Do you have any idea how much energy your business wastes every day? Chances are no, and it could be costing you much more than you think.
The truth is energy waste is hurting businesses. According to Accenture’s New Energy Consumer Handbook, 52 percent of small businesses reported that electricity expenses exceed 10 percent of their annual revenue. And the U.S. Energy Information Administration (EIA) reports that smaller businesses are spending 70 percent more than larger businesses on energy expenses, much of it on wasted energy.
While research indicates manufacturers are spending less on energy – and the trend is continuing to move downward – you can always save more. In fact, Energy Star reports small and medium businesses can cut their energy costs by 10 to 30 percent without sacrificing product or service – if they are willing to invest in the proper technology.
It’s simple: if you reduce your energy costs, you decrease your operating expenses.
There’s also a significant marketing bonus to having an energy efficient policy for your business. More and more customers want to do business with environmentally friendly companies. Show customers you are investing in green practices, and you can charge a premium even as you make more people want to do business with you.
Now Machine-to-Machine (M2M) technology allows you to monitor and analyze energy usage in real time so you can find and correct problems as – or even before – they occur.
M2M technology refers to strategically located wireless sensors, meters and other Internet-connected devices that collect data from your equipment and relay it to a cloud-based command center or IP network, where one of two things happens. The data collected either triggers machines to automatically do something (e.g., turn off or on) based on criteria you have set, without the need for any human involvement. Or you can manually access the data through specialized software on your computer or smartphone, isolate the problems, and take steps to manage the issues. Here are some key ways M2M technology can help you better manage your energy usage and expenses:
- Fix issues before they become big problems
Real-time data alerts you to issues so you can immediately address them before you’re left with a huge electric or maintenance bill. For example, M2M technology allows you to quickly notice a cooling system working overtime in your warehouse. Upon inspection, you discover a faulty piece of equipment running hot and driving up the temperature in the room. You fix the equipment, lower the room temperature and cut your cooling costs. - Increase efficiency
Remote sensors track your manufacturing process so that you can isolate snags, outdated procedures, and other problems that bog down the system and waste energy. Furthermore, you can streamline how you work by programming your machines to automatically perform specific actions eliminating periods of unnecessary usage. - Cut costs
M2M technology can tell you when your machines aren't working properly, and even what you need to do to get them running again. You can diagnose and fix problems and avoid the need to make expensive repairs or purchase new equipment. With regular maintenance, your equipment operates more efficiently, cutting costs and extending the life of all your machines. Finally, because you can program, monitor, and operate major systems such as your heating and cooling equipment from just about anywhere, you can drastically reduce your energy bill.
While the thought of turning your manufacturing warehouse into a smart building can seem overwhelming, some big players in telecommunications are offering businesses targeted M2M energy management options. For example U.S. Cellular recently introduced M2M Business Solutions with a focus on lowering energy costs; other companies offer similar packages. Check with your service provider to see what options are available for your business.
In addition, companies like EnerNOC are catering specifically to manufacturing companies, and offering energy intelligence software that allows customers to track and predict peak demand charges, reduce usage of energy-draining equipment, help plan operations during times when energy is least expensive, enhance energy-intensive systems, and more.
Some business owners may be concerned that this technology is cost prohibitive, but it has quickly become much more accessible for businesses of all sizes. Today's M2M technology allows you to increase your energy efficiency, reduce your carbon footprint – and improve your bottom line.