Power, energy & renewables


PragmaTic ProcuremenT:


Tackling The challenge of energy inefficiency


Matt Watson, European manufacturing sector expert at Aggreko, discusses how flexible energy solutions can help companies increase efficiency and reduce costs in the face of rising energy prices and the drive to reduce emissions.


legislation creating pressure to continually update equipment. In light of the escalating energy crisis and its impact on markets, manufacturers have reined in their growth forecasts for 2023, according to Make UK. These tough times mean facilities managers across the manufacturing industry have accelerated their efforts to cut energy usage. In a recent report, the world’s leading energy


T


authority IEA, have claimed the energy crisis has strengthened the economic arguments in favour of cost-competitive, cleaner technologies. Rising energy costs are ultimately compelling manufacturers to examine their current practices and explore solutions to meet ongoing challenges.


EffIcIEncy now Aggreko’s recent Greener Manufacturing report highlighted that industrial facilities are too often relying on power and temperature control systems which are oversized or poorly matched for their chosen application, which can prove inefficient. This prompts a serious challenge for companies, as while they face pressure to cut costs, they also suffer from inefficiencies hitting their bottom lines. These live issues facing manufacturers, require urgent solutions to support organisations needing to alter operations to best grapple with the current market climate.


8


he British manufacturing sector is facing serious short and long-term challenges with rising energy prices eating into business finances, and ever-stringent sustainability


Energy inefficiency is both a cost and


sustainability issue - ill-suited equipment works- against goals to reduce emissions. Another recent report from Make UK, has found that 96 per cent of manufacturers are either already decarbonising their operations or have plans to do so. This demonstrates the importance businesses are placing on starting their journey towards sustainable practices and makes energy efficient equipment crucial to the development of the manufacturing sector. The issue of escalating energy prices requires


new and innovative approaches across industry. Inefficient energy practices are not only pressing due to the current crisis but also contribute to the broader long-term sustainability challenge the industry must overcome.


PrEParaTIon ovEr PrEdIcTIon To successfully address wasted energy due to process inefficiencies, businesses must be supplied with technologies that can be efficiently integrated into existing manufacturing production infrastructure. However, the industry-wide clamour for environmentally friendly solutions poses serious considerations for how companies should procure solutions, and whether established practices are suited to new market challenges. If the last few years have taught us anything,


it is that industry must incorporate volatile sector realities into their long-term plans, for example, by being able to scale their activities up or down in light of changing demand. By not doing so, manufacturers can be left with


excessive costs due to ill-suited equipment infrastructure or may find their current capabilities restrictive as they are unable to bolster production in face of rising demand. The regulatory framework manufacturers work


within also poses serious difficulties with questions looming over the future of legislation. For example, uncertainty surrounding whether the UK will continue to mirror EU sustainability standards in the face of rising energy costs continues to endure. These uncertainties mean compliant technologies today may not be so tomorrow. Moreover, manufacturers committed to updating their facilities with greener technologies could struggle to continually do so as new equipment innovations are developed. The capex incurred continually updating equipment by purchasing permanent sustainable technologies is therefore not only proving difficult as businesses work within tight margins, but also a far from cost-effective option.


PragMaTIc ProcUrEMEnT In the current energy crisis manufacturers’ ability to plan for the future is severely hampered. With increasing competition from overseas, an unpredictable regulatory framework, and an uncertain market, short-term solutions must coincide with a forward-thinking approach. Permanent equipment procurement may therefore not be suited to a radically changing technological landscape and an almost unknowable economic future. Plans must ultimately be grounded in the reality of continuous industry unpredictability.


Winter 2022 UKManufacturing


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45