Finding balance in high-output manufacturing with low energy

Finding balance in high-output manufacturing with low energy

As manufacturers face rising global demands for efficiency and environmental responsibility, they encounter a dual challenge: how to boost output while minimizing energy consumption.

By Jayme Leonard January 24, 2025

 

Learning Objectives

• Understand the role of energy efficiency in manufacturing. Identify key areas of energy consumption in manufacturing facilities, with a focus on air compression systems and recognize the environmental and financial impacts of reducing energy use.
• Explore advanced technologies for sustainable manufacturing. Analyze how automation, data analytics and IoT-enabled smart factories contribute to energy efficiency and sustainable productivity within manufacturing settings.
• Examine regulatory and financial incentives for energy efficiency. Discuss government regulations, incentives and common barriers to implementing energy-efficient practices and understand how these influence sustainable practices in the manufacturing industry.

Energy insights

• Meeting energy goals requires integrating advanced technologies and sustainable practices that not only streamline operations but also contribute to long-term savings and compliance with climate-focused regulations.
• Learn strategies to balance high-output manufacturing with low energy consumption for overall sustainable productivity.

In manufacturing, companies are under increasing pressure to enhance efficiency and productivity while simultaneously minimizing energy consumption. This dual challenge is driven by the need to stay competitive in a global market and comply with stringent environmental regulations. As the world grapples with climate change, energy conservation has become a critical component of both environmental and economic sustainability.

Global energy and climate initiatives, such as the Paris Agreement, are pushing industries to reduce their carbon footprints and adopt more sustainable practices. For manufacturers, this means finding ways to maximize output while reducing energy usage. This is not only important for compliance but also for gaining a competitive advantage in an increasingly eco-conscious market.

One of the most significant energy challenges in manufacturing is managing energy-intensive processes like air compression, which powers pneumatic tools, conveyors and assembly equipment. These systems often account for a substantial portion of a facility’s energy expenses, particularly if they are not optimized for efficiency.

To address these challenges, manufacturers are turning to advanced technologies, process innovations and renewable energy sources. By embracing these strategies, they can achieve sustainable productivity that benefits both their business and the environment.

 

Figure 1: Atlas Copco’s air quality monitor provides real-time monitoring of air purity, ensuring compliance with quality standards and enhancing operational efficiency in compressed air systems. Courtesy: Atlas Copco Compressors

Understanding energy consumption in manufacturing

To effectively minimize energy usage, it’s essential to first understand where energy is being consumed across the manufacturing industry. In manufacturing facilities, energy is typically directed toward several key areas, including machine operations, lighting, climate control and compressed air systems. Among these, air compression alone can represent 10% to 30% of a facility’s energy costs, depending on the sector and scale of production.

According to the U.S. Energy Information Administration (EIA), the manufacturing sector consumed approximately 19,436 trillion British thermal units (Btu) of energy in 2018. This consumption is distributed across various subsectors, with chemicals, petroleum and coal products, paper and primary metals being the top energy consumers On average, manufacturing facilities use 95.1 kilowatt-hours of electricity and 536,500 Btu of natural gas per square foot each year.

High energy consumption in manufacturing not only leads to increased operational costs but also has significant environmental impacts. The manufacturing industry accounts for about 20% of global greenhouse gas emissions. Reducing energy consumption is critical for both financial savings and environmental sustainability. By implementing energy-efficient practices and technologies, manufacturers can lower their energy bills and reduce their carbon footprint, contributing to global efforts to combat climate change.

By identifying these high-energy areas and deploying targeted solutions, manufacturers can establish more efficient workflows and reduce unnecessary power consumption.

 

Figure 2: Atlas Copco’s energy recovery systems capture heat generated by compressors and repurpose it for facility heating, like showers or radiators, reducing both energy costs and environmental impact. Courtesy: Atlas Copco Compressors

 

Advanced manufacturing technologies: pathways to efficiency

Technological advancements have enabled manufacturers to boost productivity while reducing energy demands. By combining automation, data analytics and smart systems, facilities are now able to achieve precise control over energy consumption, tailoring use to real-time production needs. Key technologies in this domain include:

 

Automation and robotics

Modern automated systems and robotics have transformed assembly lines, offering faster production with greater accuracy. These systems can operate only when needed, conserving energy during idle periods.

 

For example, integrating compressors with automation allows them to function only when tools are active, reducing unnecessary energy use. Automation also helps reduce human error, streamlining production and conserving power by minimizing unnecessary processes.

 

Data analytics and machine learning

Data-driven insights are invaluable in detecting inefficiencies, predicting equipment failures and optimizing schedules. In compressed air systems, for example, data analytics can highlight periods of peak usage, detect minor leaks and identify points where system pressure may be unnecessarily high. These insights allow facilities to adjust, lower pressure or schedule maintenance before energy losses accumulate, leading to cost savings and improved compressor longevity.

