impact of new tech
45:35 - Future thinking
52:42 - Where to find Tom
53:09 - Sid’s takeaways
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[00:00:00] Welcome to Elevating Brick and Mortar, a podcast about how operations and facilities drive brand performance. Today we'll hear from Tom Kay, managing partner at Efficio Advisors. He'll talk about how FM teams can gain more visibility, more confidence, and more impact today. Now, here's your host, Sid Shetty.
[00:00:19] music break
[00:00:20] Sid: Hello everyone. Welcome to season five of Elevating Brick and Mortar. Thank you for joining us. I'm here today with Tom K, managing partner at Officio Advisors. Tom, welcome.
[00:00:32] Tom: Welcome. Thank you so much, Sid. Thank you. My fellow Texan. Thank you for having me. And congratulations on five years. I think that's like what, 35 dog years. So,
[00:00:41] Sid: I appreciate that. You know, it's funny, it's, I think officially we are, we in our, we think maybe we might be in our three and a half year mark, but five seasons. So, uh, I, I appreciate that, Tom. Thank you.
[00:00:54] Tom: Okay. Right on.
[00:00:55] Sid: Yeah, yeah, for sure. Um, well Tom, first of all, you know, you and I have known each other for a very long time, so appreciate you being on the show.
[00:01:03] I love that you're here. Would love to, you know, have a great conversation today, which I'm sure we will. Uh, but for folks who might not be, you know, fully aware with your work, tell us a little bit about yourself and, uh, and then we'll dive into official advisors as well.
[00:01:17] Tom: Sure. Uh, well I've been in this space an awful long time, and as you mentioned, I think, I was trying to think back when you and I first met, it's probably close to 20 years. Um, but I've always been in the technology space for some, some form or fashion. I cut my teeth, uh, at Nextel, so telecommunication some 25 years ago.
[00:01:36] And it's funny, I was thinking this, uh, I was at Plantation, Florida at the Motorola Conference and David Poplar from Corrigo approached me, and at the time I was over all of Nextels construction verticals. So I had all big construction, industrial construction, and then residential construction.
[00:01:54] And at the time, David and Corrigo were pushing their mobile app. So 20, 25 years ago, a mobile app being put in my hand, uh, and of course, uh, runs parallel to the efforts that you had at, at, uh, service Channel and still do. But I've been doing some type of technology in the space for, for those 25 years if it's not in, um, you know, CMMS, it was certainly in EMS.
[00:02:16] Played an IFM company for about four years, uh, and then stood up Officio Advisors about, hmm, two years. Right. So Officio is just that, an advisory firm. Uh, we work with a lot of startups and enterprise companies. Primarily in technology, but all around the built environment.
[00:02:34] So everything from E-M-S-B-M-S-C-M-S-I-A-Q, uh, supply chain, uh, more and more about ai. So agentic ai, we work with three companies that are doing agentic ai and then we're very fortunate, and it's a fun role to have, is we work with PE and VC firms to kind of evaluate technology. So we often get a shopping list or a, you know, a Christmas list to go out and look for technology.
[00:02:59] And so that's a fun thing to do. And I guess from where I sit today, what I love is, and this is probably not the best analogy, but I can go into an organization, evaluate their technology, and I'm, it's okay if I tell 'em their baby's ugly, uh, without risking retribution, right? So that's one role I enjoy very much.
[00:03:18] Sid: Yeah. So what inspired you to do something on your own and, uh, what's your North Star?
[00:03:23] Tom: That's a good question. I mean, I think for me, I had always been, uh, I, like I said, I consider myself a technology nerd and, and now more and more an AI nerd. Um, but I really felt like I could do more if I was able to be, uh, not maybe shackled to an enterprise and actually go out and try to evaluate technology on my own and also really try to find, uh, the opportunity to help companies scale.
[00:03:45] So I love what I do and I love, you know, My North Star is really creating value for people. If I can create value for people every day, then I can sleep well at night and know that I've done my best and, and really enjoy doing that. And like I said, technology is what I kind of eat and drink and sleep. That's all I do, is technology.
[00:04:00] Sid: Yeah, so I mean, you worked, you, you're working in tech. You've worked in tech for a long time.
[00:04:04] Tom: Mm-hmm.
[00:04:05] Sid: You've also worked as a, a service provider, in an IFM business, you've worked for energy management, um, in the energy management space, um, and now you're doing advisory. How has that shaped your perspective on the industry as a whole?
[00:04:20] Tom: You know, it's, it's interesting question 'cause I think, You know, when you're in a defined role, uh, regardless of where you work, you kind of have your blinders on and your focus primarily on what that solution is and where that, you know, go to market is. But when you are able to take those, you know, that lens and look through it as a much broader industry view and see where the applications are and see where the opportunity is and see where the needs are, um, that's kind of unique.
[00:04:43] Um, I, I think what, What excites me about the industry is that, you know, historically technology is not necessarily, well, I'll, I'll step back depending upon the vertical, um, technology doesn't necessarily accelerate at the rate that you and I see on, on a day-to-day basis, but there's areas of the built environment, and that's kind of what I was talking about earlier, about participating in the, in the Future Built Event in DC last week was the idea that there's a, an opportunity for, for the industry to look at technology as a whole and really be agnostic to the technology and see where the opportunity and value is. So for me, longwinded answer to your question is that I get a better view of the industry from 30,000 feet than I would be if it was across the street.
[00:05:22] Sid: You know, as someone who's been in the industry for a very long time, you know, what impact do you think our industry has on commerce as a whole, or, um, you know, the whole idea of how our, the businesses we serve, interact with their consumers?
[00:05:37] Tom: Well, I mean, it's critical. If you look at the FM space, I mean, that's really the first line of defense for most of these brick and mortar businesses. And so if you don't have an established, uh, internal FM team or external force to support the FM services, you really run the risk of jeopardizing your brand. And, and it's a real issue. Uh, you don't only do that, you also have the ability to mitigate risk, which also could impact the business as a whole. So I think it's critical. Uh, FM is a huge component of that. And I also think. You know, even with the e-commerce, the, the, the rise of Amazon, it's still, it's still critical at the, the storefront, the brick and mortar, uh, the, the face-to-face interaction between a consumer and a brand has to be established and strong for anyone to really consider that, uh, long term, right?
