September 10, 2008—Economic and market indicators suggest that many types of US manufacturing are poised for a new period of major capacity investments as existing capacity approaches full utilization, according to a new report by the American Council for an Energy-Efficient Economy (ACEEE). At the same time, global trends are encouraging a shift to domestic production for domestic consumption.
ACEEE’s report, Trends in Industrial Investment Decision Making, suggests that these pending investments represent an opportunity to realize significant energy efficiency investments that can make important contributions to balancing energy markets while addressing concerns about climate-changing emissions.
Energy efficiency investments in the industrial sector are made differently from those in the commercial and residential sectors, explains ACEEE. Retrofit opportunities are much more limited in the industrial sector and project cycles can be substantially longer in order to coordinate with overall refit cycles. But efficiency savings in the industrial sector can be large and very cost-effective if they are implemented as part of a normal capital investment cycle.
The report reviews industrial investment decision making and presents insights into recent market trends. The report addresses several important questions:
- How should energy efficiency programs be responding in the near term?
- What investment trends are likely to emerge over the next 3-5 years?
- How can programs position themselves for future opportunities?
- What are reasonable energy savings expectations in the near and longer term?
Trends in Industrial Investment Decision Making can be downloaded for free from the ACEEE Web site or purchased for $16 plus $5 postage and handling from ACEEE Publications, 529 14th Street, NW, Suite 600, Washington, DC 20045.
