Boosting energy efficiency in manufacturing: a smart move for SMEs
In the UK, manufacturing accounts for a significant portion of industrial energy use – around 17% of the nation’s total1. For small and medium-sized enterprises (SMEs) in this sector, energy bills can feel like a fixed cost. But with a proactive approach, energy efficiency can become a powerful lever for cost savings, environmental responsibility, and operational resilience.
Why Energy Efficiency Matters
Improving energy efficiency isn’t just about reducing bills, it’s about future-proofing your business. It helps meet environmental standards, and demonstrates corporate social responsibility, whilst contributing towards the fight against climate change. For manufacturing businesses, these benefits can also enhance brand reputation and stakeholder trust.
Key Areas for Energy Savings
Manufacturing processes are diverse, but several common areas offer opportunities for energy savings:
1. Heating Systems
Heating is essential for comfort, but often not core to production. Yet, it can account for a large portion of energy costs. Small manufacturing businesses could save up to 20% on heating1by:
- Regularly checking thermostats and time schedules.
- Maintaining boilers to avoid energy waste.
- Switching to radiant heating for targeted warmth.
- Insulating pipes and tanks to prevent heat loss.
- Considering multiple small boilers with automated controls for efficiency.
2. Compressed Air
Compressed air is costly and often misused. Up to 30% of compressed air costs could be saved1by:
- Turning off idle compressors.
- Using alternatives like low-pressure blowers or vacuums.
- Maintaining compressors and detecting leaks.
- Reusing heat generated by compressors for space or water heating.
3. Motors and Drives
Motors consume about 25% of a site’s electricity1. Efficiency can be improved by:
- Switching off unused motors.
- Regular maintenance and predictive software.
- Making sure that your motors match the actual power needed for the equipment they run
- Installing Variable Speed Drives (VSDs) to match motor speed with demand – potentially saving up to 30% on running costs1.
4. Process Heating and Drying
Simple changes like operating equipment at full capacity or using mechanical de-watering can reduce heating needs. Recovering waste heat for preheating or space heating is another smart move. For dryers and ovens:
- Maintain insulation and filters.
- Avoid over-drying products.
- Use automatic controls to prevent unnecessary preheating.
- Keep oven doors closed and install air curtains.
5. Process Cooling
Monitoring and controlling cooling systems is key. Installing sub-meters helps track energy use and identify inefficiencies. Preventive maintenance and avoiding over-cooling through effective controls can lead to substantial savings.
Smart Meters and Energy Management
Smart meters can give small manufacturing businesses a clearer picture of how and when energy is being used, almost in real time. This helps businesses spot where energy is being wasted and make smarter decisions about when to run equipment or adjust processes. Installing a smart meter can also help track the impact of energy-saving changes and make it easier to plan for future upgrades or investments. When combined with good energy management, like scheduling equipment use, involving staff, and choosing efficient machinery, smart meters could lead to significant cost savings and improved operational efficiency.
Ready to Take Control of Your Energy Use?
Energy efficiency isn’t just for large corporations. Small businesses in manufacturing can benefit hugely by taking control of their energy use. From heating and compressed air to motors and cooling systems, small changes can lead to big results. Start with a smart meter, build a culture of energy awareness, and explore sector-specific advice to make your operations leaner, greener, and more cost-effective.
For more practical advice on how to reduce your emissions and save on your energy costs, download our guide created in partnership with the Carbon Trust.
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The information in this blog is based on resources and guidance from the Carbon Trust. Accurate as of April 2026. For more information, visit the Carbon Trust’s website at carbontrust.com