Success Story - "Utility Cost Reduction"
$100 Million Midwest Factory
Company Situation and Problem
High-cost product; declining sales; marginal profitability; old and poorly maintained production facility; high electrical and natural gas usage; high natural gas prices; Purchasing organization not involved in energy purchases; not taking advantage of special savings available; gas supplier margin and delivery rates appeared high; processing equipment and motors severely aged; variable speed drives not installed; lighting was old and inefficient
Paladin Actions & Recommendations
Utilized a Solution Partner to complete energy usage audits to identify energy usage reduction opportunities; determine electrical load that could be interrupted; reengineer production line power and lighting equipment.
Utilized a Solution Partner that provided an e-commerce approach to obtain competitive natural gas pricing; negotiated final contract terms; assisted in implementation of new supplier and related processes.
- Energy usage reduction savings of approximately 11%
- Investment payback of less than 2 years
- Natural gas delivery costs reduced 70%