High utility bills hold the key to cost reductions
21st May 2018
Research has just been released that shows that two out of the top three biggest concerns of Britain’s manufacturers relate to energy . With this in mind, the need to be in control of energy consumption is now a key driver for all businesses.
However, the majority of manufacturers are currently still locked into high utility bill costs as a result of old inefficient lighting, which could be significantly reduced via a high quality LED upgrade. Harvey Sinclair, CEO of Energy Works explains: “LED lighting upgrades are capital intensive, with payback periods of around 3-4 years, consequently LED upgrades are often a lower priority compared to other capital projects, as a result 80% of companies in the UK are still yet to do an LED upgrade”.
Although other business priorities, or a lack of capital, can move lighting down the agenda, on average it still accounts for over a third of a warehouse or manufacturing facility’s electrical consumption. By delaying an LED upgrade, companies are literally burning cash.
Having launched “Light as a Service” in 2014, Energy Works has enabled companies to get the best of both worlds; preserving capital for core projects, whilst enabling a transition to high quality LED lighting without the need for investment. The concept is simple, re-purpose a portion of the utility cost savings that the LED solution unlocks to fund a fixed monthly service payment and get a maintenance free solution for 5 years.
To put this into perspective, Sinclair says: At Energy Works, we have estimated that customers who are saving £100,000 of net savings a year as a result of our LED upgrades, would have had to generate £2m+ of additional revenue to generate the same result!”
He continues: “Although the cost savings on LEDs upgrades are significant, more and more of our customers are also reporting that soft benefits are now outweighing the utility savings. These include improved production efficiencies, lower scrap rates and improved staff morale, resulting in reduced absenteeism.
Sinclair concludes: “Doing nothing shouldn’t be an option” companies have no need to accept poor quality lighting and excessive utility costs, when “Light as a Service” can enable a high quality, maintenance free LED upgrade, risk free for no capital investment.