June 22, 2007—Results from a first-time survey of North American business leaders indicate they expect energy prices to continue to rise, and respondents plan to invest in energy efficiency measures to help fight rising costs.
The leaders cited a desire to decrease energy expenditures within their organizations as a greater motivator over environmental responsibility, according to research commissioned by Johnson Controls, Inc., a global leader in creating smart environments.
The Johnson Controls Energy Efficiency Indicator research identified 1,249 individuals from a wide range of facilities and locations who were decision-makers for energy management issues and asked how they were responding to rising energy costs. Members from the International Facility Management Association (IFMA) were included as survey respondents. Johnson Controls plans to repeat the Energy Efficiency Indicator research annually.
Fifty-two percent of the respondents say costs savings are either entirely or somewhat the driver for their decision to invest in energy efficiency measures. Thirty-five percent say cost savings and environmental responsibility are equal motivators, while only 13 percent cite environmental concern as the greater motivator.
Almost 57 percent expect to make energy efficiency improvements using their capital budgets, spending an average of 8 percent of those budgets. In addition, 64 percent anticipate using their operating budgets, allocating 6 percent to energy efficiency improvements.
Executives are generally restricting their investments to more conservative energy management solutions. Of respondents who have already made energy efficiency investments, 70 percent educated staff and other facility users on how to be more efficient; 67 percent switched to energy efficient lighting; 60 percent have adjusted HVAC controls; and 46 percent have installed lighting sensors.
When it comes to energy supply-related matters, 36 percent have negotiated energy contracts with suppliers, while only 14 percent are putting energy price hedging strategies in place. In addition, 11 percent currently have a stated carbon reduction goal.
About two thirds of companies (64 percent) have a maximum payback period of between two and five years. Overall, only 18 percent of those surveyed say their companies would allow a longer payback period today than five years ago. About 45 percent say the required payback period has not changed compared with five years ago.
Executives responsible for larger facilities (500,000 square feet or more) are an exception. They spend a bigger part of their budgets on energy, are planning to invest more of their budgets on energy efficiency measures, and will tolerate a longer payback period.
Johnson Controls is a global leader in automotive experience, building efficiency and power solutions. For more information, see the Web site.
The complete report may be found online.
