Toyoda | Power Consumption

(7) POWER CONSUMPTION

Gaining an energy cost advantage in the manufacturing industry

An unavoidable cost that all shop owners have is their machine’s annual power consumption. An embedded expense to manufacturing, it is one that silently plays a hefty role in determining ROI, particularly in an industry that accounts for more than one third of all energy consumed in the United States. With drastic improvements to machining efficiency in the past several decades, shop owners need to be aware of their machines ability to comparatively do the same work, while using less energy. From machine to machine, required kVa power consumption input can make the difference of thousands of dollars per year. Gaining an energy cost advantage in operational CNC equipment can help secure competitiveness (see Toyoda’s attached energy calculator).

Just as impactful as the type of machine is a business’ home state. Warmer states typically call for higher summer rates due to energy cooling demands. Depending on the state, shop owners can also see a difference of upwards of .11 cents per kWh – quite a difference for an industry consuming just over 21,000 trillion Btu annually. With an average use of 95.1 kilowatt-hours of electricity and 536,500 Btu of natural gas per square foot annually, manufacturing facilities are actively targeting potential machining energy savings that will increase their overall ROI. See how your state compares. See questions highlighted in ROI JUSTIFICATION GUIDE: PART 6.

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Read the next section below: Depreciation