Manufacturers are increasing their investment in strategic energy management and efficiency in order to improve their competitive position against a backdrop of rising energy costs, according to a joint survey from npower and EEF, the manufacturers' organisation.
Wayne Mitchell, director of industrial and commercial sales and marketing at npower (pictured), commented: "Good energy management happens in the boardroom and, with the cost of energy continuing to rise, making strategic decisions with a trusted energy expert can help a business stay competitive. At npower, we're committed to developing that kind of relationship with our manufacturing customers."
The rise of energy on the boardroom agenda is emphasised by the fact that over a third of CEOs and managing directors retain control over energy efficiency decisions, with a similar number taking the lead on procurement. While the survey shows that specialists tend to be introduced in companies once turnover exceeds £20 million, of all manufacturers surveyed, decisions were still taken at board level by half of companies.
The survey also shows that, since 2002, the industrial price of gas has increased by 122%, while industrial electricity prices have increased by 94%, according to DECC's UK Energy in Brief 2013. As such, 96% of businesses cited reducing energy use and addressing cost as the main reason for investing in energy efficiency.
The survey also highlights that manufacturers are taking their responsibility to reduce their carbon footprint seriously. Reducing electricity bills is cited by over two thirds of manufacturers as the main benefit of investing in energy efficiency, while a similar number see a reduced footprint as the main benefit arising from their energy efficiency investments.
The positive approach manufacturers are taking to managing their energy use is highlighted by the fact that almost two thirds have already undertaken energy audits and over half have adopted lighting efficiency strategies. In addition, companies are making full use of the suite of advisory services available to them by using energy specialists and contacting organisations such as the Carbon Trust. Additionally, 20% of companies turn to their energy supplier for energy management advice.
Two thirds of manufacturers cite that payback periods are a key barrier to engaging in energy efficiency.