U.S. manufacturers on the cusp of investing to boost capacity face a great opportunity to incorporate energy efficiency in their decision-making.
The industrial sector is close to reaching capacity at a time when shipping costs are making domestic production more attractive. This leaves the door open for manufacturers to shift energy use patterns toward efficiency when they make future capacity investments, according to a new report from the American Council for an Energy Efficient Economy (ACEEE).
"This period of capacity investment represents a once-in-a-generation opportunity to lock in energy efficiency in our domestic manufacturing base," said Neil Elliott, ACEEE's associate director for research and lead author of "Trends in Industrial Investment Decision Making."
"Industrial energy efficiency programs are positioned to exploit a rare opportunity to change energy use patterns for years to come, but they must begin engaging with their industrial customers now."
Tight capital markets and uncertainty has many sectors watching their expenditures. Manufacturing, however, is beginning to return to the U.S. amidst skyrocketing marine freight costs skyrocket and weak dollar. In the near future, several industries will be ready to open their wallets.
"Industry makes all capital investment decisions in cycles that vary by industry, and multiple external market factors affect these decisions," said Anna Chittum, an ACEEE industrial research associate. "Energy efficiency program managers need to make their recommendations as part of that cycle to be effective in achieving energy savings for industrial customers."
The report said capacity rates for crude, primary/semi-finished goods and finished goods are trending toward historical highs of the early 1980s and late 1990s. Steel represents one resurgent market, with roughly a half-dozen mills planning expansions. |
