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Unformatted text preview: % of respondents,
was the need to reduce their manufacturing costs. In fact, there is ample opportunity to decrease
costs through energy efficiency; it has been estimated that 18% of the industrial sector's baseline
forecasted consumption in 2020 can be eliminated using proven techniques to achieve greater energy
efficiency, corresponding to industry-wide savings of $47 billion per year.. Furthermore, these cost reductions can have a direct impact on profits. For example, although energy typically only
comprises 5% of overall operating costs for manufacturing companies, a company with a 5% net
profit margin will experience a profit increase from 5% to 6% with a 20% reduction in energy use or a 20% profit increase.
associated costs, into overhead or facility budgets, essentially making them hidden from direct production costs.
Low-energy intensive industries were defined as those with less than 10 BTUs of energy per dollar value added (a) Google Books ngram for the phrases "energy efficiency" (blue) and "oil
prices" (red) between th...
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- Spring '14