factory with tall metal pipes

The Biggest Energy Users In Your Facility — and what to do about them

For industrial and manufacturing businesses, energy isn’t a background cost. It’s a core input — as fundamental to production as raw materials, labour and machinery. And with wholesale electricity and gas prices remaining at elevated levels heading into winter 2026, understanding exactly where your energy is going is more important than ever.

Most manufacturers have a broad sense that certain processes use more energy than others. Far fewer have a clear, site-specific picture of where their consumption is actually concentrated — and fewer still have an active programme to reduce it.

This article sets out the equipment and processes that typically account for the largest share of energy consumption in industrial and manufacturing facilities, and what you can do to manage that consumption effectively.

1. Electric motors and drives

Electric motors are the single largest consumer of electricity in most manufacturing facilities. Across British industry, motors account for an estimated 65–70% of total industrial electricity consumption, powering everything from conveyor systems and fans to pumps, compressors and machine tools.

The inefficiency in most motor-driven systems doesn’t come from the motors themselves — modern motors are highly efficient at full load — but from the way they’re operated. Motors running at fixed speed to meet variable demand are inherently wasteful. A fan or pump running at full speed to move a variable volume of air or fluid dissipates the excess energy as heat or mechanical resistance.

What to do: Installing variable speed drives (VSDs) on motors that operate under variable load conditions is one of the highest-return energy investments available to manufacturers. The energy consumed by a fan or pump is proportional to the cube of its speed — reducing speed by 20% cuts energy consumption by nearly 50%. Payback periods of one to three years are common, and the savings persist for the lifetime of the equipment.


2. Compressed air systems

Compressed air is often called the fourth utility — alongside gas, electricity and water — and in many manufacturing facilities it’s the most expensive one per unit of energy delivered. The overall efficiency of a typical compressed air system, from electrical input to useful work output, is often below 10%. The rest is lost as heat, leakage and pressure drop.

Leaks alone typically account for 20–30% of compressed air production in facilities without an active leak detection programme. In a large facility, that can represent tens of thousands of pounds of wasted energy annually.

What to do: Commission a compressed air audit. Leak detection surveys using ultrasonic equipment can identify and quantify leakage across the system quickly and cost-effectively. Beyond leak repair, consider whether system pressure can be reduced — every 1 bar reduction in system pressure saves approximately 7% of compressor energy — and whether heat recovery from compressors can be used to offset heating costs elsewhere on site.


3. Process heating

For manufacturers involved in metalworking, food processing, ceramics, glass, chemicals or plastics, process heating is typically the dominant energy cost. Whether delivered by gas-fired furnaces, ovens, kilns, steam boilers or electric resistance heaters, process heating often accounts for 50–80% of total energy consumption in heat-intensive industries.

Inefficiency in process heating arises from multiple sources: poor insulation leading to heat loss through surfaces, excess air in combustion processes, inefficient heat transfer, and the energy embodied in waste heat discharged to atmosphere.

What to do: The hierarchy of interventions for process heating runs from insulation and combustion optimisation at the bottom through to process redesign and waste heat recovery at the top. Heat recovery — capturing waste heat from furnaces, ovens or flue gases and using it to preheat incoming material or air — can reduce fuel consumption by 20–40% in many applications. For steam users, a steam system audit typically identifies savings of 10–20% in most facilities.


4. HVAC and space heating

Heating, ventilation and air conditioning systems in manufacturing facilities are often significant energy consumers, particularly in large, high-bay buildings with high air change requirements, or in facilities with controlled environment requirements for temperature-sensitive processes or products.

Many industrial HVAC systems were designed and installed decades ago, and are significantly less efficient than current-generation equipment. Oversized systems, poorly calibrated controls, inefficient heat distribution and inadequate insulation all contribute to higher-than-necessary consumption.

What to do: Start with controls. Heating and ventilation systems that run to fixed schedules regardless of occupancy, outside temperature or production activity are common in manufacturing facilities and represent straightforward savings. Building energy management systems (BEMS) that adjust HVAC operation dynamically based on actual conditions can reduce heating and ventilation energy by 20–30% without any capital investment in the plant itself. For facilities with older boiler plant, modern condensing boilers or heat pumps can deliver significant efficiency improvements.


5. Lighting

Industrial lighting accounts for a smaller share of total energy consumption than motors or process heating, but it remains a meaningful cost — particularly in facilities operating across multiple shifts or with large footprints that require continuous illumination.

