National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Energy Efficiency Goals Give Manufacturers an Edge
Forty-three percent of the nation’s largest manufacturers have established robust public targets to reduce their energy use, and 79% have set ambitious public goals to reduce their greenhouse gas emissions, with a good number of companies doing both. Those are among the top-line findings of a newly-issued analysis by the Alliance for Industrial Efficiency.
“We discovered that instituting energy efficiency targets helps manufacturers save money, improve performance and increase competitiveness,” said Jennifer Kefer, the alliance’s executive director. “Setting public targets also signals to shareholders and funders that companies are good actors and worthy investments.”
The Alliance’s examination of 160 of the nation’s largest companies covered a combined 2,100 manufacturing facilities across the U.S. It included a wide range of industries, from aerospace and defense, to food, beverages, and tobacco as well as those in healthcare, household products, apparel, chemicals, technology and automotive sectors.
For example, Cummins Inc., a Colunbus, IN-based maker of heavy-duty engines and power generators (pictured), has saved $40 million to $50 million annually since 2006 through its energy-efficiency efforts. “We set a goal, achieved it, were proud of it and were recognized for it,” said Laurie Counsel at Cummins. “It added to our brand value and sense of accomplishment.”
There are barriers to industrial end-use energy efficiency. These include so-called “opt-outs,” provisions that weaken utility industrial efficiency programs by creating special exemptions for large energy users. Utilities also create obstacles by imposing prohibitive standby rates on companies that use combined heat and power, and waste heat to power systems.
Ultimately, the alliance said, companies that don’t set energy-efficiency targets because of these barriers, lose out on big savings and risk falling behind the competition. The alliance’s report said that states and utilities need to be part of the solution to help manufacturers become more efficient.
For comments, questions or concerns, please contact Paul Bubny
