Costs are rising sharply for all in the industry, skilled employees are difficult to find, new competitors keep rising, and cash-strapped consumers have ever dwindling amounts of income to spend on your products. It is, in short, not a fantastic time to be a food manufacturer.

The industry standard for margins is currently at about 5.3% – a 1% reduction from an average of 6.3%. Of this, energy typically accounts for 15% of operating costs.

Why then, is energy not more of a focus?

It’s not so much a case of lack of information as manufacturers are well aware of this figure. Many believe investing in energy efficient technologies is very important to their business.. It is thus clear there is a disjoint between beliefs and actions.

The Pressures are Rising

Unfortunately, economic pressures are increasing from rising and volatile raw material and labour costs. Coupled with cash-strapped consumers from various political fallouts and protectionist policies in foreign markets, the situation is not great.

Many food and drink manufacturers in the UK report having problems recruiting while across the pond in the US, the lack of availability of skilled workers is one of the biggest threats to profits.

Skills issues heighten the focus on automation. So too does the inescapable pressure to innovate. Margins and capex budgets are taking the strain.

Energy prices for the last six months have been unpredictable to say the least, and look to further increase. Thus, improvements to energy efficiency is absolutely imperative – greater use of technologies like AI will make efficient and flexible energy supplies crucial.

And yet, energy strategies for the industry are entirely outdated and left lacking…

Short-Term Fixes

Replace lighting with LEDs to boost energy efficiency. Potential energy savings of up to 75% can be gained from energy efficient lighting. As only 21% of UK food and drink manufacturers report implementation of this, it could give you the edge over your competitors.
Install motion sensors that only activate lights when needed
Achieve savings through the use of effective process measurement and control
Maintaining refrigeration systems properly, implementing ‘on demand’ air compressor management, and regular maintenance on plant are all very simple solutions with an immediate effect.

This is just a selection of hand-picked examples that could give you the edge over competitors and increase your margins. There are also serious gains to be made from new technology, with generation technologies like solar and combined heat and power (CHP) becoming more accessible with each coming year. Further to this, energy insight tools will help pinpoint your energy usage right down to device level.

Knowing where you use your energy will help to identify where solutions should be implemented.

Combined heat and power, for example, can deliver a 40% reduction in energy costs and repays its initial capital outlay in 3-5 years.

Food for thought…

Energy Solutions for Food Manufacturers

By working with food manufacturers, Energy Solutions will help to identify where energy is being used the most. This enables efficiency-boosting remedial action to be taken.

But what about the other industry pressures, how are they navigated?

Well, Energy Solutions will help by ensuring both a flexible and reliable energy supply – supporting increased automation and the implementation of AI. By partnering with an expert energy broker optimises the use of latest technological developments in a cost-effective way, offering ongoing savings year after year… Helping margins while responding to an ever-changing industry.

The ready-made solution for Food Manufacturers 

Flexible contracts are a relatively new contract type that helps to pass on the benefits of the wholesale energy market to consumers. The price that consumers will pay for their energy is strongly dependent on the movements in wholesale market, meaning that there are opportunities presented during periods of volatility.   

As you can imagine, flexible energy contracts are exactly that – flexible.   

The predictable portion of customer energy use can be thought of as the bulk of their demand, with most businesses able to provide very accurate estimations of this through smart meters, sub-meters, and even energy audits. The peak is essentially the spike in demand outside of this predictable consumption – this then forms the tradeable volume that can be traded within flexible contracts.   

You purchase too much energy, and your baseload and peak volumes exceed your profile? Well, just sell the excess back to the supplier.  

You don’t purchase enough energy to cover baseload and peak volumes? Well, just top up with a little extra.  

For those manufacturers with profit margins, it’s a game changer.  

The long-term solution – Why Food Manufacturing and Energy Brokerage go Hand-in-Hand  

One thing that is universal with all sectors of manufacturing is the long hours and demanding nature of the job.  

After a long shift the last thing you want to do is to return home and think about energy.

Dealing with suppliers, complex calculations, paperwork, long phone calls, complex jargon, and even more paperwork…  

We don’t blame you.  

Wouldn’t it be nice to have someone on your side to alleviate the load when it comes to energy?   

That’s when partnering with an energy procurement specialist comes in handy. Acting as a knowledgeable consultant for everything energy, they’ll keep you on the best possible energy contract available to you. Saving you money and time to spend on whatever else you’d rather be doing.  

Energy Solutions by Us, for You        

At a time of great uncertainty in global energy markets, it is easy to feel lost in it all.      

Keeping up to date with developing situations and the associated ramifications is a tricky and time-consuming job. It is also one that is not likely a priority for you and your business.     

So, what do you do?      

You partner with energy procurement experts to take the load off your desk.    

Energy Solutions have been trusted brokers for countless businesses for over twenty years, which means we know how to navigate the energy markets during a time of uncertainty.  

Website: https://www.energybrokers.co.uk/  

Email: nick@energybrokers.co.uk  

Call Us: 0131 610 1688  

WhatsApp: 07757 400 788 