7 Energy Management Strategies That Are Saving Manufacturers Thousands
Energy costs are silently eroding manufacturing profits.
Most manufacturers focus on labor and materials when looking to cut costs. But energy often represents 10-20% of total operating expenses.
And it’s getting worse.
Recent data shows that UK manufacturers have seen energy costs increase by up to 150% since 2021. This dramatic rise is putting immense pressure on already tight margins.
But here’s the good news: manufacturers who implement strategic energy management can reduce energy costs by 15-30% without compromising production.
Let’s explore seven proven strategies that are helping manufacturers across the UK take control of their energy expenses.
1. Energy Monitoring and Targeting
You can’t manage what you don’t measure.
Most manufacturers have only a vague idea of where their energy is being used. A single monthly bill doesn’t tell you which processes, equipment, or departments are the biggest energy consumers.
Implementing sub-metering and energy monitoring systems allows you to:
- Identify energy-intensive processes
- Spot inefficient equipment
- Detect unusual consumption patterns
- Measure the impact of efficiency improvements
One manufacturing firm discovered that a single piece of equipment was responsible for 22% of their total electricity consumption. After upgrading just that machine, they reduced their overall energy bill by 17%.
2. Production Schedule Optimization
The timing of your energy use matters almost as much as the amount.
Energy costs vary significantly throughout the day, with peak-time rates often 20-30% higher than off-peak rates. By shifting energy-intensive processes to off-peak hours, manufacturers can achieve substantial savings without reducing output.
Consider these approaches:
- Schedule energy-intensive processes during nights and weekends
- Stagger equipment startups to avoid demand spikes
- Batch similar processes to minimize equipment cycling
A food processing plant saved £34,000 annually by shifting their most energy-intensive operations to off-peak hours.
3. Compressed Air System Optimization
Compressed air is often called the “fourth utility” in manufacturing—and it’s typically the most expensive.
Generating compressed air is incredibly inefficient, with only about 10-15% of input energy converted to useful compressed air energy. The rest is lost as heat.
Yet most compressed air systems waste 20-30% of their output through leaks, inappropriate use, and poor maintenance.
Simple improvements include:
- Regular leak detection and repair
- Lowering system pressure to minimum required levels
- Installing proper controls and storage
- Recovering waste heat for space or water heating
These measures typically pay for themselves within 3-6 months.
4. Strategic Equipment Maintenance and Upgrades
Poorly maintained equipment doesn’t just break down more often—it consumes more energy.
Implementing a preventive maintenance program focused on energy efficiency can reduce energy consumption by 5-15%. Key areas to address include:
- Motor maintenance and replacement
- Bearing lubrication
- Belt tension adjustment
- Filter cleaning and replacement
When it’s time to replace equipment, consider the lifetime energy costs, not just the purchase price. Energy-efficient models may cost more upfront but often pay for themselves many times over during their operational life.
5. Heat Recovery Systems
Most manufacturing processes generate significant waste heat that typically goes unused.
Implementing heat recovery systems allows you to capture this waste heat and use it for:
- Space heating
- Water heating
- Preheating process inputs
- Generating electricity (in some cases)
A metal fabrication plant installed a heat recovery system that reduced their gas consumption by 28%, with a payback period of just 14 months.
6. Strategic Energy Procurement
Even the most energy-efficient operation can overpay if their energy procurement strategy is flawed.
Many manufacturers simply renew with their current supplier without exploring alternatives or negotiating better terms. Others work with brokers who hide their commissions in inflated unit rates.
A strategic approach to energy procurement includes:
- Timing contracts to take advantage of market conditions
- Consolidating multiple sites for better leverage
- Ensuring complete transparency in broker fees
- Negotiating contract terms that align with your usage patterns
At Link Utility Consultants, we guarantee to beat any direct supplier renewal quote, with complete transparency on our capped commission structure.
7. Employee Engagement Programs
Your employees can be your greatest allies in reducing energy consumption.
Creating an energy awareness program that educates and incentivizes staff can lead to significant savings with minimal investment. Effective approaches include:
- Energy-saving suggestion programs with rewards
- Regular training on energy-efficient practices
- Visual feedback on energy consumption
- Friendly competition between departments or shifts
One manufacturer reduced their energy consumption by 8% simply by implementing an employee engagement program that cost less than £2,000 to establish.
Taking the Next Step
Energy management isn’t a one-time project—it’s an ongoing process of measurement, improvement, and verification.
The most successful manufacturers integrate energy management into their overall operational strategy, treating energy as a controllable expense rather than a fixed cost.
At Link Utility Consultants, we specialize in helping high-energy users like manufacturers reduce their energy costs through strategic procurement and efficiency improvements.
Our transparent approach, capped commissions, and guarantee to beat any direct supplier renewal quote ensure you’ll always get the best possible rates without sacrificing control.
Ready to discuss how we can help your manufacturing business reduce energy costs? Contact us today for a no-obligation consultation.
