Eight Characteristics of Successful Energy Management

The National Association of Manufacturers (NAM) has set itself up on the front lines of the fight against high energy costs. It is actively lobbying Congress to abolish the federal moratorium on drawing natural gas and oil from the outer continental shelf (OCS), the submerged areas off the U.S. coast, and likewise the Arctic National Wildlife Refuge (ANWR), where federal protection has kept energy companies from drilling for oil. While it works to effect change at the source level, the NAM also offers advice for energy management at the company level. In a report titled, "Efficiency and Innovation in U.S. Manufacturing Energy Use," produced in collaboration with the Alliance to Save Energy, the NAM identifies eight characteristics of successful energy management:

• Fundamental business viability: Front-office distractions such as merger or acquisition discussions, labor disputes, bankruptcy, and others can severely compromise a company's ability to manage energy wisely.
  
  
• Ability to learn, document, and replicate: Multisite manufacturers must work to replicate energy-efficiency techniques at all locations.
  
  
• Energy leadership: A manager or executive who understands and champions wise energy use can make all the difference.
  
  
• Willingness to purchase energy on the open market: Buying on the open market can yield significant savings, but it also requires a concerted effort among procurement, production, and maintenance teams.
  
  
• Leadership intensity: A company that is serious about energy management will hold employees to the goals it sets along the way.
  
  
• Positive and productive staff: Line-of-business workers have a stake in such efforts, and their buy-in will help determine the projects' success.
  
  
• Criteria for fiscal decisions: Energy costs involve much more than just a monthly number. Investments in energy management products can appear sizable, but lifecycle costs and return on investment should be considered.
  
  
• Strength of engineering discipline and procedures: A manufacturer's competency in benchmarking, documenting, comparing, remediating, and duplicating improvements will determine the future success of energy cost reduction.