Investment in energy technology could boost UK economy
UK manufacturers could inject an additional £2.56bn into the economy and cut their energy consumption by nearly a third by investing in the latest technology.
If all manufacturers became as energy efficient as the leaders in the sector it could bring an additional £2.56bn in manufacturing economic output by 2025, new Barclays research has found.
With energy efficiency and resilience of supply becoming increasingly critical issues to the UK manufacturing sector, some are considering alternatives such as renewables or self-generation, but take-up remains relatively limited.
Just over a third of manufacturers (35%) say they are currently using or seeking to implement energy efficiency measures over the next year. The planned investments are relatively small, most under £10,000.
While there is growing interest in renewables and new hybrid technologies that allow businesses to streamline their energy costs and plan for the future, the cost of these approaches can be prohibitive.
Buying economically, reducing power requirements and moving to the next stage in lean manufacturing and streamlined processes will be key to competitive success in a high-cost energy environment.
More widespread and accelerated investments in energy management technologies could bring a cumulative increase in economic output of £2.56bn by 2025. Overall energy usage under this alternative scenario would fall by 5.9m tonnes of oil equivalent (MTOE) or 31.6%.
Mike Rigby, Head of Manufacturing, Transport and Logistics at Barclays, said: “Energy resilience and costs are vital considerations for UK manufacturers and are a critical element of our manufacturing sector’s ability to compete internationally.
By considering energy management on the demand side in intensive sectors such as manufacturing, we can ensure the UK remains competitive
Head of Manufacturing, Transport and Logistics at Barclays
“In recent months, attention has focused on the future of energy supply but we need to look at all aspects of energy. By considering energy management on the demand side in intensive sectors such as manufacturing, we can ensure the UK remains competitive.”