Where Energy Prices Are Going and What That Means for Your Business
The world’s energy climate looks less stable now than it did a decade ago, and high energy consumption businesses need to know the outlook in order to prepare for meeting the challenges of tomorrow. Predictions are difficult to make, but there are major trends that can reliably be predicted.
The Prices are Going Up
The price of electricity has been increasing reliably for years. In 2014, it is projected to go up by 2%, higher than the rate of inflation. More troubling is that this isn’t a short term price increase. The US Department of Energy predicts that electricity prices in the industrial sector will increase by 28% between 2013 and 2040, and in commercial sector by 83%. Businesses have to find another way to make up for these coming increases in overheads.
Green Energy is Here to Stay
For the first time, green technology is finally affordable enough for the needs of small and mid-size businesses. From LED lighting to efficient commercial appliances, these technologies will give businesses a chance to remain competitive as energy prices increase.
Consumers Care about Energy Usage
Becoming more efficient is not just a matter of improving the bottom line. New, climate-conscious customers wishing to lower their impact on the planet have begun to evaluate companies and make consumer choices based on the “greenness” of companies. It’s important for businesses to not only meet these expectations, but to also revamp their brand accordingly to showcase these changes.
So, while no one knows exactly where energy costs will be in 6 months, the long-term trends do provide business owners with actionable steps to ensure their companies remain competitive. Paying attention to efficiency in the next decades will be crucial to which companies sink or swim in the global climate.