[00:06:23] So in many cases, these people are actually shopping in person, but buying online. Um, so I think there's, you're never gonna have this idea that everything will be online. There's still a need to have that face-to-face interaction with a human, and it's critical that, that when they go there, their experience is just paramount, is, is critical. So FM is the one that drives that.
[00:06:44] Sid: Yeah, I couldn't agree more. If the brick and mortar spaces were not critical in driving growth and driving the, the, the agenda of your brand, uh, or the delivering on your brand promise, we wouldn't have so many traditionally only e-commerce businesses open these many brick and mortar sites.
[00:07:04] Right. And at the same time, you know, there's actual studies that are done that shows that even if you are driving a lot of traffic to your e-commerce, um, site, your cart size, the consumer cart size actually gets bigger if you have a physical brick and mortar site in the vicinity of that consumer. Which is fascinating, right?
[00:07:27] Because I think it ties into the comfort that the consumer has that they can just drive, and return something. Or if they find something they like. And it is available in the store, they can go and do that. So it's not one experience, it's an omnichannel experience and you kind of have to have both.
[00:07:43] Right. And anyone saying that traditional brick and mortar is dead is, has no idea what they're talking about. Would you agree?
[00:07:50] Tom: I totally agree. And I think, you know, opt the optics of seeing, uh, stores shuttered, you know, Starbucks or you name it, um, that's a right sizing of the business. They'll rightsize and then they'll continue to scale. I mean, I know so many people in that, in that space that do the exact same thing where they say, listen, we'll pull back, we'll clean our business up, we'll clean our back office up, and then we'll start scaling again.
[00:08:12] And I think, uh, the FM is critical to that piece as well, because if you're really utilizing some of that repair and maintenance data, uh, associated with a site, and you're able to do now more predictive analysis that drives better capital spending. I mean, that's, I mean, you, you and I have been doing this for so long.
[00:08:29] Anything that we can do, uh, as an industry to elevate the FM to be seen more than just a cost center. 'cause today they're basically a cost center. Great value to, to the industry. So if we can elevate them, get them a seat at the table, uh, and really, uh, provide them with a, a higher level of, I guess, what you'd say, uh, power, if you would, in the space with their leadership team, I think we would've done a great job.
[00:08:54] Sid: No, I agree. And I, I think it's important, you know, I think both of, uh, us are making the same point, which is, you know, retail as, as a business, as an industry always has to evolve and has to adapt to the consumer behavior and to, uh, the markets. And so. If you don't do anything with how you are looking at your entire brick and mortar strategy or e e-commerce strategy and just, you know, wait and hope things will pan out, you are gonna be in trouble, right?
[00:09:25] Any good business is all the time looking at their locations, looking at their leases, making sure that they're in the right places and in the right, uh, areas and sites that drive traffic are in line with the kind of exposure that they want to have, and then they're optimizing, right? And so even when you hear in the news that, you know, certain businesses closing a few locations gets sensationalized, and it sounds like that the brand is in trouble, but I don't understand that because it actually, it's a good thing.
[00:09:59] If you don't do that on a regular basis, then you end up in a situation where you end up closing 20% of your locations because that was long overdue. Like you wanna actually constantly. Adjust the locations you're in. And then I was talking to, you know, a couple of folks and one of them being the president of ICSC, Tom McGee.
[00:10:18] And you know, he was saying, you know, it might appear that there's a lot of vacant lots and a lot of vacant spaces, but that's actually not true. You know, good, good spaces are very difficult to find.
[00:10:30] All the same businesses are fighting for the same, uh, you know, uh, top grade spaces that have the right visibility in the right places and, and can have, um, alignment with their growth strategies.
[00:10:30] And so it's difficult for businesses to actually find amazing spaces and then stay in them with, you know, evolving rents and evolving, you know, uh, lease complexity and, and so on and so forth. And so, you know, You'd expect that brick and mortar is always adjusting. And a big part of that is the facilities team, because you have to make sure that you know exactly what you have to do with those spaces and how you take care of them.
[00:10:42] 'cause ultimately, if you have great spaces, but they don't look good and they're not welcoming, no one's gonna walk in or it's not gonna really help you, uh, you know, get the kind of consumer mind space that you're looking for. Right.
[00:10:55] Tom: Yeah, absolutely. I think too, from an FM perspective is that these, most of these businesses run on such razor thin margins that if, if, if you, if your FM team is, is on top of things and they're driving waste out of the business and reducing maintenance cost and extending asset life to a low margin business, they are the heroes of the business.
[00:11:17] And, uh, they don't get enough credit. They should, um, but they don't. But, uh, God forbid, if something was to happen at the site, uh, they would be the first one who's next in the news. People lose sight of the fact that facilities do, uh, really add incremental lift to the bottom line if they're doing their business well.
[00:11:35] Now, granted, in some cases, folks are, are, uh, deflecting some of the, the maintenance need to be required to, to keep that asset, you know, solid. But for the most part, if fms are doing their job, they're creating incremental value every day of the week.
[00:11:49] Sid: Why do you think facilities is misunderstood? I, I don't think that facilities gets its due, and I think you agree with me, right? We have talked about this, you know, the industry as a whole, you know, I think has a massive PR problem because we do position ourselves as a cost center. We do position ourselves in many ways.
[00:12:05] And, you know, I kind of oversimplified when we say that we are the fixer upper department in many ways because we fix broken things really fast. But that's not really the impact. That's just one of the things that facilities does. But yet, you know, if you were to ask anyone outside, you know, the particular function and the, the role itself, it's not fully understood, right?
[00:12:27] The impact we have on the brand and the consumer expectations and, uh, the brand promise, if you may, right.
[00:12:34] Tom: Yeah, no, we, we have talked about this before and it isn't an image problem, and I think it's really maybe just a lack of marketing that better or advertising that better. We've got great associations, obviously very familiar and connected with Connect fm, ifma, boma. Those organizations do a great job of trying to educate the fm, but I don't necessarily see too much education and content and driving value, but how to market their selves within their own organization.
