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A&M and Artis Energy Intelligence’s New JV Adds To The Competitive Intensity in the Energy Services Market

On May 4, 2018, global consulting firm Alvarez & Marsal (A&M) announced the launch of a new energy management consulting division, formed through a JV with energy management software vendor Artis Energy Intelligence. A&M also made an equity investment in Artis Energy Intelligence as part of the partnership. The division will target opportunities to design and deliver energy management programmes across A&M’s client base in sectors such as manufacturing, commercial real estate, government, retail and education. A&M believes there is significant opportunity across existing clients because energy costs are often a top-five operating expense.

A&M will make Artis Energy Intelligence’s software central to its new offering. The benefits of integrating energy consulting and software are now well proven. Software enables energy services firms to calculate energy usage baselines, support a better procurement process, identify inefficiencies, model efficiency projects and build the business case for future investments to help customers secure budget. It also enables suppliers to monitor and verify the performance of efficiency projects to demonstrate the value of the service they provide to customers. While the services element fulfils two key roles: driving actions on the back of the insights, and allowing busy clients to focus on their core role while the energy consultants work on their core too.

What are the implications for market participants? The new JV confirms that the competitive landscape for energy services continues to get more complicated and more competitive. Over the past eight years the volume of firms providing energy services has increased dramatically, with firms entering from backgrounds such as consulting, energy supply, equipment manufacturing and facilities management. One area of advantage for A&M is that it already holds relationships with CEOs and Board members through its wider consulting engagements on themes such as corporate performance improvement. This could open up the opportunity for it to pitch the benefits of firm-wide energy management strategies to the C-suite. This is notable because other energy services provider struggle to form relationships at the executive level.

To learn more about the energy management solutions being prioritized by property investors tune into our free webinar this week: Real Estate Investors’ Preferences, Priorities And Budgets For Technology In 2018.