 

Additive manufacturing

In sectors that have adopted 3D printing and other additive manufacturing technologies, there is a noticeable reduction in both energy and material waste. By creating parts layer by layer, these methods eliminate the need for complex tooling and excess material, which traditionally require significant energy for processing and handling. Additionally, additive manufacturing often reduces reliance on air-powered equipment, contributing to lower overall energy consumption.

 

IoT and smart factories

Internet of things (IoT)-enabled factories use connected devices, sensors and smart equipment to monitor energy use in real-time. Air compressors equipped with IoT sensors can monitor their own performance, adapting pressure levels based on demand fluctuations. This dynamic control results in significant energy savings, especially during periods of low activity. Moreover, IoT data can be aggregated and analyzed to fine-tune equipment settings and identify further optimization opportunities across the facility.

 

By leveraging these advanced manufacturing technologies, companies can significantly enhance their energy efficiency while maintaining high levels of productivity. These innovations not only help in reducing operational costs but also contribute to a more sustainable manufacturing process.

 

Figure 3: Atlas Copco’s GA 450 FD 2400 VSD+ Smart AIR solution combines high-efficiency compressors with intelligent control systems, optimizing energy use and reducing operational costs for large industrial facilities. Courtesy: Atlas Copco Compressors

 

Efficient production processes

A well-designed workflow is essential for achieving sustainable productivity. By examining and rethinking how processes are structured, manufacturers can find multiple points of improvement that reduce energy use while maintaining output levels.

Lean manufacturing focuses on waste reduction, aiming to cut out unnecessary steps and resources, including energy. In lean environments, equipment such as air compressors are programmed to operate only when required, reducing energy usage during inactive periods. By setting parameters around operational needs, lean manufacturing eliminates unnecessary energy consumption.

Air compressors and other heavy equipment generate substantial heat, most of which goes to waste. By capturing and redirecting this heat, facilities can warm office spaces, pre-heat water or use it for other on-site applications. Heat recovery is particularly beneficial in colder climates, where offsetting traditional heating costs can make a notable difference in energy costs. Manufacturers can install heat exchangers to funnel compressor-generated heat into facility-wide heating systems, creating an efficient loop that repurposes waste energy

Continuous production processes generally consume less energy than batch processes, as they reduce the need for frequent start-ups and shutdowns. For air compressors, this approach means maintaining a steady, lower-pressure output rather than continually ramping up and down.

 

By implementing these efficient processes and redesigning workflows, manufacturers can significantly reduce energy consumption while maintaining high levels of productivity. These strategies not only help in lowering operational costs but also contribute to a more sustainable manufacturing process.

 

Renewable and alternative energy sources

Renewable energy adoption is a powerful strategy in the quest to reduce energy costs and environmental impact. By harnessing solar, wind or geothermal power, manufacturers can power their facilities and processes sustainably.

Solar and wind energy

Facilities equipped with solar panels or wind turbines can offset energy used for lighting, climate control and even air compressors. In this setup, smart control systems can prioritize renewable energy sources, switching to grid power only when renewable generation is insufficient. For example, a study by the National Renewable Energy Laboratory highlights how advanced manufacturing technologies can integrate renewable energy to power processes, thereby reducing reliance on traditional power sources.

Biomass and geothermal energy

Biomass and geothermal energy are also viable options for manufacturing facilities. Biomass can be particularly useful for energy-intensive industries that require high-temperature heat, such as the chemical and metal sectors. Geothermal energy, while less common, provides a stable and continuous energy source that can be used for both heating and electricity generation.

 

Benefits of renewable energy integration

Integrating renewable energy sources into manufacturing processes offers several benefits:

Cost savings: Reducing reliance on traditional energy sources can lead to significant cost savings over time.

Environmental impact: Lowering greenhouse gas emissions contributes to global efforts to combat climate change.

Energy security: Diversifying energy sources enhances energy security and reduces vulnerability to energy price fluctuations.

 

Smart equipment and high-efficiency machinery

The development of smart equipment and high-efficiency machinery marks a significant shift in the manufacturing industry, enabling companies to reduce energy consumption while maintaining or even increasing productivity. These innovations are driven by advancements in technology, including the industrial IoT (IIoT), artificial intelligence (AI) and robotics.

Industrial internet of things

The IIoT involves a network of interconnected machinery, tools and sensors that communicate with each other and the cloud to collect and share data. This connectivity allows for real-time monitoring and management of equipment, leading to improved efficiency and reduced energy consumption. For example, IIoT-enabled air compressors can adjust their operation based on real-time demand, minimizing energy waste during periods of low activity.

