Manufacturing industry worst hit amid energy cost crises

Over the past few years, inflation has hit an all-time high, with rates rising as high as 9%. But it’s not just inflation that’s harming businesses, it’s energy prices too.

In the UK, energy prices have been dramatically inflated due in part to the current political climate. Although this negatively impacts all businesses, the worst-hit businesses are those in the manufacturing sector.

Here’s why.

Why manufacturing?

The manufacturing industry in the UK is worth billions. Currently contributing more money to the UK economy than aerospace, it’s an industry that simply can’t be ignored. But it’s struggling.

Manufacturing processes often use extreme heat to create materials and products. And these must be transported once created. This requires ample electricity and gas, both of which are increasingly expensive.

Manufacturing businesses are therefore at a loss. They require huge amounts of energy to operate, but the cost of running machinery is astronomical. So, manufacturing firms are having to make some extremely tough decisions: do they cut production or close their business altogether?

Some other industries that are struggling to keep up with rising costs include:

  • Aviation
  • Shipping
  • Chemical industries.

How can manufacturing companies keep energy costs down?

Although it might sound like it’s all over for manufacturing businesses, that’s not necessarily the case. Often, small tweaks can make a big difference.

For example, many smaller businesses might be able to revert to smaller tools to save some pennies. For example, smaller tools such as handheld grinders use much less energy than larger ones, so a simple swap could be the difference between sink or swim for many businesses.

You can also save costs by looking at your manufacturing motors. For example, by installing variable speed drives in your fans and pumps you can cut your energy consumption in half.

Then, there’s heating. Although nobody wants to work in a freezing cold building, consider turning the temperature down by a few degrees to save money. You should also ensure that your boiler is regularly serviced to ensure there’s no energy wastage.

If you’re serious about keeping costs down, you might even wish to consider recirculating the heat from your production lines to keep your premises toasty warm.

And finally, don’t forget the lights. As well as encouraging staff to switch off the lights when possible, you might also wish to invest in some movement detectors to ensure that lighting only comes on when absolutely necessary.

Final thoughts…

Although tough times are ahead for manufacturing businesses, it’s not all doom and gloom. Luckily, some small swaps can make a big impact when it comes to reducing soaring energy bills. For example, by switching to hand tools, ensuring you’re not being wasteful with energy, and taking steps to reduce your energy consumption, you can ensure your business is around not only today but tomorrow.

 

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