[00:13:00] Where we as an industry may have fallen down there is how can we, uh, upskill that FM to the point where they are at a seat of a table, uh, with a senior leader and they can speak intelligently about the portfolio and, and the value of driving, re reducing risk, and extending asset value.
[00:13:20] And all those things that further elevate their position in the organization, but also reset the definition of FM with their own organization. And I think some people do it really, really well and those who do it really well are rewarded. Those who may have not done well probably get that, you know, that black eye and that's what often is associated with this call center.
[00:13:40] Sid: I think even the folks that are in the space and do the job and should be speaking about what they do differently, I feel even, even sometimes they're not fully convinced the role that, that the impact that they make. Right. Um, because, you know, we tend to, you know, get stuck in the nature of our business, which is, you know, reactive for, you know, in many cases there's always an emergency, there's always a fire somewhere.
[00:14:06] But what do you think it takes to shift the narrative, even with our own folks, the leaders in our space that, you know, are out there spreading the, the narrative and spreading the message? How do we not only empower them, but also everybody else in the space to talk about the, the industry differently?
[00:14:24] Tom: Well, I think it comes from, uh, those trade associations that we're a part of. I think, uh, you know, they, they have the magni phone or the, the microphone to really articulate the value of the, uh, associate within the industry. Um, so I think the association trade associations could do a better job of trying to kind of amp up and define what an FM is and what the value is.
[00:14:49] And I, I agree with that. Some people. Take it upon themselves is that their position doesn't really matter in reality, it's critical. Uh, so I think, uh, just just giving them the tools to, to understand the value of where they fit in the organization, I think would be critical. Um, I don't think the communication necessarily takes place between the C-suite and the FM community, and that's a shame.
[00:15:13] Uh, I think those large organizations and, and you know, some of the people I'm talking about who really carry a large portfolio, they kind of carry a little bit more weight in the organization, maybe just because of the retail math of the assets they manage and the sites they control. Um, but that should be, uh, across the board regardless of the number of sites.
[00:15:31] And that's just a shame. But I think back to your question, I think it really has to do with the trade associations really, um, trying to do their best to elevate that person within an organization.
[00:15:41] Sid: Yeah, I agree. I mean, look, in the past, you know, 20 years that I've been in this space, I've had the, the good fortune of meeting amazing people. And I can tell you, and you, I know you agree that, and you're in a tough spot, like having facilities and the, the folks, the kind of persona that sits in facilities in your corner, you'd do pretty well if you had that because folks in facilities don't have an op an option to give up, or they don't have the option to just say, I don't have the time right now.
[00:16:09] I'm just gonna, you know, go to bed or whatever. Like ultimately, you know that if you don't, if you, you're the kind of the last defense, right? If you don't actually do what you gotta do, the store, that store doesn't open, or that store doesn't close, or that, that massive flood in your store doesn't take care of itself, right?
[00:16:26] I mean, you have to be of a certain type of mindset to be able to say like, I'll be available whenever I'm needed. Right?
[00:16:33] Tom: Yeah, no, I mean, they're the, the Jack of Trade, uh, they're the Swiss Army knife. They don't get credit for the value they are to the organization. Um, and uh, that's a shame, like I said. But I think also, um, just the skillset required to be an FM is unique. I don't think anybody, you know, woke up one day and said, I'm gonna be an fm, but when they are there, they have to react.
[00:16:54] Like you said, they, they chase fires all day long. Uh, they have to address issues. Nothing seems to be unique. I mean, I mean, it's, it's a situation where they, they have to think faster on their feet and, uh, if, if their decision is, is missed, um, things can happen in a very negative way. So I, I can't imagine some of the pressure that's on some of these people.
[00:17:16] And you're right, they're working 24 7. I. I don't know how much of a life they have because they live in such a reactionary world.
[00:17:23] Sid: No, for sure. I mean, speaking about just the persona, you know, let's talk about talent, right? Um, whether it's talent in the facility space or talent in the trades, you know, a lot of folks in facilities may have fallen into the, into facilities, you know, kind of found their way through operations or construction or um, and so on.
[00:17:41] And you know, I think now with the past few years, there's a much more concerted effort to actually have programs in, in universities and schools where you can actually study to BNFM. And those are great programs and I'm so excited about that. But also, like in the trades side, there's been, you know, huge challenge in, when it comes to talent, right?
[00:17:58] There's a large portion of the techs in the field that are retiring, have retired or about to retire in the next three years. And it's a pretty big percentage, right? I think I had, I had read somewhere that I. Over the next five years or something like that, like I think half the folks are, are, are gonna retire.
[00:17:58] Right. What, what has led to this gap? What has led to this situation?
[00:18:00] Tom: Well I think we as a, a society kind of took our eye off the ball. When we were kids there was always a, you were learning shop or trade in high school, and that went away. And now people are realizing, well, gosh, let's try to put that back. So I think you do see that back in the curriculum. I think you do see the rise of trade schools.
[00:18:19] I'm fortunate enough to sit on Connect's Foundations scholarship board, and, and we actively, uh, work with about 90 trade schools, uh, and try to offer to those, uh, trade schools. Uh, financial assistance and tuition for people who want to get in the trades. And so I, I'm, I'm thankful that I'm part of that.
[00:18:38] And I think, you know, when I first started on that board, uh, you know, that number was, you know, a 10th of the size it is now. So the word is getting out and, uh, the industry itself is committed to trying to fill this gap through. And if it's throwing money, they're throwing money, but they're, they realize that there's, uh, a need for this. There's certainly a need to promote it, right? So there's an issue there that we don't actively promote it and try to drive value into it. Uh, I'm also sitting on the board of a group called Stacks and Jewels, and I don't know if you're familiar with Stacks and Jewels, but they too are trying to fill that gap primarily in the building automation space.
[00:19:12] Um, but they're going into underserved communities and really trying to upscale those individuals to a role within the, you know, controls platform. And that's exciting to see. Um, you know, we worked with Mike Rowe and his foundation when we were both on the board of Conex. It's an awareness issue.
