No matter what kind of business you operate, the bottom line is always going to be the driving force behind each decision. Ensuring the bottom line is healthy is what keeps the business afloat and ultimately successful. With that said, it is a constant struggle for business owners to ensure they are making the best and most cost-effective choices when it comes to operating their business. Nowhere is this more evident than with a manufacturing business that has so many different wheels turning at once.
So, what are the costs worth keeping an eye on?Here’s one you may not have thought of immediately, but it definitely deserves attention -did you know that the energy costs can not only balloon out of control but can also end up taking a serious bite out of profits if you aren’t careful? Here we’ll take a closer look at why exactly business energy costs can prove to be such a drain on a manufacturing business, and what you can do about it.
It’s a Simple Case of Usage
When it comes to why business energy costs can be a drain on your manufacturing business, the answer is as simple as you may have thought – a lot of energy use leads to high bills. And this is exactly where so many businesses stop and don’t question the cost any further. They have a large manufacturing space with plenty of machinery, equipment, and staff, so it seems completely normal that the energy bills should be high.
But here’s the thing, businesses shouldn’t just accept this as fact. It’s time to start looking at your manufacturing business’s energy costs in a new light, and look for ways that you can lower them and make processes more efficient without any sort of sacrifice to the quality and productivity of your company.
Conduct an Energy Audit
So, you can’t just turn off the utilities and operate your business without using energy, so what’s the solution? A great place to start is with an energy audit. It is extremely difficult to know what your costs are, what are the biggest drains and offenders, and which areas are actually doing well if you don’t do an audit. Here in the UK you can bring in professionals to conduct a thorough energy audit of your entire business and operation, highlighting all the details and pointing out potential areas for savings.
Compare Energy Prices
You may also be under the impression that the utility provider you are with is the only option out there, and energy rates are universally set and everyone offers the same pricing. Neither of these assumptions is correct.
Utility Bidder acts as a business energy comparison brokerwhich will take a look at business energy rates from some of the top UK suppliers. It will find you the best price out there, which can result in hundreds if not thousands of pounds worth of savings. This especially important in today’s landscape where energy prices constantly seem to be on the rise. As an energy broker, they can help businesses of all sizes, and in all industries.
Replace Energy Guzzling Equipment
This is also a great time to start replacing all that equipment that is known as an energy guzzler. This can be minor things like computers and printers, all the way up the chain to the actual machinery on the manufacturing floor. Energy star rated appliances and machinery will offer massive savings on your utility bills.
Run Machines in Off-Peak Hours
This particular tip can offer huge savings on energy costs, and can be taken straight from the playbook of homeowners. Whenever possible, try to run machines and production outside of the peak hours of the day. This may mean it makes more sense for you to run production in the overnight hours. It is something to at least consider as you look at way to cut down on costs.
Put an Energy Management Team in Place
And if you want to get really serious about your energy consumption, you can put a permanent energy management team in place. This department will constantly be monitoring the energy usage and finding ways to make improvements. It can help your long-term plans and budgeting where energy is concerned.
Lowering the Costs and Raising Profits
At the end of the day, any time you can lower energy costs, you will effectively be able to raise the profits – which is what any manufacturing company aims to do. It’s a matter of investigating your energy usage, looking for areas of potential savings, and then taking all the necessary steps.