Demand Response Can Lower Cost for Your Manufacturing Facility

As a manufacturing facility in a struggling economy, you may be finding it challenging to meet expenses on a regular basis. It’s not uncommon with fluctuating costs in materials, shipping and transportation, and even the costs of recruiting manufacturing personnel. Yet, there is a way you can bring in extra revenues this year. Joining a demand response program can improve your cash flow, lower your facility costs, and help to maintain a thriving manufacturing business. Here’s how.

A demand response program is one that asks manufacturing companies to reduce their electricity use during certain peak times, in an effort to protect the electricity grid. To be compensated as a manufacturing company, it’s required to reduce electricity usage in return for financial compensation. This can be significant, considering that a large manufacturer may receive a grant payment of as much as $50,000 during a single demand response event, simply by cutting power usage by 1,500 KW.

On the back-end  the company will also save money by reducing electricity utility bills. For the average manufacturing plant, this can be in the thousands of dollars. This is money that can be invested in other aspects of running a business, such as staff training, equipment upgrades, and building maintenance. The rewards and incentives of demand response program participants are many, including the ability to be a leading sustainable company in the manufacturing industry.

Additionally, it’s possible to reduce damage and wear to costly manufacturing equipment during power grid down-times  During unexpected power surges and voltage fluctuations, these electrical pulses can cause damage to equipment and even internal computing systems. However, as a participant in the demand response program, your company will instead be alerted to potential brownouts and surges in the power grid, giving you the ability to shut down beforehand.

Be prepared to participate in a demand response program by understanding that your facility will have to be wait listed for a time before acceptance, and you must be flexible in order to meet each program. This means also having access to temporary contract workers who can manage second and third-shift working hours, when your manufacturing plant will be encouraged to be at full operation. However, the rewards for participating in a demand response effort can far outweigh the requirements.

Get more information about Emergency Direct Response programs in Ohio and Michigan !





Looking for hard-to-find talent? Need a great temporary employee? We’ll help you find the people you want faster.

Job Seekers

Staffing Company works with dozens of local employers, and we can shorten your search for a great job.