Manufacturers' Corner: Keeping Tabs on Energy Expenses
Manufacturing consumes the largest share of energy within the industrial sector, according to the Manufacturing Energy Consumption Survey (MECS). In this post, we’ll look at some easy ways manufacturers can reduce their electricity usage and lower carbon emissions – by simply analyzing their electric bills more closely.
Industrial manufacturers are making headway in terms of energy efficiency gains and reducing carbon emissions, but for the vast majority of smaller manufacturers, shrinking their environmental footprint would be more impactful if they could also guarantee that money will be saved in the process.
The rising cost of energy for industrial manufacturers
Over the last several years, electricity prices for industrial customers have continued to climb across the United States, averaging $08.06 per kilowatt hour in 2023.
Average retail electricity price for industrial consumers in the United States, 1970-2023
Source: Statista
In reality, most companies don’t pay attention to the cost per kilowatt hour they’re paying. They simply focus on the cost of the bill (or bills) at the end of the month, since many manufacturers often have multiple utility meters on site.
Who has time to dissect electric bills?
Smaller manufacturers (those with 20 employees or less) represent 74% of the manufacturing industry in the US today, according to the National Association of Manufacturers. For these companies especially, the cost of electricity represents a hefty share of operational expenses.
But keeping an eye on rising energy expenses is not top of mind for them, as the day-to-day pressures of running the business often mean other issues take precedence: from supply chain challenges to the high cost of capital to workforce challenges.
That’s where artificial intelligence can make a big difference. With the right AI-powered tools, monitoring energy expenses can be automatic.
Enspi Bill Analyzer enables companies to monitor their energy spending without adding high-maintenance software or monitoring devices. Using just the past three utility bills, Bill Analyzer can detect patterns in an operation’s energy use, and identify where the greatest savings can be realized.
Quick Wins and Long-Term Strategies
By reviewing your ongoing spending and electricity use, Bill Analyzer can find easy wins quickly – from identifying inaccurate meter readings or incorrect tariff classifications, to zeroing in on excessive demand charges.
Bill Analyzer will make recommendations on small changes to a company’s operations to take advantage of time-of-use rates, laying the groundwork for a long-term energy strategy that aligns with a manufacturer’s future growth and operational strategy.
For a look at what Bill Analyzer can do for your business, sign up for a quick demo today.