Energy efficiency: a bright way to power up your savings!
From NZ Manufacturer magazine March 2025 www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu -Insa Errey, Advisor to NZ Manufacturer, Genesis, Senior Manager Future Fuels. Energy efficiency is increasingly becoming a key factor to drive cost reductions, especially in the manufacturing sector. As manufacturers seek ways to remain competitive and reduce operational expenses, energy costs should become the primary target for cost-cutting measures. By improving how energy is used, it can reduce bills, boost productivity, and contribute to long-term sustainability. The Link Between Energy Efficiency and Costs In manufacturing energy cost can account for up to 20% of total operational expenses, these costs can vary depending on the industry and the energy intensity of the product. Energy costs, in many cases, are second only to labour in terms of operational spending. Leading to improving energy efficiency delivering substantial financial benefits. Energy efficiency involves the reduction of energy consumption without compromising output or quality. The savings generated from these measures can translate directly into reduced operational costs and higher profit margins. Significant savings can be realised with low to no cost process optimisation. While other opportunities may involve initial investment which can seem significant, the return on investment (ROI) is often reached quickly through reduced energy costs. Global insights from the International Energy Agency (IEA) show that in some industries, energy efficiency projects can pay for themselves in as little as 2-3 years. Beyond immediate savings, energy efficiency improvements can provide long-term financial benefits. Energy efficiency can help mitigate the impact of rising energy prices, making it easier for manufacturers to predict future costs and avoid unexpected increases in energy expenses. Even small reductions in energy costs can make a big difference to the bottom line. Another consideration is that energy efficiency can also provide […]