Life Isn’t Fair (especially if you are a manufacturer)
The manufacturing industry has been stifled with over regulation and excessive costs. Many of the large manufacturers have found ways to decrease costs or absorb costs to stay afloat. However, the increased regulatory climate has made it extremely difficult for the smaller companies to survive. Let’s take a look at why…
The cost of federal regulations falls disproportionately on manufacturers, especially the smaller guys. Manufacturers pay $19,564 per employee per year just to comply with federal regulations. That’s nearly double what the average U.S. firm pays at $9,991. Environmental regulations account for 90 percent of the difference in compliance costs between manufacturers and the average firm. Small manufacturers with fewer than 50 employees really pay the price, they spend 2.5 times the amount of large manufacturers to comply.
Manufacturing executives have had to become increasingly savvy just to keep their doors open. With their industry costs exceeding and sometimes doubling what other companies have to pay, sustainability-based solutions have been at the forefront of investigation. Manufacturers account for 30% of the U.S. total energy consumption. Many executive have found that reducing energy consumption has allowed them to compete even thrive in today’s climate.
A Case Study to Consider
Kentucky Steel Center replaced a legacy light system consisting of (100) 400 watt Metal Halide and (60) 1000 watt Metal Halide fixtures with (90) Orion T5 10-Lamp high bay fixtures. The annual savings was $31,115 with 259,290 kWh displaced. On the feel good front, this impact on the environment equated to a reduction of 167.6 tons/year of CO2, it saved 47.6 acres of trees planted yearly and a light level improvement of 267%
In a nutshell, life isn’t fair for manufacturers. However, the ones that come out on top don’t care. They realize life isn’t fair and they simply learn how to even the playing field.
Source: National Association of Manufacturers and Contemporary Energy Solutions Case Study