7 Ways You Can Reduce Energy Costs in Manufacturing

A big expense for many businesses, especially a manufacturing one, is the energy costs. As the Managing Director at Dean Group, I am well aware of how essential reducing energy consumption is for my company and how it helps us to scale back on expenses and increase profitability.

Reducing energy costs can be challenging, however, as production can’t stop in order to save energy. So, how exactly can you go about reducing energy costs on your factory floor?

1.     Upgrade and Maintain Your Equipment and Tools

Investing in green technologies and equipment will significantly reduce your energy consumption. This means that using older equipment might save you money in the short term because you’re not purchasing new tools and machinery, but can actually be less cost-effective in the long term.

Also, when your technology, your equipment and your machinery are regularly maintained, you are more likely to remain productive and energy-efficient, since they are in good working condition and are not straining themselves to function properly. When a piece of equipment is operating below optimal standards, it is not energy-efficient and is likely consuming more than it should.

Having the most energy-efficient equipment and ensuring its maintenance over time are both essential for a more environmentally-friendly factory floor.

2.     Analyse Your Current Energy Consumption

Here, you want to identify potential issues in your energy consumption levels. It is crucial that you scrutinise the processes and technology you have in place so that you can improve the overall procedures. Only then you can begin to pinpoint problems, identify solutions, and prioritise and implement a plan to reduce consumption.

An energy audit, then, can help you to identify opportunities to improve, so make sure to have your existing system inspected.

3.     Power Down Your Equipment When You’re Done

Because nearly every machine and piece of equipment runs on electricity, it is important that everything that can be turned off overnight, or when your employees are not at the office or on the factory floor, is. Make sure that computers are shut down or put in sleep mode, for instance; if they can’t be shut down, adjust power settings to a more efficient usage.

Over time, every little change will add up. If you’re paying ￡0.10 per kWh, by reducing 2,500 kWh a month you can save ￡3000 a year – these savings can then be put back into the business.

4.     Have Energy-Efficient Lighting in Place

The lighting is just as important as the machines you’re using, so they also need to be energy-efficient. Manufacturing facilities need to have excellent lighting, meaning they can be a big part of your monthly energy expenses. Try investing in CFLs (compact fluorescent lights) or LEDs (light-emitting diodes); they will ensure your facility is well-lit and that you’re not spending more than you should on bills at the end of the month.

5.     Take Advantage of Off-Peak Hours

What time of the day do you use more electricity? Which machines or processes consume more energy? Can you be flexible and make changes to your current schedule? The answers to all these questions are important if you want to take advantage of variable electricity rates. If you know when you’re spending the most energy, you can adjust your operations strategically and avoid ‘peak consumption hours’.

6.     Opt for Motion Sensors in Your Business

Sensors that turn the lights off when there’s no movement can help you to conserve energy at the end of the month. They are most efficient in areas that do not receive as much traffic, such as storage areas and bathrooms. Motion sensors are fairly inexpensive in the first place and can be installed quickly, without the need for downtime.

7.     Make Use of Government Grants Available

Government grants, like the Green Business Fund from Carbon Trust, can help to change workplace behaviours and reduce energy consumption, as well as to reduce carbon emissions. This is done by raising employee awareness and engagement, and by encouraging the use of more energy-efficient technology through funding.

The Green Business Fund is a programme aimed at SMEs in England, Wales and Scotland and offers direct funded support in the form of workshops and assessments, for instance. The organisation also provides up to ￡10,000 of capital contribution towards energy-efficient technology.

These and more measures can help your business to become even more efficient, so make sure that your manufacturing facility is optimised with energy-efficient machinery and equipment – you’ll see the results when you receive the bill!

I am the managing director at Dean Group, a company that specialises in high-quality investment casting.