Energy efficiency spend to rise, says Siemens

The firm surveyed board directors, senior management and energy managers from 600 UK manufacturers operating across all major sectors and found that 68% of businesses were planning to increase their investment in energy management during the next 12 months, particularly in renewable and self-generation technologies.

Siemens Industry UK’s report The Future of Energy: the UK Manufacturing Opportunity also found that energy management is now being discussed at board level in the majority (89%) of businesses, and that 79% of companies were reporting energy as a business critical issue in the year ahead.

The real reward for business is evidenced in the bottom line

Siemens Industry’s Steve Barker

Of those manufacturers investing in energy management, almost three quarters (72%) reporting a beneficial impact on the bottom line as a result of their efforts.

“Progress in terms of leadership from the top, strategic planning, proactive staff engagement, and increased investment levels are all to be applauded – but the real reward for business is evidenced in the bottom line,” said Siemens industry head of energy efficiency and environmental care Steve Barker.

In the process industries, 91% of firms in the chemicals and pharmaceuticals sectors are discussing energy management at board level, and 68% are planning to increase investment over the next 12 months.

In the Food and Drink sector 84% are discussing the issue at board level, while 64% are planning to increase investment. It is also a board-level issue for 90% of firms producing metals and aggregates, while 72% of businesses in that sector plan to increase investment in the coming 12 months.

The primary driver to invest in energy management has been to achieve a competitive advantage, with the majority of manufacturers measuring the success of an energy management project against these criteria.

However, the Siemens report warns that some businesses still fail to recognise the financial benefits that an energy management strategy can deliver.

“A significant minority of manufacturers are still struggling to recognise the benefits of a strategic approach to energy management, but often the perceived barriers to investment can be easily overcome with the right information and flexible financial support,” added Barker.

“For UK industry, the challenges around managing energy consumption will only intensify in the years to come and doing nothing is not an option for businesses that want to thrive.”