Energy Challenges and Solutions for Food Manufacturers in Singapore
The food manufacturing industry in Singapore faces several challenges, including rising costs, difficulties in finding skilled employees, increased competition, and consumers with limited disposable income. Amidst these struggles, energy costs have a significant impact on operating expenses, making energy efficiency a crucial consideration for businesses. However, despite the awareness of this issue, many manufacturers have not fully prioritized energy management, leading to a gap between beliefs and actions.
The Growing Pressures
Economic pressures continue to mount due to volatile raw material and labor costs. Additionally, Singaporean food and drink manufacturers experience difficulties in recruiting skilled workers. The demand for automation and innovation is increasing, putting a strain on margins and capital expenditure budgets. Moreover, energy prices have been unpredictable, and forecasts indicate further increases. This underscores the urgent need for improvements in energy efficiency, with technologies like AI playing a vital role in achieving flexible and efficient energy supplies.
Outdated Energy Strategies
Despite the significance of energy costs, many food manufacturers in Singapore still rely on outdated energy strategies. To address this issue, industry players must focus on implementing energy-efficient technologies to optimize their operations and increase their competitiveness.
Short-Term Fixes
Singaporean food manufacturers can initiate several short-term energy-saving measures to enhance their margins and reduce costs. Replacing conventional lighting with energy-efficient LEDs can yield potential energy savings of up to 75%. Installing motion sensors to activate lights only when necessary and utilizing effective process measurement and control can also lead to significant energy savings. Regular maintenance and implementing ‘on-demand’ air compressor management for refrigeration systems are simple yet effective solutions.
Leveraging New Technologies
For substantial long-term gains, food manufacturers in Singapore should explore cutting-edge energy generation technologies, such as solar power and combined heat and power (CHP). CHP systems can provide a remarkable 40% reduction in energy costs and typically recoup their initial capital outlay within 3 to 5 years. Furthermore, using energy insight tools allows businesses to pinpoint energy consumption at a device level, helping identify areas where energy-saving solutions should be implemented.
Energy Solutions for Food Manufacturers
To tackle energy-related challenges effectively, partnering with experts such as Energy Solutions can be beneficial. They work closely with food manufacturers to identify areas of energy consumption and implement energy-efficient measures. Moreover, Energy Solutions can ensure a flexible and reliable energy supply to support increased automation and AI implementation, enabling businesses to respond to industry changes while optimizing cost-effectiveness.
Flexible Energy Contracts
Flexible energy contracts offer an attractive solution for manufacturers in Singapore. These contracts allow businesses to take advantage of wholesale energy market fluctuations, presenting opportunities during periods of volatility. By accurately estimating their predictable energy demand through smart meters, sub-meters, and energy audits, manufacturers can trade their excess energy or top up as needed, leading to substantial cost savings.
The Importance of Energy Brokerage
For food manufacturers, energy brokerage services play a vital role in managing their energy needs efficiently. An energy procurement specialist can act as a knowledgeable consultant, ensuring businesses stay on the best energy contract available, saving them time and money to focus on core operations.
Navigating Uncertain Energy Markets
In the face of the ever-changing global energy landscape, keeping up with developments and their implications can be overwhelming for manufacturers. Partnering with energy experts helps businesses stay informed and make informed decisions about their energy strategies.
How Does This Differ to Food Manufacturers in the United Kingdom?
Well, an Energy Broker from the United Kingdom took a look at this and had some fascinating findings.
Costs are rising sharply for all in the industry, skilled employees are difficult to find, new competitors keep rising, and cash-strapped consumers have ever dwindling amounts of income to spend on your products. It is, in short, not a fantastic time to be a food manufacturer.
The industry standard for margins is currently at about 5.3% – a 1% reduction from an average of 6.3%. Of this, energy typically accounts for 15% of operating costs.