AI and machine learning

AI and machine learning algorithms analyze data collected from IIoT devices to optimize production processes and predict equipment maintenance needs. This predictive maintenance approach helps prevent unexpected breakdowns and reduces downtime, ensuring that machinery operates at peak efficiency. AI can also identify patterns and trends in energy usage, allowing manufacturers to implement energy-saving measures more effectively.

Robotics and automation

Robotic process automation has revolutionized manufacturing by taking on repetitive and dangerous tasks, improving product quality and reducing defects. Robots can perform tasks faster and with greater precision than human workers, leading to increased productivity and lower energy consumption.

 

For instance, robots integrated with IIoT sensors can optimize their operations based on real-time data, further enhancing energy efficiency.

 

By adopting smart equipment and high-efficiency machinery, manufacturers can significantly reduce their energy consumption and operational costs. These technologies not only enhance productivity but also contribute to a more sustainable manufacturing process.

 

Energy regulations and incentives

Government regulations and incentives play a crucial role in promoting energy efficiency in the manufacturing sector. These are designed to incentivize companies to adopt energy-efficient technologies and practices, thereby reducing their environmental impact and operational costs.

Environmental regulations set standards that manufacturers must meet to reduce their energy consumption and greenhouse gas emissions. These regulations often include mandatory energy audits, efficiency targets and reporting requirements.

For example, the European Union’s Energy Efficiency Directive requires member states to achieve specific energy savings targets through various measures, including improving industrial energy efficiency. Similarly, the U.S. Department of Energy has established energy efficiency standards for industrial equipment, such as air compressors, to ensure they operate more efficiently.

To support compliance with these regulations, governments offer various incentives and subsidies. These can include tax credits, grants and low-interest loans for companies that invest in energy-efficient technologies.

For instance, the U.S. federal government provides tax incentives for businesses that implement energy-saving measures, such as upgrading to high-efficiency motors and installing renewable energy systems.

The benefits of these regulatory measures and incentives are manifold:

Cost savings: Companies can reduce their energy bills and operational costs by adopting energy-efficient technologies.

Environmental impact: Lower energy consumption leads to reduced greenhouse gas emissions, contributing to global climate goals.

Competitive advantage: Companies that invest in energy efficiency can gain a competitive edge by reducing costs and enhancing their sustainability profile.

Innovation: Regulations and incentives drive innovation in energy-efficient technologies and practices, fostering a culture of continuous improvement.

By leveraging government regulations and incentives, manufacturers can enhance their energy efficiency, reduce costs and contribute to a more sustainable future.

 

Figure 4: Atlas Copco’s ZR 315 VSD compressor, combined with the Optimizer four.0, delivers energy-efficient, oil-free air with smart monitoring capabilities, enabling optimized performance and reduced energy consumption in industrial applications. Courtesy: Atlas Copco Compressors

 

Challenges in implementing energy efficiency regulations

Implementing energy efficiency regulations in the manufacturing sector presents several challenges. These obstacles can hinder the adoption of energy-efficient practices and technologies, despite the potential benefits. Here are some of the key challenges:

Financial barriers

One of the most significant challenges is the high upfront cost associated with energy-efficient technologies. Many manufacturers are hesitant to invest in new equipment or upgrade existing systems due to the substantial initial cost. Although these investments often lead to long-term savings, the immediate financial burden can be a deterrent, especially for small and medium-sized companies.

Lack of awareness and information

Another major barrier is the lack of awareness and information about the benefits of energy efficiency and the available technologies. This knowledge gap can prevent companies from taking the necessary steps to improve their energy performance.

Technical challenges

Implementing energy efficiency measures often requires specialized knowledge and technical expertise. Manufacturers may lack the in-house capabilities to assess their energy use and identify opportunities for improvement. Additionally, integrating new technologies into existing systems can be complex and may require significant modifications to current processes.

Market and economic barriers

Market conditions and economic factors can also pose challenges. For example, fluctuating energy prices can impact the perceived value of energy efficiency investments. When energy prices are low, the financial incentive to reduce energy consumption diminishes. Additionally, the availability of financing options for energy efficiency projects can be limited, making it difficult for companies to secure the necessary funds.

Balancing high productivity with low energy use is a critical challenge in modern manufacturing. As industries strive to meet increasing production demands while minimizing their environmental impact, the adoption of energy-efficient technologies and practices becomes essential. This balance not only helps companies comply with environmental regulations but also enhances their competitive edge in a market that increasingly values sustainability.

