As Temperatures Rise, Manufacturers Must Evaluate Energy Efficiency

With summer bringing scorching temperatures, manufacturers face the significant challenge of keeping their energy costs in check while maintaining production efficiency. 

The summer season began with near-record heat. June 2024 was the second-hottest June on record in the U.S. according to the National Oceanic and Atmospheric Administration (NOAA). Most of the country experienced warmer than normal temps and the remainder of the season is expected to bring more rounds of heat across the U.S.

With most signs pointing toward a continuation of the hot-weather trend into early autumn, energy decision-makers at companies of all sizes must determine how to manage their energy costs.

There are several impactful strategies manufacturers can employ to save money on energy during this season — strategies that could be just as impactful come winter, too. Here are some implementable ideas to help manufacturers optimize energy usage while reducing expenses even when weather is extreme. 

Seasonal Efficiency Insights for Manufacturers  

Become familiar with your energy bills.

You can’t reduce your energy usage and support your bottom line until you understand your organization’s current and historical energy usage. An experienced energy supplier can be a key partner at this stage.

About half of a company’s energy bill is driven by its energy demand. Demand measures the largest interval of power used during the billing period, while consumption measures the total quantity of power manufacturers used during the billing period. The demand an organization is billed for represents the peak amount of power used at any one time during the billing period.

One of the most effective ways to save on power costs is to reduce peak demand — the time when a building’s energy usage is highest and is most common when a team is at its busiest. To identify if the peak demand your organization is being billed for happens often, start by reviewing a year’s worth of interval meter data.

From here, energy efficiency efforts can help save organizations money by lowering the demand required to run your facilities.

Establish a benchmark for your organization’s energy usage. 

Energy benchmarking is a results-driven approach that enables internal comparisons of energy efficiency efforts and helps organizations ensure their efficiency efforts are successful. Regardless of the type of building or facility, having an energy benchmarking plan is fundamental to immediate and long-term sustainability and fiscal strategy.

With an understanding of where operations are currently, manufacturers can determine when and how their team is using energy, as well as the impact on energy costs. For help in gathering and analyzing this data, it can be beneficial to consult with an expert, such as your energy supplier. Businesses are most likely to have success implementing energy efficiency efforts and controlling costs when operations, maintenance and financial teams work together.

After an energy review with internal and external experts, implementing a real-time monitoring program can help identify usage patterns and opportunities for efficiency improvements, benchmark usage before improvements and verify the impact of these improvements. A monitoring program allows manufacturers to make informed decisions regarding energy allocation, peak demand management and equipment optimization.

Make efficiency upgrades. 

Below is an overview of steps your organization could take this season to reduce energy consumption and ultimately lower spend:

• Upgrade lighting systems: Switching to energy-efficient LED lighting options can significantly reduce electricity consumption. LED lights consume less energy and emit less heat, reducing the strain on cooling systems. Installing motion sensors or timers in less frequently used areas can further improve lighting usage and decrease energy waste. 
• Schedule energy-intensive operations: Plan energy-intensive operations, such as equipment maintenance and cleaning, during off-peak hours or cooler parts of the day. By avoiding peak demand periods, manufacturers can take advantage of lower energy rates and reduce strain on the electrical grid. This strategy not only saves money but also helps prevent potential power outages during high-demand periods.
• Implement energy-efficient cooling systems: Upgrading to energy-efficient cooling systems, such as high-efficiency air conditioning units or evaporative coolers, can significantly reduce energy consumption. These systems use advanced technologies to cool the manufacturing facilities while consuming less power. Additionally, regular maintenance and cleaning of cooling equipment is crucial to ensure optimal efficiency. 
• Optimize ventilation: Proper ventilation is essential for maintaining a comfortable working environment and reducing the need for excessive cooling. Implementing natural ventilation techniques, such as installing vents and louvers, can help circulate fresh air and reduce reliance on mechanical cooling systems. Additionally, using programmable thermostats can help regulate temperature settings based on occupancy and production needs. 
• Make time for employee awareness and training: Educate employees on energy-saving practices and encourage their active participation in energy conservation efforts. Simple actions such as turning off lights and equipment when not in use, properly insulating doors and windows and reporting energy wastage can collectively make a significant impact on energy consumption.

By implementing these energy-saving tips, manufacturers can significantly reduce energy costs while supporting productivity during hotter months. Embracing these practices not only benefits the bottom line but also contributes to a more sustainable and more environmentally responsible future.

Brent Rice is Quantitative Analyst and Meteorology Lead at IGS Energy. As a member of the Forecasting and Supply Analytics team at IGS, Brent's responsibilities include offering pertinent weather forecast information to members of the company’s supply team and contributing analytical skills and forecasting expertise to various departmental projects. He received his Bachelor’s degree in Meteorology with a concentration in Weather Risk Management from Penn State University and Master’s degree in Computer Science with a concentration in Machine Learning from Georgia Tech.