On February 26th, over 200 Ontario manufacturing leaders including T&T Power Group attended the Canadian Manufacturers & Exporters’ Energy 2019: Powering the Future of Manufacturing Conference in Mississauga.
The event allowed attendees to explore the risks associated with undervaluing the importance of energy policies and management as well as supply chain opportunities, all through very insightful discussions of strategies for decreasing energy costs and increasing efficiencies.
There were a handful of guest speakers that attended the event, including the President of Pollara Strategic Insights, Craig Worden, who presented on Insights on Electricity Pricing in Ontario
During his presentation, Mr. Warden opened our eyes to just how prevalent and necessary the demand for more cost-efficient energy production is among Ontario manufacturers. He explained that, on average, electrical costs make up 20% of expenses for Ontario manufacturers – and that nine out of ten manufacturers feel that their company’s electricity rates are too high.
Most manufacturers in Ontario also believe they pay higher rates most other States and Provinces, raising concerns about competitiveness. And surely, these high energy costs have contributed to the 24% increase in layoffs/terminations in the Ontario Manufacturing sector.
Based on these insights, it’s easy to see why manufacturers in Ontario are increasingly turning to on-site power generation to secure their future energy costs.
In a 2016 IESO Conservation Results Report, Terry Young, who is the IESO’s Vice President of Policy, Engagement and Innovation explained that 65 per cent of people reported to have talked about energy conservation with friends and family in 2016 – compared to just 58 per cent in the previous year.
“Electricity consumption [in Ontario] was about nine percent lower in 2016 than it was 10 years earlier – due in large part to conservation programs, innovation, new technologies and ongoing changes in energy-use behavior”, Terry stated in his message. “More people than ever understand the value of using energy wisely and say they know what to do to conserve.”
So, while energy costs continue to exist as a threat (especially to Ontario manufacturers), it appears that customers are more empowered now than ever to focus on the solution.
And right now, this solution includes the adoption of new strategies and technologies in used power generators and on-site power generation to promote a more cost-efficient and eco-friendly means of power generation.
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