Manufacturers are grappling with the repercussions of soaring gas and electricity prices, reaching unprecedented highs, according to the latest report, “Driving Industrial Energy Efficiencies,” published today by Make UK and Inspired PLC. The research explores how energy-efficient practices and technologies can offer relief to businesses facing financial strain while concurrently aligning with their Net Zero targets.
The report underscores the urgency for companies to address escalating energy costs, which have experienced significant volatility over the past two years, coupled with a surge in operational expenses. Manufacturers are now compelled to navigate a challenging landscape with considerably diminished profit margins, prompting a growing interest in energy efficiency initiatives.
Net Zero has become a top priority for 92% of businesses, with 68% having already made investments to initiate their journey towards sustainability. Additionally, two-fifths (22%) plan to make further investments within the next 12 months.
The report highlights a dual-pronged strategy adopted by businesses to curb energy consumption, ranging from low-cost, low-effort measures to more substantial investments in equipment and process upgrades. Recommendations include securing advantageous energy contracts, utilizing smart meters and sub-metering for granular consumption insights, and employing Internet of Things (IoT) technologies for real-time data access.
Case studies within the report showcase the tangible benefits of these measures. For instance, a rubber compound manufacturer saved £62,734 through a more favorable energy contract and over £48,000 by reducing waste through circuit-level monitoring.
Moreover, implementing Voltage Optimisation, limiting energy intake from the National Grid to the exact amount needed, and overhauling compressors—responsible for 10% of industrial energy consumption—can yield significant energy savings.
The report emphasizes the need for governmental support in propelling these energy efficiency measures. Faye Skelton, Head of Policy at Make UK, advocates for the establishment of a National Advisory Energy Service, akin to the Made Smarter model, offering smaller funding packages of up to £20,000, including an energy audit, sub-metering, and an implementation plan.
Andrew Stubbs, Director for Optimisation Performance at Inspired PLC, supports the report’s findings, highlighting that sustainability aligns with good business sense. He emphasizes the importance of continuous improvement processes around energy efficiency for a prosperous and environmentally responsible future.
Make UK calls on the government to utilize the upcoming Autumn Statement to facilitate the transition to net zero through energy efficiency measures. Among their recommendations is a gap analysis of tax incentives to ensure that no business type falls through the cracks.
The report draws attention to the untapped potential of heat recovery, identifying it as a crucial element to enhance energy efficiency. Utilizing steam or waste heat from machinery and high-temperature processes can heat other parts of the process, generate hot water, or contribute to space heating. Make UK’s report positions energy efficiency as a critical pathway for manufacturers to navigate the challenges posed by escalating energy costs while advancing towards a sustainable and economically viable future.