Energizing an industry

The economic theory of supply and demand developed by Alfred Marshall suggests that prices increase in response to tight supplies and increasing demand. Marshall died in 1924, so he missed two of the better examples of his theory at work — Prohibition, and today's energy supply crisis. It is the latter event that drives many managers to the point where they are at least grateful the forme...

05/01/2005


The economic theory of supply and demand developed by Alfred Marshall suggests that prices increase in response to tight supplies and increasing demand. Marshall died in 1924, so he missed two of the better examples of his theory at work — Prohibition, and today's energy supply crisis. It is the latter event that drives many managers to the point where they are at least grateful the former was repealed.

One expert we interviewed for our May cover story on energy efficiency contends we are "in a new energy world." We tended to view energy consumption as a domestic issue, but we no longer have that luxury. The world wants what we want, and with the same intensity we want it. Demand is growing, and supply hasn't kept up.

So if lower demand isn't going to happen, what's left as we seek to grow business? Making better use of our supply.

Energy powers every machine and lights every room in our manufacturing facilities. It keeps us cool, or warm. It keeps us productive. Energy consumption will also power profitability this summer, and for the summers and winters to come. It must be viewed as a manageable cost center that can influence whether a company survives or fails.

It is time to get serious about energy efficiency. PLANT ENGINEERING is leading that effort this month with a comprehensive look at how some of our best companies — large and small — have tackled the issue aggressively. They have made energy efficiency a core value, and have allowed their people to champion its proliferation throughout their organizations.

Beyond just writing about energy efficiency, however, we're taking one more unprecedented step this month. We're putting the tools of energy efficiency and the knowledge of successful companies in your hands.

This month, every PLANT ENGINEERING subscriber with an email address will receive links to two new reports on energy efficiency: The National Association of Manufacturers' Energy Efficiency, Water, and Waste-Reduction Guidebook for Manufacturers and Energy Management Pathfinding, published by the Alliance to Save Energy. These links will be distributed through PlantMail! our electronic newsletter.

More than telling us what the problem is, these books offer excellent, on-the-ground ways to improve energy efficiency, with some of America's best companies as examples. We believe these guidebooks are outstanding resources to address this problem. We appreciate the support of both agencies for this email effort — perhaps the largest of its kind ever undertaken in this industry.

The guidebooks and the case studies offer solutions, but plant leaders must take them to heart, and to their boardroom. You power machines, but you empower people. That energy source, I am happy to report, is in ample supply. The demand for a nation of empowered people, however, has never been higher.

Alfred Marshall's theory of supply and demand covers goods and services, not the movement of human capital. In the summer of 2005, the demand for energy will tax our human and business capital like never before. How we meet this challenge will shape our present, and our future.





Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2017 Top Plant.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
May 2018
Electrical standards, robots and Lean manufacturing, and how an aluminum packaging plant is helping community growth.
April 2018
2017 Product of the Year winners, retrofitting a press, IMTS and Hannover Messe preview, natural refrigerants, testing steam traps
March 2018
SCCR, 2018 Maintenance study, and VFDs in a washdown environment.
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
December 2017
Product of the Year winners, Pattern recognition, Engineering analytics, Revitalize older pump installations
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
April 2018
Implementing a DCS, stepper motors, intelligent motion control, remote monitoring of irrigation systems
February 2018
Setting internal automation standards

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

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Maintenance & Safety
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Industrial Analytics
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IIoT: Operations & IT
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Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
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