[00:19:30] And thankfully that Mike Rowe has got a platform to really promote the fact that the issue is there. It's staring you right in the face. Uh, and we have to do something about it. Now, what we also have the opportunity to do is to work with the manufacturers and the OEMs and the service field service providers who are trying to fill that gap as well.
[00:19:51] And they're doing their parallel efforts or trying to grow it internally with their HR teams or, or maybe doing some, you know, trainings on site and things like that, or internships. But I don't think they can reach the scale that they need to unless they align themselves with an association like Conex, like connects, like fma, like Boma.
[00:20:10] And so we just have to keep fighting and I'm, I'm confident we'll get there. I mean, we're a smart group of people, so I, I'm pretty sure we'll get there. Um, but that's kind of my 2 cents.
[00:20:19] Sid: if you look at the narrative though, like if you, um, see where we are today and kind of what has led us to get here, you think that narrative is changing around like, oh, only a four year degree matters now. Or, you know, trade schools are great and you know, you can actually have an amazing career as someone in the trades.
[00:20:38] You think that narrative is changing and you think that the younger generation is once again coming back and getting attracted to, um, having a successful career in the space?
[00:20:51] Tom: I think they are. I mean, I think over the last, what, 5, 6, 7 years, uh, we've kind of seen this narrative change, and I think there's enough. Uh, I think a groundswell, uh, of, of activity that says you don't necessarily have to go to a four year college to find value and worth. God forbid you go to a four year school and you get out and you're, you're not really, uh, a job's not waiting for you and you've got four years of tuition to pay off.
[00:21:16] Very few actually land a job right outta college. And those who do are fortunate, but if you're in the trades and you're committed to that, uh, you really have a path forward to really, uh, excel. The average FM being 56 years old and they're gonna phase out in five years, um, you know, I would say because you and I both are in the technology space. Technology in the hands of a field. Service tech has not always been an easy migration or transition or integration, right? So they, they've carried a, a wrench on their hip. Now they're at a director level. Um, they're somewhat averse to technology. They shouldn't be, but they are, uh, in many cases. And so when you think about a younger workforce who grew up with a mobile app in their hand and understand the value of technology and the ease of use, they're much readily to adapt to that.
[00:22:02] And I think when you think about technologies that are supporting the FM space, things that we work in and things that are on the horizon, you've got, uh, a workforce that's willing to adapt to that technology and accelerate that technology. And really drive value in the organization where they may have not been in the past.
[00:22:18] So when you think about coming up in the trades, it is not necessarily sexy. Um, but it certainly does create value and it is a path forward and it does create some, some successful, uh, opportunities for that individual. And the revenue, the ability to make money in the trades is there.
[00:22:34] In fact, I would even venture to guess that those who are in the trades are turning work away because they either don't have the time or they don't have the internal resources. So it's not a issue, like the work is there. So if that's driving revenue and value for that organization, then they'll find a way to fix it.
[00:22:51] Sid: Yeah, no, I agree. And this, you know, like you said, there's a lot of organizations now doing a lot more to make the path to entering the trades easier, more attractive. And, and there's a lot of scholarship programs that you are part of as well, you know, that I think that that's happening in this space.
[00:23:07] And I think there's also, you know, a bunch of, you know, brands that are stepping up and, and doing a lot more, uh, to hire folks into the space, train them, educate them, get them certified, um, and, you know, have them work for them, you know, for a few years. And then get them on this journey where they can go wherever they want. The brands are helping kinda fill the, the trade deficit as well, right.
[00:23:31] Tom: Yeah, totally. I mean, like I said on the, on the manufacturer side, we see it, uh, within the foundation, uh, for their willingness to either. Put some money towards, uh, scholarships or just to help try to, uh, introduce the program to their, uh, network of potential candidates or interns. I mean, the ability now, uh, post COVID to train through Zoom or, you know, whatever it might be is, is critical.
[00:23:58] You do see a lot more online training, right? Uh, so. Companies are investing in creating some, you know, library of content that can be consumed at, uh, at a level that they've never seen before. Uh, with the sole purpose of trying to elevate, uh, this individual to be equipped to train and, and work in their bus business.
[00:24:18] Sid: They all great things and I, I do agree that it'll make a huge impact. Let's pivot a little bit, right? Um, you know, like we, we both know, like facilities management is a complex business and, um, can tend to be reactive if you don't have the right program, the right tools, the right people and the right technology, um, that can be rough, right? It's like always chasing fires.
[00:24:40] Tom: Yep.
[00:24:41] Sid: How does one essentially not do that? How does one get out of, of that chaos and always chasing, um, the eight ball, if you may.
[00:24:50] Tom: The idea that there's such a need for collaboration more so than ever before between a service provider in that facility team. You think about it, um, maybe in the past, the FM team would've bought a technology Black box, dropped it in their organization.
[00:25:05] Find out and fix it yourself. Learn it yourself. Try to utilize yourself. And I think now there's a lot more of that fm leaning back into the service provider who created that technology and said, listen, um, I don't necessarily have time for a portal or a dashboard or a password, but I really have the time for an outcome and I need you as a service provider to really help drive that outcome.
[00:25:26] So I think the communication is critical, and I think it's much more prevalent now than it was in the past. And the other thing too is you, you do see more and more organization outsourcing functions of FM to a service provider who's maybe that's their core focus, right? So if you're talking about trying to move from a reactive state to a pro, you know, preventative, ugh, proactive state then data's gonna be critical to that.
[00:25:49] And not just data, but actionable data, right? So you have to have the ability to create some actionable data that drives the outcome that you're looking for. And I think, you know, those established FM teams who really understand the value of the asset solution software that they're using, you see them and they're, you can, you can call them out 'cause they're really good at what they do, but I would say the vast majority of 'em still struggle with technology and they really don't see the full value of it.
[00:26:16] I mean, they're no different than you and I, we probably use 1% of our phone. Um, I think most people adopt A CMS and E-M-S-B-M-S-I-A-Q, they're only using a sliver of what the value is and they really need the service provider to come in and come alongside them and just help them, uh, achieve the outcome that they're looking for.
[00:26:35] Sid: Yeah, no, I agree. You know, do we truly get into like a proactive state? Um, you need to know all your assets, you need to get, you know, all your assets connected in some way, you know, leverage IOT and then leverage energy management solutions. Um, you need to service automation platform or CM MS platform and, and have the right providers, right?
