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.

Rob 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.

“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.”