Energy is one of the biggest overheads for manufacturers, yet many still treat it as a fixed cost, not a performance issue. In today’s climate, that could be a very costly mistake.
Manufacturing Matters Magazine spoke with Anthony Murphy from Veritas FM about this issue. Anthony warns that failing to manage energy efficiently doesn’t just affect your bottom line. “If you’re wasting energy, you’re also eroding profitability, shortening the lifespan of your assets, and in turn, you could also be putting your reputation with customers and stakeholders at risk. Setting aside cost implications we must also consider the increasing importance of ESG”
Anthony‘s experience lies in FMCG and industrial production sectors. He comments: “Poor energy performance often stems from ageing equipment, inefficient or ineffective systems. But can simply be down to bad habits – like leaving lighting on or worse HVAC running 24/7”.
“It’s not uncommon for me to find equipment running unnecessarily or for systems to be out of sync with actual production needs,” Anthony notes.
A recent example of this was a company in the Midlands that were simply paying an ever-increasing energy bill with no formal approach to reducing energy usage or waste. The introduction of some quick and immediate energy reduction initiatives saw immediate tangible benefits. Find out more by reading Case Study 6.
Premature Asset Failure
Murphy also highlights how this can impact ESG performance: “Buyers nowadays, are more conscious of carbon and social value than ever. If your Energy Performance Certificate (EPC) rating is low or your ESG data is weak, that could be the difference between you winning or losing a contract. Almost all modern RFP’s & tenders require tangible ESG evidence to support their wider claims ”
We asked Anthony: “Could this be another overlooked consequence?”
Anthony stressed: “When equipment is overworked or poorly maintained, it degrades faster, meaning you could face higher replacement costs, business disruption and unplanned capital expenditure.”
“Manufacturers need to be aware of what their poor energy discipline is costing them in missed growth opportunities”
Anthony Murphy, Veritas FM
The solution, says Anthony, is data-driven visibility and a culture change. “With the right monitoring tools and some simple behavioural adjustments, most firms can reduce waste significantly and improve their bottom line without major capital investment.”
Find out why you’re paying out more than you should for Energy. Click here to find Anthony Murphy on LinkedIn, or email: anthony.murphy@veritas-fm.co.uk
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