Business value

11 06, 2018

Energy savings generate 20x more profit than sales

By |2018-06-11T09:19:40-04:00June 11th, 2018|Categories: Business value, Energy management|Tags: , , , |1 Comment

Energy savings are small and unimpactful ...  except  they go directly to profit. How much a company has to produce, sell and ship to make the same profit? With a typical profit margin in manufacturing hovering around 5%, to generate $100K profit a company must sell $100K/5%=$2 mln worth of product. It's 2 weeks of work [...]

24 05, 2018

Ducking peak hours to reduce Global Adjustment is a serious game in Ontario

By |2020-06-03T10:33:18-04:00May 24th, 2018|Categories: Business value, Energy management|Tags: , , , , |1 Comment

Yesterday I attended an interesting presentation at Energy Solutions Exhibition in Hamilton - a serious approach of Peak Power Inc to reducing demand during peak hours. Peak Power considers peak chasing a game of smarts, and they lots of them to the table. Weather your company belongs to Class A of Class B, Global Adjustment is [...]

23 02, 2018

How to help CFO approve your energy project and keep healthy margins?

By |2018-05-01T16:14:03-04:00February 23rd, 2018|Categories: Business value, Energy Efficiency Tips, Energy management, Profitability, Uncategorized|Tags: , , , |0 Comments

Corporations routinely require energy projects to meet a 2 year simple payback threshold, which is another way of requesting a 50% return. Same corporations rarely enjoy returns in excess of 10% in their core business. Are CFOs mean to energy projects, plain stupid, or what? - Unlikely. Slow thinkers do not make it to corner offices. [...]

12 02, 2018

What is the value of saved kWh at your plant?

By |2018-02-12T10:22:47-04:00February 12th, 2018|Categories: Business value, Energy Efficiency Tips, Energy management education|Tags: , |0 Comments

What is the value of saved kWh at our plant? This post continues the discussion about the $value of kWh, started in What is kWh worth at your plant. In that post we talked about effect of operational changes on cost of energy. Today we will talk about how value of energy efficiency projects shows [...]

12 01, 2018

Energy use monitoring is key to buying, selling and implementing energy efficiency projects profitably

By |2020-06-03T10:33:19-04:00January 12th, 2018|Categories: Business value, Energy Efficiency Tips, Energy management education, Uncategorized|Tags: , |0 Comments

Energy accounting is key to success of energy projects Selling, buying and implementing energy projects costs too much effort at both sides of the client-vendor divide, despite the best effort of professionals involved in the process. It does not have to. Why so many projects are either not sold, or not approved, or [...]

31 10, 2017

How can an energy manager travel in time and space to impress CFO?

By |2020-06-03T10:33:20-04:00October 31st, 2017|Categories: Business value, Energy management, Profitability|Tags: , , |1 Comment

Which energy manager does CFO know by first name? Hands-on? Watchful? Strategic? A Hands-On energy manager walks the floor daily to personally check consumption of every machine. He is in one place at a time. A Watchful energy manager installs meters to check real-time energy performance. He monitors several machines at the same time. A [...]

20 09, 2017

Energy efficiency is not about cutting cost of energy anymore, it is serious now

By |2020-06-03T10:33:20-04:00September 20th, 2017|Categories: Business value, Energy management|Tags: , , |0 Comments

Energy efficiency is becoming less and less about direct energy cost reduction and more about meeting demands of customers and governments. A recently published article Who Invests in Energy Efficiency? by American Council for an energy efficient economy sums up a range of studies about driving of energy efficiency investment in business. It comes out energy cost [...]

12 09, 2017

7 plus 2 barriers to success of industrial energy efficiency and how to overcome them

By |2020-06-03T10:33:20-04:00September 12th, 2017|Categories: Business value, Energy Efficiency Tips, Energy management|Tags: , , |0 Comments

Even many C-levels today agree agrees that energy efficiency is important, still too often too little is done. How can this situation be changed? This 2003 article - Overcoming Barriers to Effective Energy Management in Industrial Settings - names several barriers which I list below with my comments: Lack of Organizational Commitment to energy efficiency [...]

8 09, 2017

Massive automation is upon us, how will it affect your plant?

By |2021-12-28T15:27:06-04:00September 8th, 2017|Categories: Business value, Interesting Reads|0 Comments

Last week I had a pleasure of attending an intense Summer Conference set up by Association of Energy Services Professionals - AESP . One and a half days of presentations and panels were kicked off by a thought-provoking speech delivered by Patrick Schwerdtfeger about exponential nature of changes in our life, particularly massive automation [...]

13 06, 2017

More energy data may not benefit business – and what does

By |2017-06-13T13:28:15-04:00June 13th, 2017|Categories: Business value, Energy Efficiency Tips, Energy management education, Uncategorized|Tags: , , |3 Comments

More energy data is better, right? Data shows what's happening, so we should have lots of it to manager machines, right? Not necessarily. Although various meters are becoming cheaper by day, too many of them may hurt your business instead of helping to manage it. When driving, do you really need to know the exact [...]

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