SUSTAINABILITY - 25.06.2020

Opportunity for manufacturers

Temperature check

A new study by the energy company E.ON has found that manufacturing companies said to be “putting sustainability at the heart of their businesses” have increased profit margins by 40%. The research, to assess the progress being made on sustainability and energy efficiency across the sector, also found that 30% of manufacturers said their competitiveness had increased as a direct result of making energy efficiencies. In a report, Towards a Net-Zero Carbon, UK Manufacturing Sector (see The next step ), it was found that 90% of the companies that were asked are aware of the UK’s target to be net-zero by 2050. And almost half of them see this as a business opportunity which they plan to take advantage of as the world opens up again. 20% of firms claim to have already taken action to meet the target and a further 20% are considering what action to take.

What have they been doing?

The single biggest thing manufacturers have been doing is signing better energy contracts. The survey shows that 40% of manufacturers have been able to renegotiate their energy contracts in the last twelve months, 65% of which were able to strike a better deal. Many of the big utility players now have solutions for their business customers, including energy audits and specific plans to help you reduce your energy consumption and bills.

Tip. If you haven’t done so already, it’s certainly worth speaking to your provider to see what tariffs/support they can offer.

Spend to save

It’s clear that manufacturers are actively investing in measures to improve their energy efficiency. In fact, 30% of companies have made investments in the last twelve months to improve their buildings, equipment or processes. This is how so many have been able to boost their profit margins and increase competitiveness. The advice given by E.ON is for companies to include spend to save investments in their post-coronavirus strategies as an “opportunity to ensure improved sustainability is factored into future resilience plans” .

Note. It will be easier for manufacturers that have higher energy bills to make big investments, given the return on investment calculations involved.

Quick wins

But that’s not to say that quick-win savings cannot be made by companies of all shapes and sizes. Lower-cost measures that are proving popular include switching to LED lighting with control systems, replacing outdated pumps and fan systems, installing sensors on production lines to make sure conveyors are only running when they need to, and installing energy recovery technology to make use of any heat being generated in production processes.

Note. According to the study, almost a third (27%) of companies said installing energy-saving technology had boosted their business.

Tip. You can also try making simple changes to the way your staff use offices. Encouraging people to switch off lights and power down machines that aren’t being used, for example, can typically save 26% in energy consumption.

For a link to the E.ON study, visit http://tipsandadvice-environment.co.uk/download (EN 15.02.07).