Industry, regardless of its role in the American economy is suffering from the dramatic leap in energy costs. Unfortunately many of us do not realize how much of our profits are being devoured by these ever increasing costs. The misguided philosophy is that energy costs are absorbed in the maintenance budget. The maintenance budget generally is not broken down therefore the true operating costs of the energy used can not be determined. Some companies are still operating on the concept of cheap energy. If energy costs were broken down into a separate budget it will soon become apparent that the energy costs are becoming more and more a factor in evaluating the true cost of producing a product. The companies that have recognized this condition are finding it extremely difficult to absorb these costs and are adjusting their product pricing accordingly. Energy costs are spiraling upward and companies must analyze the equipment consuming this precious commodity. The boiler room is the greatest consumer of energy. If a company is going to pursue the path of energy conservation, the boiler room will be the focal point because “Energy Conservation Begins In The Boiler Room”.
Paper published with permission.
