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Strategic Energy Management to Stay Competitive

Your Competitors are Leveraging Energy Management

March 23, 2016 / by Max Dworkin

Imagine your CEO came to you and said: “In the next 12 months, we want to increase our profits by 15%. But we don’t have any additional inventory. And we can’t fire anyone.”

What would you do?

You’d probably look at her like she was crazy. You might cry a little. You might even decide to quit rather than continue working for someone who has no idea what the words “profit” and “inventory” mean.

But increasing profit margins without selling more or eliminating personnel is possible if you decrease operating expenses. Adidas did exactly that when they reduced their energy spend by 20%. The money that they saved was the equivalent of selling 15 million pairs of shoes, without the overhead of making and selling more shoes.

Yes, strategic energy management can and does make a huge difference to your place in the competitive landscape, no matter what your industry is.

How Energy Management Makes You More Competitive

The U.S. business landscape is competitive. Not just nationally, but also internationally.  Your company simply cannot afford to underperform. When you are short on resources, it is a lot to ask to add more to your plate by investing in new strategies. But the fact is that an investment in energy management is a path towards a brighter -- and more competitive -- future.

Make More Room in Your Budget

The economy in 2016 has still not completely recovered from the recession it faced just a few years ago, which means that across the board companies just like yours are looking for ways to find the money for essentials in their budget. Consider the fact that for commercial buildings, utilities including water and power amount to approximately 22% of total operating costs. That means 22% of your operating budget is going to keeping the lights on and water flowing.  If you could reduce that giant chunk of budget, you would have more to invest in other aspects of your business, like growth initiatives and new business development. This rearranging of budget dollars could have a huge effect on how you rank competitively.

Slow Cost Growth

Strategic energy management can make your energy costs more predictable. Unmanaged energy can lead to fluctuation in spending from quarter to quarter or even from month to month, which makes it all but impossible to know how to budget and where to cut costs. When you start down the road towards a strategic energy management plan that is integrated with your larger business goals, you will learn where your energy budget goes and ultimately determine the best ways to control those costs so that you can not only manage spending but plan it in a way that makes sense for the overall budget. When you are able to reasonably assess the costs you face each quarter, you can prepare to be more competitive during that same time frame.

Look to the Future

While the term “sustainability” has become somewhat synonymous with “environmentally friendly” the truth of the word is much simpler and less politicized. If you want your company to be sustainable, that means you want it to survive and thrive through the coming decades. You cannot predict the range of technological advancements that may lay change to your industry, but you can ensure that your energy plan is itself sustainable, which will allow you to remain competitive.

Conclusions

You may not have access to the specific energy management plans of your direct competitors, but you can be sure that if they are not currently leveraging strategic energy management practices, they will be soon. By exploring what strategic energy management could mean for your bottom line - from cost savings to growth support - you can stay on par with the biggest players in your industry and even move to pull ahead.


For more information on how strategic energy management works, be sure to download our eBook below:


Introduction to Energy Management

Topics: energy management, energy consumers

Max Dworkin

Written by Max Dworkin

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