by Brianna Crandall — September 17, 2014—Three-quarters of decision-makers at U.S. companies have invested in energy efficiency programs in the past 12 months, and more than half (56%) project their investment in energy efficiency next year will be more than last year, according to survey results just released by global energy management specialist Schneider Electric. This represents a 12% increase in energy efficiency investments and a 13% increase in projected investments in the past 12 months, according to a similar survey of energy leaders conducted by the company in June 2013.
“Increased investment suggests business leaders are seeing a return,” said Laurent Vernerey, President and CEO, North America Operations, Schneider Electric. “In fact, more than half (51%) of respondents said they realize at least a 25% ROI on efficiency initiatives. This type of return will drive more investment in efficiency applied across the enterprise — beyond energy consumption — as organizations find that they must become operationally efficient to remain competitive and profitable in today’s environment.”
Drivers
One potential driver of the increased investment is simply that a path to efficiency is now easier to measure due to a major trend emerging across the enterprise: the convergence of information technology (IT) and operational technology (OT), says Schneider Electric. When asked about the biggest trends impacting business today, more than half (56%) of respondents cited this trend, with 61% saying that energy efficiency was its biggest benefit. Byproducts of increased efficiency, including cost reductions (48%) and optimized business processes (43%), were also reported as benefits.
Challenges
However, respondents also acknowledged that this trend comes with its own set of challenges, including more complex technology management (55%), security (54%) and conflict between IT and operations staff (47%).
“The need for efficiency is increasing, as is the complexity on what companies can and should do,” continued Vernerey. “To stay competitive, more and more companies today need expertise on issues such as how to manage volatile commodity costs, balance sustainability pressures from governments, and modernize systems and infrastructure in a smart way.”
In fact, the survey confirmed modernization as another issue at the top of decision-makers’ agenda. Infrastructure upgrades followed the convergence of IT and OT, with 22% of respondents citing it as impacting their business. 51% of respondents believe infrastructure modernization is an important business priority, and 48% believe upgrading public infrastructure will make their city more attractive for business than others. Respondents said electrical systems (56%), traffic/transportation systems (53%), and telecommunications (48%) are the public infrastructure modernization projects that are most impactful on their business.
Trends
Efficiency initiatives (12%) and sustainability demands (9%) rounded out the list of the biggest trends. Energy efficiency initiatives were identified by respondents as the top way (59%) companies do more with less in today’s business environment and almost half of respondents said that sustainability initiatives improve profit margins (47%) and keep them competitive (49%).
“Progressive organizations are recognizing that efficiency is an emerging basis for competition,” concluded Vernerey. “Increased investment will result in greater efficiency gains, and that’s good for businesses, the economy and the environment.”
This survey was conducted among 301 employed respondents at companies with at least $ 50 million in revenue with a decision-making role in facilities management, operations management, technology management, supply chain management or energy/efficiency management. The interviews were conducted by Redshift Research in August 2014 through an online survey.
As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including utilities and infrastructure, industries and machines manufacturers, non-residential buildings, data centers and networks, and residential. The company’s 150,000-plus employees focus on making energy safe, reliable, efficient, productive and green. The survey announcement was made in conjunction with the unveiling of the company’s new LEED Silver-certified global research and development (R&D) center in Andover, Massachusetts, as the location of the company’s North American headquarters.