While the initial investment in efficient technologies and processes can be substantial, the long-term benefits far outweigh the costs. Financially, companies can achieve significant savings through reduced energy consumption and lower operational costs. Environmentally, these practices contribute to the reduction of greenhouse gas emissions and the conservation of natural resources, aligning with global climate initiatives. Competitively, manufacturers that prioritize energy efficiency can improve their market position by demonstrating a commitment to sustainability, attracting eco-conscious consumers and partners.

The journey toward energy-efficient manufacturing is not without its challenges, but the rewards — financial, environmental and competitive — make it a necessary and worthwhile endeavor. By embracing advanced technologies, optimizing production processes and fostering a culture of continuous improvement, manufacturers can achieve sustainable productivity that benefits both the business and the planet.

Jayme Leonard is a Digital Marketing Specialist at Atlas Copco Compressors.

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.

Jayme Leonard

Author Bio: Jayme Leonard is a Digital Marketing Specialist at Atlas Copco Compressors.

How to look at energy efficiency through nontraditional demand-side management

How to look at energy efficiency through nontraditional demand-side management

Industries are shifting to DSM, using strategies like smart energy storage systems and solar installations for improved energy efficiency

By Dr. Michael Wrinch February 2, 2024

Learning Objectives

• Explore the integration of smart meters, communication networks and data management systems for comprehensive energy monitoring.
• Gain an understanding of the challenges associated with nontraditional demand-side management (DSM).
• Develop a new perspective on stranded assets, such as parking lots and rooftops.

Demand-side management (DSM) insights

• This article explores examples of nontraditional demand-side management (DSM) techniques, comparing them to traditional methods and highlighting the associated risks and benefits.
• There are four key areas in which the energy market has changed, giving the consumer more power over the use of electricity.

 

In recent times, with the rise of artificial intelligence, advanced communication, storage technology and the commercialization of solar technology, nontraditional demand-side management (DSM) options have emerged. These innovative techniques can produce significant results in distinct ways.

The energy markets have changed in four ways over the years, with smart metering enabling the billing of total energy, time of use and peak power.

Figure 1: Example of a stranded asset parking lot that was converted into a solar energy facility in Shanghai. Courtesy: Hedgehog Technologies

1. Transforming stranded assets into renewable energy generators

Stranded assets such as parking lots and rooftops can be converted into valuable energy-producing areas by installing solar photovoltaic panels. These solar panels have the capacity to generate megawatts of electricity on-site, reducing the need to purchase energy from the grid — particularly during peak daylight hours when energy prices may be higher. Recently, Six Flags Magic Mountain initiated a groundbreaking 12.37-megawatt solar carport, described as California’s largest solar energy project.

2. Leveraging energy storage to reduce peak demand and charges

The challenge with solar is that it’s not always sunny and the energy may not be needed when solar production is at its highest. This lack of dispatchability in solar production can be addressed by coupling it with energy storage systems, such as batteries or thermal storage. These systems can be charged during periods of low energy demand and discharged during peak demand periods This helps shave off the peaks of energy demand, optimizing load levels to achieve a higher load factor (the load factor is calculated as peak power divided by average power), which can result in lower utility bills. Many utilities charge higher rates during peak times for both peak power and energy.

By reducing peak demand, facilities can avoid or minimize demand charges, which are calculated based on the highest level of power drawn (typically over a 15-minute rolling window) during a billing period. Energy storage can further enhance the reliability of the power supply and provide backup power during outages, which is critical for many industrial processes or to prevent brownouts.

Figure 2: Example of a stranded asset parking lot that was converted into a solar energy facility in Shanghai. Courtesy: Hedgehog Technologies

3. Participating in demand-response programs

Nontraditional DSM often involves integration with smart grids, which can provide real-time data on energy consumption and enable more sophisticated energy management strategies. Facilities can participate in demand-response programs, wherein they agree to reduce their energy consumption or deploy battery-stored solar energy during periods of high demand on the grid in exchange for financial incentives.

This may involve automated systems that respond to signals from the utility to temporarily limit energy consumption by dispatching batteries, using stored thermal energy on-site, dimming lights, adjusting heating, ventilation and air conditioning settings or temporarily shutting down nonessential equipment.

 

Figure 3: Graphic recreation of a stranded asset being repurposed for solar energy generation. Courtesy: Hedgehog Technologies

4. Optimizing energy use through monitoring, analytics and time-based dispatching

Energy monitoring involves the full integration of smart meters, communication networks and data management systems. For example, in industries attempting to electrify their fleets with forklifts, cars and trucks, the demand can potentially exceed the main service capacity. Energy monitoring and control can monitor the services on the main feed and can dispatch or curtail charging infrastructure based on the loading of these lines, thereby enabling more efficient use of existing assets.

