Cutting Costs and Helping the Environment: How Food Processing Plants can Benefit

Written by admin on . Posted in Todd Construction - Food Processing Construction

Technology that focuses on bringing about efficient energy use is in high demand in many sectors. However, there are industries that have yet to explore the overall benefits. Because of this, the environment as well as operation costs suffer.

A highly competitive industry, food processing is meticulous in regard to production and output. This causes many organizations in the field to fear adopting new technologies, as the slightest ineffectiveness in operations can alter the finished product and bring about loss. Although, hesitancy due to possible liability is understandable, there’s a no-risk, cost-effective solution.

Just as consumers look toward replacing old appliances with energy-efficient ones, so too can industry; and just like consumer adoption of these technologies has proven, they too can do so without sacrificing performance. According to studies by the Department of Energy, the food industry consumes more than 70% the nations energy resources. This is because many have yet to purchase modern equipment. The thing is, that contrary to popular belief, the adoption of energy-efficient motors to facilitate food processing actually reduces production costs, leaving output unaffected.

Sure, the initial cost may seem significant at the beginning, but upon understanding monetary differences involved in operating old and new equipment, it becomes clear that overtime cost reductions raise profit margins. For instance, studies show that industrial plants can reduce their electrical costs by up to 15% with energy-efficient motors. This may seem small but when looking at yearly projections, retained profit is quite significant. Even in a small industry, that has a $10,000 a month electric bill, yearly saving is about $36,000; and for a larger company, paying $20,000 a month for electricity, the saving is about $72,000 a year. That is definitely not just pocket change!

This also means that in an organization that operates in excess of 4000 hours a year, the cost of installing more efficient systems can pay for itself in as little as two years; making the savings in years after pure profit! Another thing great about energy-efficient motors is that they produce the same level of power and don’t cost more to repair or maintain. This assures there will be no added expense or change in production.

Reducing lifetime operating costs by about 1/4th the purchase price or greater, a business can’t go wrong with adopting energy-efficient technologies. In fact, the saving found in tax deductions can also reduce the cost of initial purchase. Like many other states, Wisconsin offers an investment credit as well as a 10% or greater credit for modernization. These tax reductions alone often cover most of the cost involved in energy-reducing efforts. Think about it, the environment benefits and so does net worth!

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