For a while now, retail facilities owners have embraced a mixed-use approach, creating spaces that blend not only commercial and residential uses, but cultural, entertainment and institutional activities and services as well.
We all know the last 15 months has seen fundamental behaviour change to embracing digital solutions, especially in consumer online shopping. Strategic review and refinement of the mix of shopping with entertainment is now critical for optimal return.
For local infrastructure, the ability to re-purpose facilities based on consumer trends has not yet been shown. Local governments have the opportunity to adapt to an evolving landscape and utilise data to make strategic decisions for the future of their facilities.
One of the biggest changes during the COVID-19 pandemic has been a shift to "local" as people work from home, often unable or unwilling to travel outside their local areas to traditional shopping and business centres.
This trend hasn’t gone away yet, and it’s unlikely it will with predictions of remote working or hybrid arrangements being here to stay. Communities and the way people use local infrastructure has changed permanently. This has significant implications and opportunities for local councils when it comes to infrastructure management and planning. A re-evaluation of existing projects may be required, as well as new projects to facilitate the changing nature of work.
As KPMG has observed, local communities are now more reliant than ever on local government. It recommends that local governments start by "conducting a whole of organisation risk assessment to get a clear view of the key priority areas. Ensure this is all managed from a central point by putting in place a centralised risk management platform."
The need for better data
In the event of emergency situations such as lockdowns, local governments must identify and ensure continuity of the services most critical to the community. At the same time, they will need to be able to rapidly redirect resources for any short-term capacity requirements, from other services facing lower demand. This will mean understanding exactly where demand levels are at any time, by measuring usage and getting accurate, up-to-date data.
Getting current data on asset usage is particularly critical since traditional usage patterns have changed. Historical data is now far less relevant when it comes to forecasting and planning. Even before COVID-19, Infrastructure Australia was calling for infrastructure operators to provide more user-focused data, as it was struggling to assess the performance of assets without it.
Data is one of the biggest challenges for local government, struggling to source the required technical capabilities. In a recent KPMG survey, 60% of respondents reported “addressing disparate data sources and data quality issues to enable efficient customer engagement and digital service delivery, including establishing a single source of truth” as the hardest element to achieve. Providing field services staff with better apps is one way to improve data collection and service efficiency.
Many customers in local government use AssetFuture’s Asset Intelligence platform to get vital insights into the current state of their infrastructure and assets. During the height of COVID in Australia, many had experienced a significant reduction in utilisation, but as restrictions changed, so did the utilisation in their facilities. Some are now experiencing much higher utilisation of certain facilities compared to pre-COVID. There is still recurring maintenance and capital cost regardless of utilisation, but being able to understand these shifts and being prepared for them is essential to servicing communities with fit-for-purpose facilities.
““Having a robust and functional Asset Lifecycle forecasting platform has provided a five-year visibility of cashflow, capital works requirements and forecast asset condition, including “what if” cost, risk and performance strategies and scenarios. This visibility reduces risk to an acceptable level, generates optimal value from existing assets and enables capital planning for current and new assets.””
To meet the changing demands of communities, local governments need to enhance capabilities in data systems and processes, as well as adopting a forward-thinking approach. Accurate and up to date information will guide the allocation of appropriate resources and better manage rate payer expectations.