Additional considerations for DSM

While nontraditional DSM strategies can yield significant benefits, there are some pitfalls to consider before proceeding. The first challenge lies in the high initial investment costs associated with many of these technologies. Although this aspect can be stifling, it is important to note that there are continually new incentives, rebates and financing options that can help offset the initial costs. Additionally, exploring options such as energy service companies that offer performance contracting and front-load the costs can be a viable approach.

The second challenge concerns the complexity of integrations. Nontraditional DSM methods are often more intricate than jobs such as a simple lighting retrofit. They demand thorough planning and consideration of the variables. For instance, solar installations on rooftops or parking lots may need a seismic and geotechnical assessment to ensure the surface can support the additional weight.

The third challenge is investing in the wrong technology or opting for a technology that may become obsolete and is costly to upgrade. While all technology eventually becomes obsolete, careful consideration is essential to ensure it can be managed in a manner that won’t require a complete overhaul shortly after the project is complete.

Figure 4: Photo of Hedgehog Technologies' electrical engineer Aileen Maynard standing near a large solar installation. Courtesy: Hedgehog Technologies

Nontraditional DSM is the future

Overall, nontraditional DSM techniques hold the promise of achieving energy reduction and efficiency, resulting in cost savings on production and a reduced carbon footprint. Regardless of the goal, these options are going to play an increasingly important role in addressing the energy efficiency and conservation needs of a plant.

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.

Dr. Michael Wrinch

Author Bio: Dr. Michael Wrinch, P.Eng., is the president of Hedgehog Technologies, an electrical engineering consulting firm that specializes in risk management. He is certified through TÜV Rheinland, an international gold standard in safety.

Source: 

https://www.plantengineering.com/articles/how-to-look-at-energy-efficiency-through-nontraditional-demand-side-management/

Sustainability insights: Five manufacturing trends to accelerate sustainability progress

Five manufacturing trends to accelerate sustainability progress

More than ever, manufacturing companies are forced to consider the impact of their carbon footprint. Five trends for companies to improve their sustainability efforts are highlighted.

By Dave Duncan June 25, 2024

Learning Objectives:

• Learn how Corporate Sustainability Reporting Directive (CSRD) compliance will set new expectations for manufacturing companies to become more sustainable.
• Understand how manufacturers can use modular design and product circularity to decarbonize product offerings.
• Learn how digital transformation helps support manufacturers in capitalizing on sustainability and profitability.

Sustainability insights:

• The Corporate Sustainability Reporting Directive (CSRD) will significantly impact manufacturers operating in the EU, pushing over 50,000 companies to comply with stringent emissions and reporting standards starting in 2024.
• Advanced digital technologies like AI, IoT, and PLM are crucial for manufacturers aiming to meet sustainability goals, enabling them to optimize designs, reduce emissions, and enhance efficiency, potentially capturing billions in annual sales by 2030.

Recent years have brought significant challenges to the manufacturing sector in the United States. Supply chain instability and ongoing workforce shortages have created a landscape of uncertainty. Manufacturers must tackle these challenges with an added layer of preparation for The Corporate Sustainability Reporting Directive (CSRD). CSRD is new European Commission legislation aimed at driving more sustainable business practices at companies that operate in and export to the EU. While this legislation originates in the EU, any company that intends to exceed €150 million annual revenue in the EU needs to be compliant. Starting in 2024, more than 50,000 companies will need to comply with CSRD emissions reductions and reporting requirements.

Many companies have set ambitious decarbonization commitments. More than 6,000 have signed up through the Science Based Targets initiative, 66% of Fortune 500 companies have pledged net zero, and net zero targets cover 65% of the annual revenue of the world’s largest 2,000 companies. However, analysis has shown these commitments haven’t been translated into action. Net Zero Tracker found only 4% of company net-zero commitments are accompanied by a clear plan for how to achieve that goal.

Among discrete manufacturers, the opportunity to decarbonize supply chains and product offerings is hitting an inflection point. Over the next year, we expect CSRD to act as a forcing function that changes the way they approach sustainability, which will kick off a wave of aggressive decarbonization.

This is possible due to the rapid advancement of digital technology over the past few years. Technology such as artificial intelligence (AI), Internet of Things (IoT) and product lifecycle management (PLM) will play a leading role in turning discrete manufacturers’ commitments into reality. Those who prioritize digital transformation and product innovation now will be able to capture potentially of billions in annual sales by 2030.

This shift is expected to manifest in five ways in the near future.

1. Sustainability and profitability working together

Sustainability has long been thought of as a cost center rather than a value center. Research conducted by Capgemini in 2022 found 53% of respondents believed  the cost of pursuing sustainability initiatives outweighs the potential benefit. Contrary to this sentiment, the same report found organizations prioritizing sustainability were outperforming organizations that weren’t.

