Energy efficiency is a crucial component of cost savings and sustainability for businesses. The first step in optimizing energy use is tracking consumption. Understanding how much energy your facility uses, whether you operate a single site or multiple locations, provides a baseline for comparison and improvement.
Measuring Energy Consumption Effectively
Beyond absolute energy use—such as monthly or yearly totals—it’s beneficial to analyze energy intensity. This involves measuring energy consumption per unit of production, whether that’s per product, per ton of raw materials processed, or another relevant metric. By establishing these benchmarks, businesses can identify trends, inefficiencies, and opportunities for improvement.
Identifying Energy Use in Operations
Understanding where and how energy is used in operations is key. Consider major energy consumers, such as:
Natural gas-powered equipment, including drying ovens and heaters.
Steam generation systems.
Electrical consumption across machinery and production lines.
For instance, if a facility uses a million kilowatt-hours of electricity annually, identifying which equipment accounts for the largest share of that consumption can highlight areas for reduction. This paves the way for implementing Energy Conservation Measures (ECMs)—strategies to reduce energy waste and enhance efficiency.
Simple and Cost-Effective Energy Efficiency Tactics
A common misconception is that improving energy efficiency requires significant capital investment. In reality, many impactful changes are low or no-cost, such as:
Turning off equipment when not in use.
Adjusting operational procedures to minimize unnecessary energy use.
Conducting routine maintenance to ensure equipment operates optimally.
For example, many manufacturing sites operate machinery during downtime simply because “it’s the way things have always been done.” Correcting these habits can lead to substantial savings without requiring new equipment.
Leveraging Energy Savings for Long-Term Investments
As businesses implement these initial cost-saving measures, they generate funds that can be reinvested in higher-cost energy efficiency projects. This self-sustaining cycle funds ongoing improvements and bolsters long-term sustainability efforts.
Additional Benefits: Rebates and Tax Incentives
Depending on location, businesses may be eligible for rebates or tax incentives related to energy efficiency improvements. These financial benefits enhance the return on investment for energy-saving initiatives, making them even more attractive.
Addressing Compressed Air Leaks: A Common Efficiency Opportunity
One often-overlooked energy drain is compressed air systems. Many facilities have significant leaks, wasting large amounts of energy.
A recent SSC assessment at a manufacturing site revealed that compressed air accounted for 25% of total electricity use. By identifying and repairing leaks—often as simple as tightening fittings—energy consumption was reduced by 18%.
To maintain these savings, businesses should implement an ongoing preventative maintenance program, ensuring that leaks are regularly identified and fixed during scheduled plant shutdowns.
The Importance of Submetering
Many companies struggle to pinpoint specific energy waste areas because they rely on a single utility bill for the entire facility. Submetering addresses this issue by allowing businesses to track energy consumption at the equipment level. Modern submetering devices are wireless and easy to install, providing real-time insights into energy use and highlighting inefficiencies.
The Business Case for Energy Efficiency
Energy efficiency is not just about reducing costs—it’s about creating a sustainable, well-managed operation. By tracking consumption, identifying inefficiencies, implementing simple conservation measures, and leveraging rebates and incentives, businesses can achieve substantial energy savings. Over time, these efforts build a foundation for continuous improvement and greater long-term sustainability.
Listen to the Full Podcast Episode
In the full podcast episode, Tad, Nicole, and Kate tackle the following questions:
What is corporate sustainability and why is it important?
How does sustainability relate to a person's company or job, even when it's not their main function?
What are Greenhouse Gas (GHG) emissions?
What the differences are between Scope 1, 2, and 3 emissions?
Why is it important to measure, understand, and reduce your emissions?
How does energy efficiency and waste reduction relate to sustainability?
What are some best practices to increase employee engagement in sustainability?
Click the button below to listen to the podcast on Spotify, Apple Podcasts, or any of our additional streaming platforms.
Free Readiness Assessment:
Get a Customized GHG Emissions Reduction Roadmap from SSC
How Much Progress Has Your Company Made in Greenhouse Gas (GHG) Emission Measurement and Reduction?
Take our quick 7-question readiness assessment to find out.
Step 1: Complete the form and click submit.
Step 2: Receive a personalized action plan from an SSC sustainability expert within two business days.
Video Content
About Kate Caddy
Kate Caddy serves as the Director of Sustainability at the International Sleep Products Association (ISPA), where she leads the organization’s sustainability strategy, initiatives, and programs to support the mattress industry.
Kate works closely with mattress manufacturers, component suppliers, and recyclers to drive supply chain engagement, reduce waste, and promote sustainable practices that advance circularity while maintaining product performance. She also oversees the Mattress Recycling Council’s (MRC) Sleep Products Sustainability Program (SP2), an industry certification that helps manufacturers improve operational efficiency and reduce waste in their facilities.
Kate joined MRC in 2017 as the Northeast Program Coordinator, where she managed MRC’s mattress recycling network across Connecticut and Rhode Island. She later held roles in operations and sustainability, advancing MRC’s mission through cross-functional program development and implementation. Before joining the sleep products industry, she worked in regulatory and quality affairs for nearly 10 years.
Kate holds a Master of Science in Environmental Studies with a concentration in Sustainable Development and Climate Change, and a Bachelor of Science in Business Administration with a minor in Community and Environmental Studies.