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Case Study

Electronics manufacturer switches on global savings

When a global electronics manufacturer decided to outsource its facility management, Jones Lang LaSalle predicted opportunities to save 10 percent annually across 11.5 million square feet of the company’s Chicago-area facilities. The company’s senior leadership challenged us, as long as Jones Lang LaSalle could deliver initial savings within 90 days.  Our team dove into the task and captured $9 million during the first three months.  We were retained for the year, but were wrong about our 10-percent annual savings forecast.  We actually slashed costs the first year by more than 12 percent.

The following year, the innovative electronics manufacturer raised the bar to an 11 percent savings target, which we answered with a 13.4-percent reduction.  A big contributor to this savings was our ability to consolidate building services contracts and to negotiate high-volume discounts with national vendors.  Since 2002, we have consistently driven costs down between 5 percent and 10 percent annually while meeting the company’s diversity spending target of 12 percent.

The early years proved to be only the beginning of a relationship that has spread in both services and geographic scope.  The initial facility management assignments have expanded to include energy and sustainability, consulting, and transactions assignments. The scope of Jones Lang LaSalle’s work for this company currently covers 23 million square feet in 42 countries.

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