While it’s true there can be upfront costs associated with implementing sustainable practices, the long-term benefits often outweigh these initial investments. Sustainability can drive efficiency and cost savings, innovation, risk mitigation and enhanced competitiveness, making it an integral aspect of a manufacturer’s overall strategy rather than another cost center.

In fact, as McKinsey noted, “Companies that reduce costs and emissions simultaneously can gain market share and finance further decarbonization efforts through the additional cash generated. Leading companies typically go after the first 20 to 40% of decarbonization while also reducing costs, leading to an improvement in EBITDA.”

This idea should take root as manufacturers realize how sustainability and profitability can work together. Thanks to the acceleration of digital transformation, discrete manufacturers are at a stage of digital maturity where they can leverage the tools that align their financial goals with the decarbonization of their product offerings.

One example of this is generative design, which uses generative AI to create optimal designs from a set of requirements and constraints. Users define the design problem, and the engine determines an array of optimal solutions no human could. It can achieve what would take designers weeks or months to do by themselves in a fraction of the time, which opens the door for previously unfeasible designs.

Some manufacturers are leading by example, leveraging generative design and 3D simulation within their computer-aided design (CAD) software to create and test parts that use 10 to 15% less material than conventionally designed parts.

Among discrete manufacturers, the opportunity to decarbonize supply chains and product offerings is hitting an inflection point.

Among discrete manufacturers, the opportunity to decarbonize supply chains and product offerings is hitting an inflection point. Courtesy: PTC

2. Using sustainability as a core product design factor

The decisions made during the product development phase are estimated to determine over 80% of all product-related environmental impacts. Material and component supplier selections are often a top two footprint contributor. For energy-intensive products like cars, customer use can be an even bigger contributor.

The bottom line is the decisions that contribute to Scope 3 emissions offer the greatest opportunity to make significant reductions. In 2024, we expect to see manufacturers start embedding sustainability criteria into the fabric of design decisions.

Typical design criteria includes cost, performance, risk, time-to market, durability, reliability, manufacturability and so on. With CSRD, factors such as the footprint of materials, the footprint and decarbonization trajectory of suppliers, the ability to reuse, remanufacture and recycle components and energy efficiency will be added to the mix. The decarbonization trajectory of suppliers is especially important. This may result in situations where suppliers with more aggressive plans are selected over cleaner suppliers who have a less ambitious decarbonization ramp.

As manufacturers progress through the design phase, technology will be key to enable the rapid iterations in product design needed to meet CSRD-mandated reduction commitments. This looks like using CAD and PLM tools to assess the environmental impact of materials and suppliers, choose the right manufacturing process up front, lightweight designs, and run 3D simulation to verify and iterate on designs digitally, reducing physical prototyping. By using these tools to optimize designs and manufacturing processes early and often, manufacturers can innovate faster and reduce costs.

3. Using IoT to reduce factory emissions

While factory emissions only account for 1 to 10% of overall emissions, they represent a significant portion, or even the majority, of the operational Scope 1 and Scope 2 emissions that manufacturers can reduce, making them a priority in 2024. In the factory, the Internet of Things (IoT) plays an integral role in optimizing energy use, reducing waste, and improving overall equipment effectiveness (OEE). But many manufacturers remain hesitant about IoT adoption due to perceived challenges such as implementation costs, effort, and disruption.

CSRD should push manufacturers toward factory modernization. IoT will shift from a competitive advantage enjoyed by early adopters to a non-negotiable for any manufacturer that needs to reduce energy use and carbon emissions. Using IoT sensors to monitor emissions from manufacturing processes, manufacturers can accurately measure their carbon footprint and comply with regulations. They can also identify energy-intensive operations and implement optimization strategies to reduce overall energy usage by monitoring energy consumption in real-time. For example, one supplier of logistics and energy equipment used IoT-enabled energy management software to reduce energy consumption by 13%.

Beyond this, IoT also powers bottleneck analysis, which identifies top OEE-hindering constraint priorities on the factory site, allowing manufacturers to uncover opportunities to increase efficiency and reduce waste. Running this analysis early in the production cycle further reduces errors and defects, preventing waste and rework.

4. Increased investment in circularity and modular design

Circularity is a fundamental aspect of sustainability that emphasizes minimizing waste, promoting resource efficiency, and creating a closed-loop system in which materials are reused, refurbished, remanufactured and recycled. In 2024, we expect manufacturers to increasingly prioritize circularity, with modular design emerging as one of the most impactful long-term strategies to decarbonize product offerings.

