Power Up Savings: How UK Manufacturers Can Combat Energy Prices

Running a manufacturing business in the UK? You’re likely feeling the strain of rising energy prices. Since 2022, energy costs have surged, with gas prices up 50% and electricity prices continuing to climb.

As of 2024, the market remains unpredictable, and passing these costs onto customers isn’t always an option.

But, there are ways to tackle this head-on by improving energy efficiency and keeping your profit margins intact. Let’s dive into practical, easy-to-implement strategies to help lower your energy bills.

1. Start with an Energy Audit

An energy audit is the best way to figure out where you're losing energy—and money. It’s like a check-up for your factory. One UK food manufacturer found that old refrigeration units were wasting loads of energy. After upgrading, they slashed their energy costs by 15%. The audit helps identify quick wins, so you can make small changes with big savings.

Takeaway: Get an energy audit done. You might be surprised how much you can save just by updating or tweaking a few processes.

2. Upgrade to Energy-Efficient Equipment

Outdated machinery could be costing you a fortune. By upgrading to energy-efficient technology, like variable-speed drives (VSDs), you can cut energy use significantly. A UK automotive parts manufacturer installed VSDs and reduced energy consumption by 25%. Plus, the government’s Industrial Energy Transformation Fund offers support to businesses making these upgrades.

Takeaway: Upgrade old equipment and take advantage of government incentives to help reduce upfront costs.

3. Optimise Your Production Schedules

Did you know that shifting energy-heavy processes to off-peak times can save money? A UK textiles manufacturer cut their energy bills by 12% by using AI-driven scheduling to run energy-intensive tasks during cheaper, off-peak hours.

Takeaway: Review your production schedules and see if moving certain tasks to off-peak times could help lower your energy costs.

4. Embrace Renewable Energy

With the UK pushing for net-zero emissions by 2050, renewable energy is more accessible than ever. A UK packaging company installed solar panels and now generates 20% of its own energy, reducing their reliance on the grid. The government also provides grants for businesses looking to make the switch to renewable energy.

Takeaway: Explore renewable energy options like solar or wind. With government support, it could be more affordable than you think.

5. Get Everyone Involved

Sometimes, small changes from your team can lead to big savings. A UK electronics manufacturer saved 10% on their energy bills simply by getting employees to turn off equipment when it wasn’t being used and making adjustments to heating and cooling.

Takeaway: Foster a culture of energy awareness across your team. Even small actions can lead to significant savings over time.

The Bottom Line

Rising energy costs don’t have to drain your profits. By making a few smart adjustments—whether it’s upgrading equipment, tweaking production schedules, or going green—you can keep energy costs in check. The key is to start small, track the results, and build from there.

Operational efficiency is not just about cutting costs; it’s about staying competitive and resilient. Start today, and you’ll see the difference in both your energy bills and your business's sustainability credentials.