After last year's rocky recession, companies are looking for ways to bolster their earnings and reduce expenses. At the same time, environmental experts are urging companies to think about the economic impact of their actions and to address inefficient areas of their production. Although these two trends are seemingly in opposition, they can actually go hand in hand; and a growing number of companies are catching on.

According to professional services firm PricewaterhouseCoopers, nearly half of leading private companies are working on improving energy efficiency and waste reduction. More than a third expect to place a greater emphasis on sustainability in the near future.

Paul Stiller, principal engineer for Summit Energy, Louisville, Ky., says the issue of efficiency is a no-brainer.

“If you could easily decrease the cost of each bread loaf by x cents, would you? Of course you would; that's how you derive profit. Approach energy efficiency with that same frame of mind. Utilities can account for 5 to 50 percent of conversion cost, so it pays to improve efficiency.”

Calculate current efficiencies

When FullBloom Baking Co., Newark, Calif., moved to a new production space four years ago, it saw the move as an opportunity to revisit and revamp its efficiencies. Karen Trilevsky, FullBloom's founder, said the company had its eye on the issue from the beginning.

“In our old facility, our production was dictated by the space,” she explains. “In 2006, we purchased our current facility, which increased our size five-fold, and we had the opportunity to design our dream plant. Our production is much more efficient now as a result.”

Before starting to fix things, a bakery has to learn what actually is broken. Auditing a facility will reveal current production costs and efficiencies, and will enable companies to see the lay of the land.

“Inexpensive, portable meters, utility bills and equipment specifications can be used to construct a profile of energy usage,” Stiller says. “Review energy use and production data to establish the magnitude of fixed usage. Fixed usage results in a constant cost not correlated to production. It drives up unit cost, particularly at low production volume. A good target for fixed cost is less than 20 percent of total usage. Bakeries with storage freezers and refrigeration should target 35 percent or less.”

For companies unsure of how to conduct an audit, the U.S. Department of Energy offers assistance to qualified plants. Its Industrial Technologies Program provides options for small, medium and large industrial facilities. For companies going it alone, free self-assessment guides are available from the Industrial Assessment Center at Rutgers University and the Resource Efficiency Management program at Washington State University.

Companies looking to network with and learn from efficiency-minded operators can join the ENERGY STAR Food Processing Focus, a partnership between the EPA and food processing companies. Any food processor can get involved, and organizations currently participating include Cargill, ConAgra and General Mills, among others.

Tackle common plant systems

The Department of Energy estimates that common plant systems use about 80 percent of all industrial energy and that energy use in these systems can be reduced by about 10 to 20 percent. It advises that areas to address early on include motors and pumps, heating, cooling, ventilation and lighting.

Guttenplan's Frozen Dough, Middletown, N.J., implemented a Green Guidelines Program to address conservation in its plant. It addressed every aspect of operation, rigorously overhauling its production in order to reduce waste. Guttenplan's president, Abe Littenberg, suggests starting with the easy improvements and working up.

“First you pick the low-hanging fruit, “ he advises. “The energy companies will help you pay for more efficient lighting. That's easy, and has a fast return on your investment [which is] nil. Once you begin the process, others in your organization start making suggestions, and you go after more difficult and larger projects.”

Trilevsky says her company knew exactly where to focus its energies first.

“Labor, yield and throughput—these are our largest expenses, so it was likely the greatest savings would be found in these categories,” she explains. “Tunnel ovens and conveyors had a major positive impact.”

Analyze potential changes and costs

Some improvements will immediately garner noticeable differences, while others may take a while to appreciate. Even if changes are slow in appearing, companies should not assume their work has been for naught.

“Some results are immediate, such as control adjustments to ovens, boilers and compressors,” Stiller explains. “Awareness training and real-time usage displays have enabled employees to make a difference within days. Seeing the result in financial reports is a different story. Differences in weather and production schedules can mask or overstate the impact. You do not get an accurate picture in the short term from cost accounting reports.”

Additionally, making upfront expenditures, such as upgrading or replacing inefficient equipment, may prompt hesitation on the part of companies, but the energy savings eventually gained can easily outweigh the costs.

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