Modular design involves creating products with interchangeable components that can be disassembled, reused, repaired, upgraded or recycled. Modularity increases product longevity and circularity as parts and components get reused and remanufactured, rather than sent to a landfill. Modularity also enables more efficient factory tooling and reduces the costs of market-demanded product variations. Technology will play a critical role in enabling modular design, as digital tools are needed to tame the downstream complexity that comes with modularity. This can look like equipping frontline workers with digital tools that provide 3D work instructions and filter instructions and parts lists to their serialized configurations.

5. Tipping point for product-service systems (PSS)

The adoption of product-service system (PSS) models has been ongoing for many years, but much like IoT, many manufacturers are hesitant about the risks and investment required. While it is a transformative change, moving to the more customer and service-centric PSS model comes with many advantages such as recurring revenue streams and enhanced customer relationships.

However, what may be most convincing to manufacturers is the extended producer responsibility (EPR) for high-value assets included in CSRD. EPR requires manufacturers to be responsible for the entire lifecycle of their products, meaning they need to find ways to reduce materials use, enhance product reusability, recyclability and improve waste management.

A product-service system incentivizes manufacturers to make products more modular and repairable, extend the life of products through service, and prioritize refurbishment, remanufacturing, and responsible end-of-life management. This alignment between product-service system models, circularity and predictable revenue, positions PSS as a key strategy for reaching the sustainability goals outlined in CSRD.

In 2024, there will be an opportune mix of government regulations, technology advancement and consumer pressure. Will this be the year those empty commitments turn into action? No guarantees, but for discrete manufacturers, the future looks bright for sustainability progress.

Sustainability insights

The Corporate Sustainability Reporting Directive (CSRD) will significantly impact manufacturers operating in the EU, pushing over 50,000 companies to comply with stringent emissions and reporting standards starting in 2024.

Advanced digital technologies like AI, IoT, and PLM are crucial for manufacturers aiming to meet sustainability goals, enabling them to optimize designs, reduce emissions, and enhance efficiency, potentially capturing billions in annual sales by 2030.

____________________________________________________________________________

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.

Dave Duncan

Author Bio: Dave Duncan is VP of Sustainability at PTC. He is responsible for developing the right sustainability capabilities and integrations in PTC’s product portfolio to help customers more sustainably design, manufacture, and service products to reduce their footprints. He is also responsible for reducing PTC’s corporate footprint and ensuring environmental improvements are aligned with financial goals. Prior to PTC, Dave held various product leadership roles at Servigistics, Kaidara, GE Healthcare, and JD Edwards. Dave holds a Bachelor of Science in Civil Engineering and Operations Research from Princeton University and received a Blended Professional Certificate: Chief Sustainability Officer from MIT.

Source: 

https://www.plantengineering.com/articles/five-manufacturing-trends-to-accelerate-sustainability-progress/

Want to save money? Watch your plant’s energy use

Want to save money? Watch your plant’s energy use

Smart machines, sensors and artificial intelligence tools work in concert for continuous monitoring to help save a plant energy.

By Scott Dowell January 27, 2025

Learning Objectives

• Learn how sensors, smart machines and other automation solutions can provide real-time insight and enable data-driven decisions to optimize production efficiencies.
• Discover how manufacturers can kickstart a sustainability program in a phased approach that minimizes risk and cost while speeding return on investment.
• Determine the information that is critical to building a sustainability program and the best ways to measure the impact from a financial perspective as well as an operational one.

Energy use insights

• Energy use can significantly impact an organization’s bottom line and maintain competitiveness.
• Sensors, smart machines and other automation solutions can improve energy efficiency.
• Energy efficiency and sustainability can often seem like “nice to haves” for plant managers and operators who are laser-focused on keeping lines running. But energy use can have a significant impact on an organization’s bottom line and be a competitive differentiator.

While manufacturers do a good job of capturing the tier-one and tier-two costs of embedded materials, components and even labor into their finished products, they often don’t capture – or know how to capture – energy cost as an ingredient. It is critical that manufacturers think of energy as an embedded cost in each unit of product produced.

The good news? Sensors, smart machines and other automation solutions can help improve energy efficiency and ensure that production lines are running sustainably and cost-effectively. These tools provide data to identify inefficiencies, allowing for adjustments to equipment and systems for optimal performance.

But where do manufacturers start, what data do they need to get these programs off the ground and how is return on investment (ROI) measured?

Three ways to kickstart good energy use practices

Sustainability can happen in baby steps. Manufacturers that know they aren’t operating as efficiently as they could be but aren’t looking to make a big sustainability investment right away (i.e. buying new equipment) can kickstart a sustainability focus with a series of smaller steps.

Step 1: Understand how power is purchased

How manufacturers purchase power from the utility can have a major impact on overall energy costs. Most industrial and commercial accounts are on a peak demand program with their utility provider. The catch is that if a manufacturer generates a surge in demand (a peak) that lasts for a certain duration of time, usually 15 or 30 minutes, then the actual current rate at that moment can be made retroactive for their entire monthly bill.

