Everyone is feeling the effect of steeply rising energy prices at home, and in our businesses, with further increases expected. With energy costs hitting a record high, the impact on the manufacturing industry has become severe, so how do we get a hand on energy management?
This blog will discuss the reasons for the energy crisis, what can be expected going forward, and we’ll cover how our energy management operations can help you tackle the spiralling energy costs.
Why are energy prices on the rise?
Due to supply and demand in the global wholesale market, energy costs are rising at their quickest rate in 30 years, putting pressure on households and businesses.
As a result, these additional costs are being forced upon manufacturers of goods who in turn, are making difficult decisions to pass these increases onto consumers or incur a hit on margins.
These are not palatable choices for most competitive businesses who are unable to influence the various global factors contributing to this energy crisis.
Reducing energy consumption
Hoping for mild winters and long summers to reduce energy consumption levels is not a reliable long-term strategy. Most manufacturing organisations will consume a large percentage of their energy as part of their process, being proportionate to their activity levels.
The obvious reaction to rising costs is to ensure we are not wasting this precious commodity by inefficient practices such as leaving lights on in unoccupied rooms and switching appliances off when they’re not in use. These practices are not new in the industry. Thousands of organisations are already following international standards for energy monitoring (ISO50001) with established energy policies, looking inside their business and focusing on continuously reducing consumption.
This is rightly focused on reducing their impact on the environment and improving their energy performance.
It’s not always easy to identify where energy efficiency can be improved. Measuring a site’s consumption is a good start but it doesn’t provide you with an insight into unexploited energy potential or reducing energy use.
The power of manufacturing efficiency and cost savings
For many years, manufacturing efficiency and cost savings have been at the heart of manufacturers’ continuous improvement and lean manufacturing programmes.
Gemba Solutions’ monitoring systems provide a thorough insight into operational activities, monitoring production equipment, releasing capacity, and reducing waste across various industries including food, engineering, chemicals, OEM and many others. Having these key efficiency factors identified in real-time has positively influenced the optimisation of energy management.
Combining cost and efficiency information into a visual system is providing both relatable and influential indicators to operators and management, generating real-time energy insight. In turn, this helps them focus on where energy efficiencies or inefficiencies are impacting their environmental initiatives, equipping them with the information to implement changes.
If you need to tackle spiralling energy costs through efficient manufacturing processes, or you need help with your energy management systems, get in touch.