Barry Cracket is a product designer at Brushtec, an industrial brush manufacturer that has dramatically improved its profit margins by increasing its energy efficiency. In this article, he shares his thoughts on the benefits green technology can have on your business.
Many of us are concerned with the impact man-made climate change is having on our planet, and improving your business’s energy efficiency can help combat this. However, while many business owners are concerned about the future of the planet and want to do their bit to combat global warming, they have to put the interests of their business first.
It’s important to understand that improving your business’s energy efficiency goes hand in hand with increased profit margins. In fact, according to The Business of Energy Efficiency report from The Carbon Trust, the UK’s large businesses alone could save £1.6 billion a year by improving their energy efficiency.
In this article, I’ll demonstrate how your business can benefit from a focus on energy efficiency, as well as share an example of how a small change can have a huge impact on your bottom line when it comes to green technology.
Here at Brushtec, a lot of our clients were badly affected by the economic downturn, and our sales suffered as a result. With less money flowing in to our business, we turned our attention to our outputs instead to see if there were any changes we could make reduce our expenses. Being a manufacturer, energy use is always a big output, so this was the first area we scrutinised.
After performing our own energy review by looking at our monthly spend and researching the alternatives, we discovered lighting was an area where we could make some big savings. Simply switching to energy-efficient, LED lightbulbs has substantially cut our energy bills over the last few years.
The initial cost of installing these lights wasn’t insubstantial, with each bulb coming in at £100. Because of this outlay, it took around a year to start seeing dividends, so anyone thinking of making a similar investment should realise it won’t lead to short-term savings. However, since that first year, we’ve saved thousands on our energy bills each year as well as reducing our CO2 emissions by over 9,000kg each month.
Furthermore, as the government has international emissions targets to hit, they offer incentives to any business that does their bit to reduce the UK’s carbon footprint. For example, according to their website, your business will benefit from a tax relief if it invests in energy efficient technology. These green incentives are another great benefit that comes with making energy efficiency a priority in your business.
While a slow period caused by the financial crisis gave us the push we needed to analysis our energy consumption, you shouldn’t make the same mistake. Schedule time to analyse your business’s energy bill and do your research into energy-efficient alternatives, and like us, you could shave thousands off your energy bills.
As our example shows, something as simple as upgrading your lightbulbs can make a big difference to your monthly outgoings and drastically decrease your carbon footprint. For your business, you might find installing solar panels or switching to a more energy efficient type of heating can make a similar impact on these crucial metrics.
Perform your own energy review to find out how the latest green technology could benefit your business, as well as the planet.