Plant Engineering Energy Study: Less than half of manufacturers conduct energy audits

According to a energy survey by Plant Engineering, only 47% of facilities conduct an annual energy audit

07/26/2013


Plant Engineering 2013 Energy Management ReportEnergy is the largest cost area for many manufacturers, yet fewer than half of manufacturing facilities conduct even an annual energy audit. That is the key finding from Plant Engineering’s recent research study of U.S. manufacturers. The full report is now available here.

The survey found that just 47% of facilities conduct even an annual energy audit of their plants. While just over a quarter of those respondents perform an energy audit annually, only 5% conduct an audit twice a year, and 9% conduct an audit quarterly.

"Energy is a raw material, like steel, plastic, and other materials that go into making a finished manufacturing product. We think it is unlikely manufacturers would not audit the materials that come into their facility. Yet that appears to be happening with energy in many plants in America today," said Plant Engineering content manager Bob Vavra. "Manufacturers who do not understand their energy usage in all areas are missing a huge opportunity to better manage their overall costs and deliver greater savings and profits."

Plant managers cite a lack of management support—including financial support—as the primary challenge in building an energy management program. The survey found 33% of plant managers said a lack of resources was the primary barrier to a program, while 19% cited a lack of buy-in from management and 13% said there was a problem with calculating the ROI of such a project. Just 15% said the biggest problem was a lack of buy-in from line workers.

Despite this, most plants have an aggressive energy reduction goal, and most expect to meet those goals. More than 70% of plants have an energy reduction goal of at least 10%, and 5% have a goal of more than 20%. More important, 89% of plant managers said they believed their energy management goals were achievable. Those cost savings do not translate into greater compensation for the plant manager, but just 22% of plant managers are compensated for achieving energy management goals.

Utilities have emerged as a key partner in energy management programs, and most plants understand the value of that relationship. Two-thirds of plant managers said they work with local utilities on energy management, and 78% cite the utilities as a valued partner. Of those plants which don’t work with a utility, 46% said they were unaware their provider had a program and 33% said they didn’t consider themselves a large enough customer to be in the program.

"It’s clear that all parties involved in industrial energy management need to do a better job educating the end users on the value of a sound energy management program," Vavra said. "Utilities need to continue their outreach to industrial users of all sizes. Manufacturing suppliers must continue to explain how the combination of energy audits and energy management systems can help plants get a true understanding of their energy use. Plant managers must have a better understanding of the ROI of energy management and be able to effectively carry that message throughout their organization."

Alternative energy sources have gained some attention, but most are still not in widespread use. Co-generation is used by 21% of plants, with solar (13%) and wind power (9%) each having some use. Still, 49% of plant managers said they do not use any alternative fuel sources.

The survey was conducted by Plant Engineering June 14-23, 2013, to better understand the areas of responsibility and challenges plant managers face when it comes to measuring and monitoring energy consumption. The survey looked at the various kinds of energy sources, including electrical, compressed air, and natural gas, and the energy management programs for each source. It also looked at how manufacturers are working with local utilities on energy conservation programs, as well as manufacturers’ use of alternative fuel sources.

To download the full report, click here



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
The true cost of lubrication: Three keys to consider when evaluating oils; Plant Engineering Lubrication Guide; 11 ways to protect bearing assets; Is lubrication part of your KPIs?
Contract maintenance: 5 ways to keep things humming while keeping an eye on costs; Pneumatic systems; Energy monitoring; The sixth 'S' is safety
Transport your data: Supply chain information critical to operational excellence; High-voltage faults; Portable cooling; Safety automation isn't automatic
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Synchronizing industrial Ethernet networks; Selecting protocol conversion gateways; Integrating HMIs with PLCs and PACs
Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.