Chances are, energy is a significant component of your firm’s operations cost — often on par with materials or labor costs to run your plants. Despite this, manufacturing executives don’t always consider the potential of
energy management in gaining a competitive advantage.
Executives at leading companies proactively make
energy a strategic priority, and incorporate energy management into their daily operating decisions at all levels. But
lagging companies don’t manage energy at all, and often
cite the same challenges preventing them from tackling
energy costs. This post, inspired by our many conversations with VPs and other key energy decision-makers,
helps debunk some of the commonly held assumptions
about energy costs that prevent many executives from
realizing the full benefits of energy management.
Myth 1 — Energy costs are a fixed cost of doing business. There’s no escaping it — energy is a critical input to
your business, whether it’s used to keep your staff comfortable, convert iron into steel or mold plastic products.
In general, increasing your business outputs increases your
energy bills, and some operations managers even track their
output based on energy costs. But very few firms scrutinize their energy bills to understand whether these costs
are controllable, as most assume that energy is a fixed cost
of doing business. It’s not. In reality, tracking and investigating the various line items of your energy bills is a key
first step toward controlling energy costs. Some aspects are
fixed, but the vast majority of charges can be addressed.
Demand charges are a great example of controllable
energy costs — you’re paying a premium for the ability
The Top Three Myths In Industrial
Energy Management Debunked
By John DuPont
Efficient, Pt. 2
Part two of IMPO’s seventh annual
Energy Intelligence Report brings our
readers a look at the role of energy within
manufacturing facilities and how companies
can decrease their energy use and its costs. This
report aims to provide best practices and examples of
efforts being made in manufacturing energy conservation that
businesses can use as they face tightening budgets.
Here, we provide a look at facility energy myths vs. facts, how to
maximize the savings from LED lighting upgrades, the financial benefits of
conserving water and the importance of power quality within your plant.