More than half of U.S. companies to increase energy efficiency investment in 2015
Schneider Electric survey reveals acceleration in efficiency funding amid convergence of information technology and operational technologies.
Warehouse in the NewsThe State of the DC Voice Market Cold Chain Embraces Automated Storage Totes keep produce fresh from field to store JDA partners with AWESOME Vecna Robotics names CEO Daniel Patt, former head of DARPA Autonomy More Warehouse News
Warehouse ResourceThe State of the DC Voice Market Available On-Demand. Watch Now.
Three quarters of decision-makers at U.S. companies have invested in energy efficiency programs in the past 12 months, and 56% project their investment in energy efficiency next year will be greater than last year.
These are among the findings of a survey by Redshift Research fielded in August 2014 and commissioned by Schneider Electric. Results reflect the perspectives of 301 respondents at companies with at least $50 million in revenue with a decision-making role in facility management, operations management, technology management, supply chain management or energy/efficiency management.
In total, respondents reported a 12% increase in energy efficiency investments, while projected investments have increased 13% from the results of a similar survey in June 2013.
“Increased investment suggests business leaders are seeing a return,” said Laurent Vernerey, president and CEO, North America operations, Schneider Electric. “In fact, more than half (51%) of respondents said they realize at least a 25% ROI on efficiency initiatives. This type of return will drive more investment in efficiency applied across the enterprise – beyond energy consumption - as organizations find that they must become operationally efficient to remain competitive and profitable in today’s environment.”
The survey suggests a potential driver of investment is the ability to measure results, a capability rooted in the convergence of information technology (IT) and operational technology (OT). When asked about the biggest trends impacting business today, more than half (56%) of respondents cited this trend, with 61% saying that energy efficiency was its biggest benefit. Byproducts of increased efficiency, including cost reductions (48%) and optimized business processes (43%), were also reported as benefits.
However, respondents also acknowledged that this trend comes with its own set of challenges, including more complex technology management (55%), security (54%) and conflict between IT and operations staff (47%).
The survey also identified modernization as another issue at the top of decision-makers’ agenda. After IT and OT convergence, 51% of respondents cited infrastructure modernization as a business priority. A further 48% believed public infrastructure upgrades would make would positively impact their businesses, which breaks down into electrical systems (56%), traffic/transportation systems (53%) and telecommunications (48%).
Efficiency initiatives (12%) and sustainability demands (9%) rounded out the list of the biggest trends.
Subscribe to Modern Materials Handling Magazine!Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!
The Big Picture: Navigation Gets a Reboot for Automatic Vehicles Top 20 3PL Warehouses 2017: Growth amid change View More From this Issue