You certainly have cut costs in big budget areas to ensure your plant's competitiveness and ultimate survival. Have you overlooked energy? This source of savings is too often ignored because of these common misconceptions:

Myth #1:  Energy is a small percentage of our product costs so there isn't sufficient savings to be worth the effort.

Energy may be a small percentage of your product costs, but it is nevertheless a significant source of savings. With minimal effort and investment, you can cut waste and realize savings without sacrificing productivity, quality or worker satisfaction.

Myth #2:  Local energy costs are the lowest in the country and therefore the payback period on an energy-efficiency project would not be favorable.

By using only procedural and behavioral changes (and little or no capital investment), it is common to achieve a practical energy reduction of 4% to 6%, according to the U.S. Department of Energy. In addition, many corporations are realizing the indirect benefits of becoming a sustainable business, such as increased sales to enviro-sensitive companies and consumers.

Myth #3:  We already have grabbed the "low-hanging-fruit" of energy-efficiency projects; therefore, the cost-to-benefit ratio is not there for the remaining opportunities.

Energy management isn't a one-time project. Even the capital projects you have completed will reap diminishing returns if not well managed and maintained. The most successful projects are those considered part of a program of continuous improvement in which energy efficiency is viewed as a key performance indicator.

Myth #4:  Energy efficiency technologies always over-promise the amount of savings potential and there is no way to prove otherwise.

 There will always be hucksters selling "black boxes" that promise unrealistic savings. But measuring results is a cornerstone to a successful energy management program and you can demand proof. Installing metering on all major load centers lets you know exactly how your initiatives are performing.

Myth #5: It is a waste of time to propose an energy-efficiency project that has a longer payback period than our corporate standard.

Corporate standards for payback on energy-efficiency standards are changing fast. A growing number of companies are recognizing that consumers' concerns for the environment has been reflected in buying behaviors that are somewhat recession-resistant. Therefore, support for energy-efficiency projects have been growing beyond the direct cost savings.

Myth #6:  Our workers won't support energy-efficiency projects, especially if it creates any inconvenience to them.

Change is always a challenge. However, employees have certainly adopted other shifts in behavior when management supported them and clearly communicated expectations. Employees make personal decisions every day that impact energy use and, indirectly, the profitability of your facility. Employee communications, motivation, and education at all levels of the organization are key elements of an energy-efficiency program. Share success stories and invite suggestions for further improvements. Include all employees in celebrations for meeting energy targets. Communicate how employees can make a difference at work and at home.

Energy may not be your largest expense, but it is a huge opportunity for savings on overhead expenses. And as you know, saved overhead goes straight to the bottom line.