Manufacturing 2015: Energy costs a key concern

COST remains a key issue for major consumers of energy such as manufacturers.

Devising and implementing strategies and processes to become leaner and greener has been a key initiative for a number of years, not least since the shale gas revolution in the US, helped manufacturers there to slash operating costs.

At a recent sector round table in Manchester , Vauxhall Motors’ HR director Phil Millward described energy costs as a “phenomenal” issue for the motor industry and all manufacturers.

This issue is highlighted in a North West supplement, produced by TheBusinessDesk with international law firm Squire Patton Boggs, which can be downloaded HERE . The Yorkshire supplement can be downloaded HERE and the West Midlands edition HERE .

There was general consensus too that there needs to be a coherent, long-term  national energy policy, which would enable industry to invest for the long term.

Squires ElvinRob Elvin, Manchester office managing partner at Squire Patton Boggs, pictured, and a sector expert, said: “For years, there have been calls on successive governments to create a coherent energy policy – but we’ve still to get anything like this implemented.

“And this – combined with escalating energy costs – is a source of major concern to many manufacturers. At one point, we appeared to be moving towards a new nuclear future but that subsequently stalled. The renewables sector is now in a state of flux, and another change in government policy has left question marks over the viability of solar and wind energy projects in the UK. Green Manufacturing

“But the question is this – what’s going to bridge the gap as the older fleet of traditional  fossil fuelled power stations are increasingly shut down? These issues need to be resolved with a coherent policy that has cross-party agreement so  that it won’t falter if there’s a change of government in the future.”

 

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