[00:26:54] This is a journey you need to get started somewhere. Right. Uh, you know, in, in your view, like when you look at the industry as a whole, you think that that is kind of something that people are more, um, aspiring of. Like, are they, are they getting there where they are starting to like build the necessary momentum to, to start the journey?
[00:27:14] Tom: I don't necessarily think, uh, most organizations have the bandwidth, the understanding, uh, it's not their core competence to take on technology just for the sake of taking on technology, and they really do rely on the service provider. So I do see, uh, a path forward, um, and I do see the service providers leaning in more.
[00:27:36] I do see that it's not necessarily a software as a service. I promote this outcome as a service model. Seems to be what's transitioning in the space. And I really think that if, if you look at it through the lens of an outcome, uh, and work backwards, I think you're much more effective in the way you do your business.
[00:27:52] And we haven't even begun to talk about AI and what that does to that space and that, that value of technology. But I guess, you know, those organizations that, that see the value of technology and are willing to embrace it and willing to lean into the service provider will be rewarded. Those who bought a product sit on that product, assume that they can do a little bit with the product, are not gonna take full advantage of it, and they're gonna be penalized.
[00:28:17] Sid: Yeah. And we'll talk about technology and AI in, in, in just a little bit. But for somebody who, who's in our audience that, that this resonates to, right? They're, they understand that they're still in the early parts of their, of their journey and they're trying to build a business case of saying need to get started somewhere,
[00:28:35] Tom: Mm-hmm.
[00:28:36] Sid: you know, you and the advisory role that you have and, you know, you've been in this space for a very long time. What advice would you give them to say, here's how you get started, here's how you build the building blocks to kind of start putting a program together. And, you know, you don't have to start on assets on day one. I mean, that assets can be complicated, right? But, you know, it could be a great way to start. 'Cause that's essentially what it's all about. If you know your,
[00:28:59] Tom: yeah, exactly
[00:29:01] Sid: you're, you're already kind of, you know, one fourth grade there if you may. But you know, what, what are your, what are your thoughts?
[00:29:07] Tom: Uh, first I defer going back and leaning in on the association. Getting involved in the association sharing best practices with your peers is a huge way of which to kind of accelerate, uh, your ability to, to succeed. So I would certainly say if you haven't done that, or if you haven't joined an association.
[00:29:25] Get involved, uh, and join. Um, and then I think the obvious one would be is just to evaluate your business. And like you said, you can certainly start at assets, but you don't necessarily have to. I think working, uh, evaluating your workflows is critical. Evaluating where those points touch the service provider or the third party and what, what, what you're looking for there.
[00:29:46] Um, obviously a communication with senior and leadership to say, you know, what we are as a business, what we are driving for as a business, and see where that, that FM plays in that role is critical. Um, and then, you know, just taking it day one step by step. I mean, you, you've got to start somewhere and I think people are, are scared to jump in.
[00:30:08] I would say jump in. And, uh, and not feel like you're necessarily gonna get slapped on the wrist. Um, and I think really have the ability through your connections in the industry, uh, that they can kind of help shepherd you along. I would also say get engaged with a mentor or a mentee, you know? Right. You don't have to reinvent the wheel.
[00:30:25] Right. You just need to have somebody tell you how to do something and take it. And then again, now you can leverage AI to do a lot of training for you as well.
[00:30:34] Sid: Yeah, I, I agree. Everything you said, you know, I, I think you said a very important thing, which is to kind of get alignment from senior leadership on like, what, what's the brand about, right? Because ultimately, I think, you know, if you align the goals that you're trying to achieve with the goals of the business, you are already, you know, halfway there, right?
[00:30:53] Ultimately, if you try to make your program all about making it better for the fms or fixing broken things faster, like you are not gonna be able to get started. If your goal is, you know, as business to grow your brand awareness, bring more, um, consumers into your space, have them spend more time in your space.
[00:31:13] If it's, if you're a restaurant like, you know, have more tables occupied, spend more time at the table, like, order more food, enjoy, you know, your time there. Don't just come back once, come back, you know, four times, five times for the, for the rest of your, of your, of your life while you're in that, in that area.
[00:31:13] Then all of a sudden, you, the narrative of facilities and the impact the physical space has on the brand has a much bigger impact than hate costs us $300 to repair, you know, a broken faucet. And if you don't have a system, it'll cost you 400. That's really not the, the talk, right. That A CFO might, you know, care about. It's, hey, people are walking into your, your restroom and if your bathrooms don't look right, people are wondering what your kitchen looks like. Right. That, that's a different narrative.
[00:31:45] Tom: It totally is. I mean, I think if you have a leadership team that believes in the value of that organization, the FM organization, and, and really does top down tell them what the value is, as opposed to just hiring an FMT to plug a hole, right? It just doesn't make sense.
[00:31:59] Sid: Yeah, so let, let's talk about this massive convergence of technology and AI that's happening in this space. It's happening across all industries, but very much so in the built environment as well. You know, broadly speaking, what's your perspective on just this, the influence it's having on how we're all thinking about our industry as a whole?
[00:32:19] Tom: You know, it's interesting because I'm so close to it. I see the immediate value every single day, but when I talk to people, and I literally was on the phone on Friday with a organization and they were like, I'm, I'm fearful of ai. I don't necessarily know where to start. I don't know how it applies to my business.
[00:32:35] And, and I think those people are, are, if they don't get involved and get engaged in where AI fits in their world, uh, they'll be severely hampered and handicapped. That being said, what, you know, what I see from the advisor lens is you probably have two camps. You have the group that says, uh, AI has value to us. Let's bring it in-house. Let's establish it. We'll put guardrails around it. It'll, and we'll start using it and we'll be moving forward as a AI enabled company. There's one, the other one says, AI is not our core competence. We see the value of it, but let's leverage a third party to come, come in here, evaluate it, and then start implementing AI as they direct us to do.
[00:33:16] And those are the two kind of buckets I see. I'll honestly say probably more in the bucket of bringing in a third party service provider that specializes in enablement of ai. To kind of really drive that twofold. One, that's their core competence. They know what they're doing. Other is, if you're the company, you can put a neck around that noose and say, listen, these guys, if they fall, it's not my neck.