Understanding how you pay for power can significantly influence your bottom line. One customer in the Southeastern U.S. saw its rate jump from $0.07 per kilowatt hour (kWh) to $1.17 per kWh in one month because they didn’t have a firm grasp on how they purchased power from their utility.

It is critical for plant managers to understand how they are paying for power and review their bills to know when surges are being assessed and when changes to use patterns could avoid them.

Step 2: Implement tools to measure and track energy use

As the saying goes, “what cannot be measured cannot be fixed.” Many manufacturers simply think of energy use as a cost of doing business that they have little to no control over. Consequently, they don’t capture the cost of energy or use outdated methods, such as dividing total energy costs by the overall square footage of each department or building/area. Thus, it may look like the warehouse or storeroom pays that same internal cost rate as the heavy manufacturing areas. But this is not accurate.

The first step for many manufacturers is to implement a measurement system to create a baseline and understand which parts of the operations are consuming the most energy. Investing in sensors or systems that provide detailed visibility into the energy use by production line or even further by individual machines is critical. These tools can take snapshots of energy use or continuously monitor it to give operators or plant managers a sharper image of their overall energy consumption and the associated costs.

Not only will establishing a baseline help identify program outcomes, but many manufacturers looking to apply for government stimulus funding, tax credits and rebates will need a baseline in place and real-time data recording to be awarded funding and pass future audits.

 Figure 1: Automation solutions provide real time insight and enable data-driven decisions. Courtesy: Wesco

Step 3: Invest in new machines/platforms/infrastructure that are more energy efficient

Using older, less efficient equipment or running machines when they’re not needed, such as when demand is low, wastes energy and adds unnecessary wear and tear. This can negatively impact both operational costs and sustainability for manufacturers. Organizations that are further along in their sustainability journey or those that identify energy use as a primary cost driver may want to consider investing in more energy-efficient equipment or advanced platforms with artificial intelligence (AI) that can help optimize energy use.

AI and machine learning can then forecast energy needs and automate decision-making for better efficiency. Predictive maintenance also plays a crucial role in preventing energy waste.

For example, AI and sensors can monitor heating, ventilation and air conditioning equipment use to determine if it’s running unnecessarily, providing opportunities to save energy. Similarly, these tools can identify if a motor is running hot, which could indicate that a machine is either running inefficiently or in need of maintenance.

Securing ROI for energy efficiency

Sustainability and energy efficiency can be a competitive differentiator and can make a measurable impact on a manufacturer’s bottom line. With the right data and systems in place, manufacturers can make more strategic, data-driven decisions that can impact multiple areas of the operation — from quality to productivity, enhancing overall ROI.

To see how focusing on energy use can affect your business, consider two real-world examples:

Global steel manufacturer: During the production grade changes, there was a period where an unusable intermix was produced. The manufacturer had to cut the intermix using a plasma cutter, which used a tremendous amount of energy. Then the intermix material was remelted in the furnaces in small amounts. Operators were making these cuts on instinct and typically erred on the side of caution. By using AI to predict quality degradation from one product grade to the next, the manufacturer was able to make more accurate cuts, saving both material and energy. This process generated more than $8 million in savings per year.

Furniture manufacturer: One furniture manufacturer was unable to adequately compete because of its poor energy use. The company competed against overseas manufacturers who made a cheaper product. Although the manufacturer could switch production lines to make a similar product, their total energy costs were twice that of their competitors. This meant they couldn’t compete with the other manufacturers and had to exit the market.

While these examples may be outliers, they demonstrate the power – and financial benefits – of energy reduction measures. Even small, incremental improvements can add up over time. A commitment to sustainability can also open opportunities for government subsidies, tax breaks or other incentives that can help with ROI.

Making suitable choices toward energy efficiency

Optimizing operations, enhancing sustainability and implementing advanced tools can understandably seem overwhelming. It’s vital to bring in a trusted partner who understands the needs and goals of an organization.

Whether that’s simply understanding how energy consumption is impacting the bottom line or implementing advanced solutions that can continuously monitor energy use, a trusted partner can help ensure that sustainability efforts not only lead to greater production success but also greater ROI.

Scott Dowell is the senior vice president and general manager of U.S. industrial and commercial, industrial and government at Wesco.

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Scott Dowell

Author Bio: Scott Dowell is Senior Vice President and General Manager, Industrial and CIG, at Wesco. He has more than 25 years of experience and leads the strategy, execution and growth of Wesco’s industrial, automation, institutional and government end-user business throughout the United States.

https://www.plantengineering.com/articles/want-to-save-money-watch-your-plants-energy-use/