Industrial Energy Consumption

There is always a lingering sensation of pride whenever the term “developed” is applied to a noun. Developed nation. Develop community. Developed technology. It is evident seeing how industries are expanding on size and reach. It is a given since they are the main cogs for nation economical gear. Developed industries are benchmarks for success.

  However, we pay the price development in form of resources consumption currency. In 2019, Malaysian energy consumption per capita was 2.8 tonne of oil equivalent (toe). It is much higher than any neighbouring countries like Singapore, Indonesia, or Thailand. In simpler context, that amount is equivalent to electricity needs of 10,746 residential home for one hour.

It is no surprise that industrial sector is the largest consumer of electricity, taking 40% of electricity generated by Tenaga Nasional Berhad (TNB). The energy demand is huge especially from energy-intensive manufacturing. What makes it worse, this situation comes in hideous form, lurking in shape of energy inefficiency. The higher the rate of energy inefficiency, the more severe damages it will bring towards industry itself. Overtime, cracks will widen from within and break the industry apart.       

Following are implications of inefficient energy consumption. If one takes precaution against these implications, the impacts could be mitigated severely to avoid disastrous outcome.

  1. Implication on worker level

Human resource is a vital component for any industry especially for those with factories or manufacturing plants. These workers are receiving direct impact to any changes concerning machinery and equipment. In the event where machinery and equipment are not working efficiently, workers need to overcompensate given that production output target could never be decreased as to not tamper with projected revenue. This overcompensation may come in form of unplanned production down time, overtime, additional assignment outside job description or improper assignment completion as to chase for output.

These will then reduce workers’ morale and create stress induced work environment. Consequently, it will contribute towards mental fatigue. Workers attitude and behaviour will then change to the worse. In addition, it puts workers health at risk as well. Mental fatigue could cause drowsiness and headache. These expose workers to work related injury since they unable to concentrate properly especially during operating machine or equipment.             

  1. Implication on asset level

Apart from impact towards workers, inefficient energy consumption affects company asset too such as equipment, machinery, or building. Asset depreciates with time. But inefficient energy consumption will hasten wear-and-tear thus shortening its initial life span. With that, cost of maintenance will increase more than what has been projected years prior. This happened when production line experiencing unplanned down time. Obviously, it will then hamper rate of production output causing delay and other additional cost related. Worst case scenario, asset needs to be replaced with new one causing added CAPEX and decreases profit margin even more.      

  1. Implication on company level

Upon direct impact towards workers and asset, it will then move to damage company and its brand. Given that workers morale is low, production output rate is now jeopardized. When production capacity is not solid, there are chances where one could not fulfil purchase order on time. This will lead to dissatisfaction from existing client and eventually losing them to competitor. Given that earlier cost to maintain asset is now increasing, there is not much leeway to increase marketing budget, resulting in smaller chances to win prospect. Moreover, it will also deter company effort for brand awareness campaign since budget had gone much to operation maintenance.

  1. Implication on global level       

On a global scale, inefficient energy consumption causes higher Greenhouse Gas (GHG) emission and larger carbon footprint. This contributes towards ozone thinning effect and greenhouse effect. In simpler term, pollution. It risks not only those that works in that factory but to residentials nearby. Moreover, it will cause detrimental effect towards the environment.

In a nutshell, there are alarming reasons to why you must pay close attention towards energy consumption behaviour at your workplace. Efficient energy consumption will not just help your bottom line but provides safer and more conducive work environment to your company.

This is possible with the right consultation expert – SYREFL.

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