High-bay metal halide or fluorescent luminaires, which remain common in older manufacturing facilities, are significantly less efficient than modern LED alternatives. They also have substantially longer warm-up times, making them unsuitable for occupancy-controlled switching without modification.

What to do: LED replacement programmes in industrial facilities consistently deliver energy savings of 50–70% on lighting loads, with payback periods typically below three years at current electricity prices. Combining LED replacement with daylight-linked dimming controls and occupancy sensing in areas with intermittent use extends the savings further. For facilities operating multiple shifts, the savings from LED replacement are proportionally higher.


6. Refrigeration and cooling

For food manufacturing, pharmaceutical production, cold storage and distribution operations, refrigeration is typically the largest single energy load — often exceeding 50% of total site electricity consumption. Even in facilities where refrigeration is not a core process requirement, cooling systems for machinery, products or controlled environments can represent a significant overhead.

Refrigeration systems lose efficiency through condenser fouling, refrigerant degradation, poor insulation on cold rooms and pipework, and systems operating at lower temperatures than required.

What to do: Regular maintenance — condenser cleaning, refrigerant top-up and leak checking, door seal replacement on cold rooms — maintains system efficiency and is often overlooked. Beyond maintenance, consider whether setpoint temperatures can be raised in any areas without compromising product quality or safety, and whether free cooling — using outside air to supplement mechanical cooling during cooler periods — can reduce compressor run hours.

factory with tall metal pipes

7. Machine tools and production equipment

CNC machining centres, injection moulding machines, presses, welding equipment and other production plant vary enormously in their energy consumption depending on age, technology and how they’re operated. Older equipment tends to be significantly less efficient than modern equivalents, and equipment running in standby or idle modes can consume a surprisingly high proportion of its full-load energy.

What to do: Carry out a baseline assessment of energy consumption by machine and by production line. This requires half-hourly metering data at equipment level — something that smart sub-metering systems can now provide cost-effectively. Understanding which machines consume the most energy per unit of output identifies where investment in modern equipment delivers the strongest energy return, and highlights where operational changes — shift scheduling, standby management, set-up optimisation — can reduce consumption without capital expenditure.


8. Water heating and steam

Hot water and steam are required across a wide range of manufacturing processes, from cleaning and sterilisation in food and pharmaceutical production to process heating in chemicals and textiles. Steam systems in particular are often inefficient — through steam trap failures, distribution losses, flash steam losses and condensate that isn’t recovered and returned to the boiler.

What to do: A steam trap survey is one of the most cost-effective energy audits available to manufacturers using steam. Failed steam traps that pass live steam to drain are common and easily identified, and repair or replacement typically pays back in weeks. Beyond trap management, condensate return — recovering hot condensate rather than discharging it to drain — reduces both energy and water treatment costs.


An energy management approach

Understanding your biggest energy users is the first step. Translating that understanding into cost savings requires a structured approach.

Half-hourly metering and monitoring. You cannot manage what you cannot measure. Half-hourly smart metering data, ideally broken down at sub-meter level by process or production area, gives you the visibility to identify patterns, pinpoint waste and measure the impact of changes. Many manufacturers are surprised by what they find when they look at their consumption data in detail.

Demand management. The timing of energy consumption matters as much as the volume. Running energy-intensive processes during overnight or off-peak periods reduces exposure to peak demand charges and Triad risk, and can reduce commodity costs on flexible contracts. Demand-side response schemes can turn load flexibility into a revenue stream.

Procurement strategy. None of the above replaces the need for competitive energy procurement. Buying energy at the right price, on the right contract structure, at the right time in the market cycle is the most direct lever on your energy cost. In the current market — with wholesale prices at elevated levels and significant volatility across the forward curve — getting procurement right has rarely mattered more.


How Cibus Energy can help

At Cibus Energy, we work with industrial and manufacturing businesses to reduce energy costs across the full spectrum — from procurement and contract management through to consumption analysis, efficiency support and levy optimisation.

We understand the energy profile of manufacturing facilities, and we know how to structure procurement and management strategies that reflect the way you actually operate — shift patterns, seasonal demand variations, process interdependencies and all.

Whether you’re looking to benchmark your energy costs against the market, identify your biggest consumption drivers, or secure a competitive contract before winter, we’re here to help.

Speak to Cibus Energy Today.

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