[00:33:38] It's their neck. But on the FM side, uh, you know, again, establishing guardrails, making sure that you mitigate as much risk as possible. I think, uh, really have a, a strong message to your team as to where AI plays, not just encouraging them to go out and just, you know, put, uh, corporate information chat, GPT that's unprotected and doing something silly like that.
[00:34:03] But a lot of people are doing that 'cause they've never been educated on the, on the severity of risk. Associated with that, but those who kind of create their own LLM or large language model, or create their own company slash GT to drive value, there's tremendous value out there. And, uh, I think what you'll see is, uh, buyer beware as well is because I think a lot of people are putting AI on everything, right?
[00:34:26] It's an,
[00:34:27] Sid: aI and everything.
[00:34:28] Tom: and, uh, in that particular case, it's buyer beware because there is a lot of pixie dust, uh, salesmen out there pushing this stuff and determining who's, who's legitimate, right? Who's, who's experienced, and who can help do this. Um, so I, I see the future as very bright. I think it, it accelerates so many efficiencies in a business.
[00:34:49] It allows you to look at your business through a unique lens, uh, and really take advantage of it. It's the greatest thing since sliced bread.
[00:34:58] Sid: Yeah, I mean, there's no option to not embrace ai. I mean, you don't get to, you know, put your head in the sand and say, this thing goes away. It's not going away. Either you either embrace it and you, you make it a massive tool in your tool belt and actually help accelerate all your, you know, goals or someone else does.
[00:35:17] Tom: Oh, absolutely. Yeah.
[00:35:18] Sid: Not only is there expectation that we move faster and do more and leverage, you know, AI to deliver great outcomes for our customers, but also, you know, brands and companies are asking their own internal leaders to ensure that the partners that they choose.
[00:35:35] Are the ones that are leveraging AI and are investing in ai, right? Because you don't wanna be with a partner that is not leveraging AI or investing in AI because that means that sooner or later they're gonna fall behind, right?
[00:35:48] Tom: Well, it's interesting 'cause I, you know, at the event at Future Built this week, I was, before the event started, I was going around and talking to not only the exhibitors, but also the attendees. And I said, you know, it'd be a very interesting conversation to go by every one of these exhibitors and simply ask the question, where does AI play in your platform?
[00:36:04] Or, where does AI play in your, your future? Or where, where is AI on your whiteboard? And just see what information they come back, because they're all gonna say it's, it's being driven through their business. Um, but some are probably gonna be a little bit more ahead of the game than others. Um, but it's still a very interesting conversation and, uh, I think one that, that, uh, will be, uh, it, it'll flush out as we see it moving forward.
[00:36:26] And I think at some point there'll be an inflection point there where they really see these, this technology take off. And it'll be a case by case basis.
[00:36:34] But, you know, one guy I call out and kind of follow, uh, religiously is, uh, Greg CH section. So section ai, uh, I would certainly encourage you to kind of run and track him because the way in which he looks at AI in the commercial or enterprise space, I think is very unique and he's very much, uh, telling the truth.
[00:36:50] Like, not everybody's gonna be able to get this. They just don't understand it. Uh, or they're fearful of it. But, uh, those who take the leap of faith and embrace themselves and align with a strategic partner that maybe does this full time, they'll be rewarded.
[00:37:05] Sid: Yeah, I agree. Yeah. I mean, most folks think of ai, they think of generated ai, but there's so much more. I mean, there's, you know, agentic ai there, there's computer vision. There's different tools that exist that, you know, all have AI in some way or form that is helping you achieve an outcome and not just, you know, give you a result back, but actually go and execute on what you're asking it to do.
[00:37:27] Right. Um, you think our industry is, is, is ready for this. Do you think our industry understands enough to, you know, not be intimidated by it, but actually feel like we have to now upskill ourselves to like, go and leverage AI in the best way? Because, you know, today, you know, in six months probably.
[00:37:46] Tom: Mm-hmm.
[00:37:47] Sid: You know, following up on work orders or picking up your phone and calling someone, like with voice ai, those things that might not necessarily be requiring a human anymore, right?
[00:37:58] There's, there's so many applications for AI to solve real problems. Do the people in our space understand just what this industry's gonna look like in a year or six months from now and are,
[00:38:10] Tom: know,
[00:38:11] Sid: embracing it?
[00:38:12] Tom: I think the, the leaders in the space, those that are forward thinking, that, that have, have, uh, been tracking this and who adopt it and who implement it will be rewarded and they will leave their competitors in the dust. I think there is gonna be an aversion to technology and, and AI certainly is the case.
[00:38:29] Where people just say, well, you know, I've always done it this way and therefore I'm gonna continue to do this way. But I think the industry will force, or the, the, the technology will force the industry to move. And you'll probably have some fallout for people that are unable to adopt it. But I think you'll see a huge hockey spike of growth in how people achieve, uh, the work that they do.
[00:38:52] And to your point, you know, if I've invested in a work order management system or EMS system and I'm able to now layer on top an AI tool that is able to work 24 7 to, to scrape and clean and aggregate and then produce an outcome or direct me to what that outcome is, uh, without bringing on additional headcount, I will have done so much, uh, for the business.
[00:39:13] I also can take that AI and let an employee utilize ai and now their skillset is gone from 10 to a hundred. And I think people that do that will be rewarded. But like I said, when I was in DC and I'm talking around talking to these people, some of 'em just look like there's deer in the headlights when they talk about a, oh, I don't wanna know.
[00:39:32] I don't even know what to talk about. Uh, I don't even, I don't even know how to address it. And I'm thinking to myself, shame on you. Um, but you really have to jump in with both feet and embrace it because it's, it's, it's going to change your life dramatically. And if, and if you don't embrace it, you will be penalized. And we left in the dust and it's just matter of fact.
[00:39:55] Sid: Yeah. And I, and I think that, you know, if you really embrace ai, you'll welcome it, right? Because it's not like in our industry, we have the optionality of not looking at our phones or picking up that call because it's the nature of our business. You so much of that can actually now be taken care of by AI and, and the potential to just give, another way to just have peace of mind, you know, is, is phenomenal
[00:40:21] Tom: Yeah, I was,
[00:40:22] Sid: That's the potential, right?
