Energy management impacts on company growth
With the growth of global economy, energy demand is also expected to rise. In fact, projections indicate a 75 percent increase in energy demand by 2030. But at the same time, there have been fears of dwindling reserves of fossil fuels, which have been the primary source of energy ever since. Therefore, businesses must now wake up to possible energy shortage crises and initiate better energy management efforts.
Many managements already realize that energy efficiency is the best strategy for reducing energy consumption. They know that it is the most prudent move, much more than buying extra power from reserve plants. The focus here is not just cheaper energy sources, but also cleaner ones.
But there is still a small problem.
Many managements are still looking at energy supplies as if it is all about attaining the lowest impact on their business’ bottom line! But that’s not true.
Today, when one thinks energy, they must think beyond just cost. If businesses leverage savvy providers effectively, they can gain access to real benefits, and which can further enable the interpretation of broader and more nuanced strategies that allow them to enjoy more than lowered costs of power.
Simply, effective and efficient energy management initiatives can significantly boost business growth. Here’s how:
Saving Money, and Lowered Operations Costs
Everyone knows that the global marketplace has become even more dynamic, and is potentially turbulent. The shaky energy prices, characterized by sharp price changes, is only one such example.
But if a business reviews their energy strategies, they save money. How about this for a fact: Data cited on Green Growth website indicates that, between 2010 and 2015, UK recorded a £1.7 billion productivity rise as a direct result of energy efficiency investments across various sectors. Moreover, the businesses could save as much as £1.3 billion by improving the efficiency of their buildings.
Such savings can give businesses the chance to overhaul their operations radically. In turn, they can gain a competitive edge via lowered overheads. Further still, they reduce their business' exposure to the said changes in energy prices as a result of decreased overheads.
Improved Appeal to Customers
It goes without saying: customers are the most important stakeholders for any business. Without customers, there is no business, and the very success of the business depends on them.
Repeat business provides revenue and business certainty; ensuring customer satisfaction and winning their loyalty is the key to retaining them, and the business can focus on its goals and objectives – short-term and long-term. But to provide customer value, businesses must know what they (the customers) want.
As it were, customers have grown increasingly conscious of their health. As such, they have grown conscious of environmental sustainability, especially in view of global warming and climate change, and ‘green’ business is one way to win them over.
Some surveys have confirmed this premise. For example, an E.O.N survey into hotel energy provision (in March 2016) found that nearly 50 percent of guests considered sustainability and energy use in hotels as important factors to them. In other words, customers like to think the business cares about more than just money.
But even more important, the money that businesses save through effective and efficient energy management can be invested in creating customer value in other areas, including – but not limited to – lowered product and service costs.
Naturally, you appeal to customers, you ensure their satisfaction and loyalty, and that is called business sustainability.
Improved Appeal to Investors
Funding is what runs a business. Otherwise, it flounders under the weight of debt – and no company can avoid debts. For that, every business needs investors.
Now here’s the non-secret about investors: they follow the money. Sure, they may care about other things too, like the environment. But no investor – not a philanthropist – is in the mood for charity. In other words, businesses can do whatever they will as long as the money is paid back, with interest of course.
Simply, now that a business has the customers, and the prospects for sustainable business – through customer satisfaction and loyalty – show good promise for a good number of years to come, and business can be sure of a constant supply of investors ready to put in their money.
That money can be used in various ways; as seed money; for healthy cash flow; for repairs; but most importantly for further business expansion. It is what a business needs.
It is important to note that this is different from merely appealing to customers. How’s how it works.
The search for energy efficiency is not just about reducing consumption of energy and emissions of carbon and other greenhouse gasses. Rather, it is also about creating businesses opportunities as well as jobs. That is growth across the entire economy.
And we know what economically/financially empowered customers are like- they are more confident, and their spending power is high.
In other words, the benefits that a business’ energy efficiency strategies spreads to the general population – indirectly – trickles back to the business through customer spending.
The whole process has come to a full cycle.
Energy Saving and Newer Energy Source
In the face of reported dwindling reserves of fossil fuel, it is important to find newer energy sources. When business look to cut energy costs, part of that is cutting on the reliance on fossil energy. In other words, the search for energy efficiency spurs businesses to find other energy sources. This then drives the search for other sources of energy.
As a result, cutting on the use of fossil fuel naturally, helps to curb the limitations of this type of energy source. It is by curbing those limitations, as shown above, that a business creates opportunities for further growth, whether directly or indirectly.
And After All Is Said and Done
After all is said and done, the pursuit of energy efficiency does not have to cost millions of shillings. It just requires an efficient strategy for maximizing energy efficiency.