For manufacturers, energy is far more than another business overhead. It's fundamental to production, operational efficiency and profitability, yet the way energy is purchased doesn't always reflect the complexities of the business using it.
Two manufacturers can have similar levels of energy consumption and annual expenditure, but their operational requirements, commercial pressures and appetite for risk can be completely different. Despite this, energy procurement is often approached as an exercise in securing the most competitive unit rate, without enough consideration of how the business actually operates.
At Greenfields, we believe good energy advice starts with understanding the business behind the energy bill. That means getting out on site, seeing production processes first-hand and talking to the people responsible for keeping the operation running.
Here, Greenfields Energy Group Co-Founder Rich Clark shares why understanding a manufacturer's operations and building strong client relationships leads to better-informed energy purchasing decisions.
Understanding what matters to the business
Some manufacturers operate continuously, with energy-intensive equipment running around the clock, while others have fluctuating production schedules driven by customer demand or changing order books. These differences influence both energy consumption and the level of financial certainty or flexibility a business needs.
For example, a manufacturer working to long-term customer agreements may prioritise predictable energy costs, particularly where margins are tight. Another might prefer greater purchasing flexibility to respond to changes in production or opportunities in the wholesale energy market.
Neither approach is necessarily better than the other, but understanding those priorities is essential before recommending a purchasing strategy.
We often talk to clients about the operational cost of energy, encouraging them to look beyond the headline unit rate and consider how purchasing decisions affect the wider business.
This is why we place so much importance on visiting manufacturing sites and speaking with the people involved in those decisions. Finance, purchasing and operations teams often have different priorities, and bringing those views together helps us develop a strategy that supports the business as a whole.
Some of our most valuable conversations happen while walking around a factory, where we can better understand production processes, planned investments and how energy requirements might change.
Putting operational understanding into practice
Our relationship with The Anochrome Group, one of the UK's largest independent specialist coating businesses, demonstrates the value of this approach.
With four business units and energy playing a critical role in production, Anochrome needed purchasing arrangements that could accommodate changing operational requirements.
The business had experienced difficulties with previous energy consultants and contracts that lacked the flexibility and support required.
By spending time on site and working closely with key stakeholders, we developed a better understanding of the different production requirements and financial information needed to manage energy costs effectively. This helped us develop a more flexible and transparent purchasing approach, with arrangements better aligned to production cycles and more accurate cost tracking across individual business units.
For Anochrome, this has meant greater visibility over energy expenditure, improved budgeting and a purchasing strategy that can adapt to the needs of the business.
Managing risk around the manufacturing process
For manufacturers operating energy-intensive processes around the clock, certainty and control over energy costs can be particularly important. This is the case for Hereford Galvanizers, whose gas-fired furnace contains approximately 120 tonnes of zinc and forms a critical part of its 24-hour galvanizing operation.
Understanding the demands of this process has been central to how we've worked with the business to develop a flexible gas purchasing strategy, with decisions informed by its budgets, projected consumption and appetite for risk.
Regular meetings and ongoing conversations allow us to review market conditions together and make informed decisions about when to purchase energy.
For Hereford Galvanizers, this means greater involvement in purchasing decisions that reflect its own operational and financial priorities, rather than relying on arrangements that offer limited individual control.
Energy purchasing isn't a once-every-few-years decision
Effective energy management requires ongoing attention, particularly as manufacturers adapt their operations and energy markets continue to change.
At Greenfields, we work closely with clients throughout the life of their contracts, reviewing consumption, monitoring market conditions and discussing developments that could influence their energy requirements.
Our energy bureau services provide additional support through consumption reporting, bill validation, forecasting and assistance with supplier issues, helping businesses maintain greater visibility and control over their expenditure.
Sometimes our advice is to take action, while on other occasions it's about explaining why maintaining the current approach is the most sensible decision.
What's important is that clients have direct access to experienced people who understand their business and can provide advice when it's needed.
Relationships make better energy decisions possible
The relationships we build with our clients have always been at the heart of how we work at Greenfields, and I think they're particularly important in manufacturing.
Understanding the pressures facing a business develops through regular conversations, site visits and taking a genuine interest in its operations and future plans. It also means being prepared to have open discussions about risk, challenge assumptions and explain the reasoning behind our recommendations.
Many of our clients come to us through recommendations, which I believe reflects the trust that develops when businesses know they're dealing with people who understand their operation, take responsibility for their advice and remain involved long after the initial contract is signed.
If you're looking for greater control over your energy costs, or want to understand whether your current purchasing strategy is right for your business, get in touch to see how we can help.
Rich Clark | Co-Founder, Greenfields Energy Group
Email: rich@greenfieldsenergygroup.co.uk
Call: 07368 805120