[00:40:23] Tom: I gave my predictions, and this was last year, and I said, you know, this will be the year of agents. And I think I and many other people saw that come to fruition. And I think, you know, we work with a handful of, uh, agentic AI companies and they're trying to scale, but I've introduced them to several, uh, IFM companies with the sole intent to say, Hey, let let this organization evaluate your workflows.
[00:40:44] Let's see the touch points between human and and manual entry, and let's just evaluate what is currently being done, uh, manually. And let's see if there's a way in which we can automate that through an agentic, um, AI tool or an agent. And, uh, doing that from a business development perspective, doing it from a customer, uh, service perspective.
[00:41:04] Doing it from an operations perspective. And it's really interesting how, uh, the light kind of goes off in their head when someone from outside their organization understands their business and says, this is what you could do if we applied AI on top of it. And I think people who make that investment to kind of see what's available out there, uh, it's gonna be a game changer and there's always gonna be those laggards and shame on them.
[00:41:29] In this particular case, the laggard probably loses and loses in a big way.
[00:41:34] Sid: yeah. Are there any companies that excite you today that are, that are doing something interesting in the space, either in growth stage or, uh, even, even early stage companies, startups that you're, that you are looking at and you're like, huh, there aren't to something that.
[00:41:51] Tom: I probably don't have enough time in the day to tell you of all the ones that kind of excite me. I mean, I've done this exercise, I think I had 96 companies deep of people that I thought, this is technology that I think makes a lot of sense, and they're looking at it through a different lens.
[00:42:03] But yeah, there's certainly a lot of startups. I mean, we were fortunate to have a handful of them in DC but you know, companies like Inspector, uh, or you have, uh, Mon Air, which I know you guys know them well. Companies like, uh, moi ai, which is another one, CCTV overlaid with, uh, with ai. Um, you know, there's just so much out there.
[00:42:26] When we were talking about the Future Belt, when we started thinking about this, we wanted to have an event that was agnostic to technology, so it'd just the built environment. And so we really saw a lot of things in the digital twin area, in the robotics area. Uh, in the ai, uh, enabled an an efficiency of HVC refrigeration.
[00:42:44] We were both, uh, fortunate to be on the panel at XOI down in Nashville, and I think XO i's just done a terrific job. You know, Aaron and his team have built what I would consider is the platform of, for field service. They've done just an amazing job in the fact that they're being rewarded by KKR coming in and say, here's a check for $220 million, let's scale this business.
[00:43:05] So they have created a foundation and I think where, and I told the XOI team when I was down there, is that they really have the opportunity to, to really build out that tech stack. And, uh, there's a lot of, of these ancillary. Solution providers out there that I think would be a huge compliment to them.
[00:43:22] So I would say watch XOI, I think they're one to watch for sure. And of course, they've made an investment in specifics, which again, I think is a great idea of taking, you know, aggregating historical HVAC data and soon to be refrigeration data, cleansing that data, uh, putting it back in a useful form, in an actionable form, in a predictive form to the client.
[00:43:44] That's just great. That's huge.
[00:43:47] Sid: Yeah, no, I agree. A lot of great, interesting companies that are coming into the space
[00:43:51] Tom: Mm-hmm.
[00:43:52] Sid: A lot of money being raised too at high valuations, which, you know, I'm sure is, is a, um, is a kind of, uh, thumbs up to the kind of potential that exists in our space, uh, to just transform the industry. And, and technology and AI will help elevate the, not only the conversation, but elevate the, the kind of service levels we got are able to offer, um, to our customers.
[00:44:16] All with one, one central idea in mind, which is, how do you make the brick and mortar space optimize with the best experience possible to kind of supercharge, uh, all the businesses, uh, and, and help them deliver on their brand promise and, and achieve ama amazing growth? Right.
[00:44:34] Tom: Yeah, I think from the investment perspective, and this is clearly my observation, but I've, I've talked to enough PE and VC firms of late, I, I really think the, the interest from the sidelines as it relates to investment is really focused on the asset itself. So, you know, you think about like, um, the ability to extend the value of an asset, reduce the maintenance cost, reduce the risk, and oh, by the outcome is reduced energy.
[00:45:03] Okay. They're not necessarily driving with the value of energy reduction. They're really driving the value of extending the asset life. And the byproduct is, one of those things is energy reduction. So I think from a investment perspective, I think more and more people are looking at it from the asset lens.
[00:45:18] And so when I talk or we talk to some of these startups who are, you know, CMS or EMS or IEQ, I really encourage them to look at their business of what they're doing for the asset. Um, and, and where do they stand in mitigating that risk around the asset or extending the asset life. And then if they're an EMS company or a BMS company or even a CMS company, maybe the byproduct of that is, is something different, but to get some awareness is around the asset.
[00:45:46] Sid: Yeah. Tom, as you look at the, the industry today and you look at the trends that are taking place and then you look at the future, are there any trends today that excite you, uh, and you're like, this is gonna be how it is in the future as well, and other things that are, you're like, nah, this seems like a fad that's not gonna stick.
[00:46:05] Tom: Mm-hmm. Mm-hmm. Well, that's a good question. I I, I do think this, like other industries, uh, and I think next year you'll see it even more at a rapid scale is this consolidation. Uh, so I think that from a technology perspective, you'll see a lot of these marriages being made. I mean, obviously you saw Eco Track and InTouch being married by that PE firm with the sole intent to bring those organizations together.
[00:46:28] You don't necessarily lead with one solution, right? So even in the case of Service Channel, you may have cut your teeth as a work order management or an asset management or a CMS platform, you know, 25 years ago.
[00:46:38] But now you're looking at ancillary solutions that you can bun a bundle in and bring in. Maybe it's an EMS, maybe it's BMS, maybe it's utility bill management. So you're, you're building a much more robust application for the end user. You're also creating a much stickier application for that end user. So I think the collaboration of what has historically been, uh, competitive is now being much more collaborative.
