What It Takes to Excel at Energy Management

Manufacturers that are the good at managing energy consumption include energy usage in their sustainability strategies and invest in appropriate technologies, an Aberdeen Group study says.

Posted on Jun 17, 2009

Manufacturers that are better than their competitors at managing and reducing energy consumption are more likely to include energy management in their overall sustainability initiatives, more likely to make use of real-time and historical energy consumption data, and more likely to invest in technology for automating energy management, according to a recent report produced by the Aberdeen Group.

Based on a survey of 230 executives, the study attempts to differentiate the behavior, policies, and priorities of manufacturers that are best-in-class from other manufacturers. The study defines energy management best-in-class companies as those that have achieved at least a 15% reduction in energy consumption, at least 90% overall equipment effectiveness (OEE), and operating margins of at least 14%.

Among such companies that are best-in-class in energy management, the Aberdeen report says, 82% have standardized processes for monitoring energy consumption across the enterprise. That compares with only 31% of what Aberdeen calls laggard companies that have done so. Fifty-seven percent of energy management leaders establish short- and long-term goals for individual plants, compared with only 30% of laggards that do so.

At the same time, the study says, leaders do a better job of using data and knowledge about energy management. Sixty-seven percent automatically and centrally collect energy consumption information, compared with only 19% of laggards that do so, Aberdeen says. And 62% of leaders make both real-time and historical energy usage information available to decision makers, compared with only 21% of laggards that do so.

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