[00:47:01] Uh, I also see a rise of white labeling of that technology. So even in the case of some of these startups, when I talk to them, they're not necessarily averse to leading the charge with their own brand and logo pushing their particular solution. They're very much open to the idea of white labeling their solution, licensing out their solution to an organization to drive value.
[00:47:20] And I think that's gonna continue to trend up. I think there will be consolidation. I, I kind of look with my lens of the IFM community. So you think of integrated facilities management business, you know, in, in the past it could be a guy with a truck and a ladder, and he's now an IFM business. I think this year they're gonna, that's gonna get weeded out.
[00:47:38] I think especially when you start talking about the adoption and integration of AI into the space that I think that those, uh, are guys are gonna be kind of fall by the wayside. Uh, if you're an organization, a large brand, you're not gonna, uh, put, uh, your eggs in that basket at all. Uh, there may be an outlier like in, you know, Bismarck, North Dakota, where you need to have that one guy who turns the wrench.
[00:47:59] But for the most part, I see, uh, consolidation in the IFM space as well. You certainly see that from PE and V serve firms where they're looking like, Hey, listen, let's look at a large regional HVAC, let's look at a large plumber and let's try to consolidate that and build a larger entity. And I think you see that, uh, growing, uh, in 2026.
[00:48:21] Sid: I like that. Those are all very sound predictions. As you look at the future, what does the consumer of tomorrow look like? What are they gonna expect from the brands that, uh, they love?
[00:48:32] Tom: Well, they certainly expect immediacy. We've been conditioned to literally push a button, expect it by five, and I think that, you know, cuts both ways. It, it sets the expectation of the buyer at such a high level that in many cases it's hard to achieve. So you really have to do some of the ancillary things to maintain that.
[00:48:53] And, and is loyalty still alive? Right? I don't know if loyalty is necessarily alive. When you think about, uh, the IFM community, the integrated facilities management business, because I think you're only as good as your last work order. And if you have more and more decisions being made by procurement, uh, the loyalty kind of goes out the window.
[00:49:13] And that's a shame. That's unfortunate because you lose travel knowledge and you lose just a connection with that service provider. But from a consumer perspective, same thing is that, you know, if I have a poor experience online with let's say Walmart, uh, do I take the effort to go to Walmart or do I say I might, my, my opinion's now been tainted and I'll go somewhere else and shop.
[00:49:37] It's a calculated, uh, risk for those organizations to try to have this omnichannel approach. But they have to, they have to hit, they got about a thousand every single time, uh, to maintain that brand image. And if they fall down, there's gotta be something there.
[00:49:54] I think that's where I think you'll see a lot more expectations for the consumer is like, you want my business prove you want my business? Because I can go anywhere at any time and get anything I want. And unless you make that effort, uh, I'm gonna go to the lowest and least possible a hurdle to jump, to get it.
[00:50:11] Sid: No, I love it. That, that makes a lot of sense. I mean, consumer expectations have never been higher. And you know, brands have to have a amazing omnichannel experience to actually ensure that, um, they're delivering on the brand promise. You don't get to just say. I want a great e-commerce experience.
[00:50:28] Tom: Yeah, exactly.
[00:50:29] Sid: and if you don't have that, like, you know, cus loyalty can be, can be a challenge. What advice would you give to the audience in, in, you know, who might be either in a tech company that's, uh, looking to, you know, get noticed or a leader in facilities that is on the, the start of their journey and is looking to kind of build a narrative internally to get more funding and investments to really build a program that, you know, uh, they can be proud of.
[00:50:57] Tom: I think on the tech side, the, the organizations that we work, I think the, the main thing that I kind of, uh, drive home is that. There's so much noise out there, and you have to cut through the noise and really craft a narrative that's thought leadership above and beyond where you are today because there's just so much noise you have to cut through it.
[00:51:16] Um, so I would say to that individual is like, listen, uh, own the narrative, evangelize the, the, the value above and beyond craft the narrative, why you do what you do and, and those kinds of things. And I think, and you have to continually beat that drum. It's not a one and done kind of thing. I think also, uh, people, a lot of, a lot of people fall down on the, on the vehicle in which they use to message that.
[00:51:37] I mean, uh, you can't simply just email out and expect somebody to pick it up and know they're, they're in your pocket. That doesn't work that way. Um, so the social aspect of a marketing that thought leadership is critical. Those individuals still need to be engaged in the associations and, and create some level of thought leadership on the FM side, like I said earlier, it's like get aligned with an association. Get in a mentor program, uh, expand your network, challenge yourself to meet 10, 15 people at a conference and really invest in them. So it's not necessarily getting something in return. It's actually trying to find this mutual benefit of what I can share with you that creates value and what you share with me creates value.
[00:52:18] If you think of all these fms who are successful, they have a pretty large Rolodex deep, uh, not only of the industry, their, their peers in the industry, but those who also have a strong relationship with the service providers. Because in the FM world, the service provider really drives so much for the fm, um, that the, that relationship is critical. So those are a couple ideas.
[00:52:41] Sid: Awesome. Well, Tom, for those in our audience who wanna reach out to you or find you, where can they find you?
[00:52:46] Tom: Find me on LinkedIn. I live there and, uh, I, I'd love to hear from him. And so thank you Sid and my fellow techs, and I wish you well.
[00:52:54] Sid: Thank you so much. Well, with that, Tom, I just wanna say a huge thank you. Really enjoyed our conversation. I appreciate you being here. And for all those in our audience, thank you so much for joining us, and I'll see you on the next episode of Elevating Brick and Mortar.
[00:53:09] Well, that was Tom Kay, Managing partner at Efficio Advisors. What stood out today is how clearly the industry is at an inflection point where technology, talent, and consumer expectations all shifting at once. Tom reminded us that facility shapes the customer experience every single day and has never been more essential.
[00:53:33] The teams we embrace data, modern tools, and continuous upskilling will lead the next chapter of the built environment. With the rise of AI and Smarter Asset Management, we have a real chance to change the perception of facilities being just a cost center. Instead, it's a strategic driver of brand outcomes.
[00:53:54] With that, I'm your host Sid Shetty, and I'll see you on the next episode of Elevating Brick and Mortar.