Manufacturing is a major energy consumer. Vendors continue to grow their business and increase their output, according to the US Energy Information Administration (EIA), On the plus side, their energy consumption growth rate was lower than their output rate, indicating that suppliers’ energy efficiency programs are helping to deter electricity demand.
US manufacturing gross output increased by 4% between 2014 and 2018, according to the EIA. Total manufacturing energy consumption in 2018 totaled 19,436 trillion British thermal units. Here are a few data points that illustrate where and why demand is increasing.
The chemical, petroleum and coal products, paper, and primary metals subsectors accounted for 77% of manufacturing energy consumption in 2018. Manufacturing consumption was highest in the South, and chemical manufacturing accounted for more than half (51%) of the South’s energy consumption. Â
Petroleum refineries accounted for 80% of the energy consumption in petroleum and coal products. Iron and steel mills accounted for 70% of the energy consumption in primary metals.
Among the top four energy consuming sectors, chemicals manufacturing had the most establishments and the largest energy and nonfuel energy consumption. Primary metals establishments had the second largest number of establishments (3,226), but the lowest total energy consumption (1,511 trillion Btu). Petroleum and coal products had the fewest establishments (1,883) but had the second highest total energy consumption (4,245 trillion Btu).
Manufacturers Emphasize Energy Efficiency
Manufacturing energy consumption rose by 3%, according to the EIA. Suppliers seem to be aware of the need to increase efficiency and have been trying to find ways to curb demand.Â
More than three out of five manufacturers (61%) either listed energy consumption as a high priority (22%) or implemented management supported projects to reduce energy consumption (39%). Petroleum and coal product suppliers (47%) had the largest percentage of energy consumption becoming a high priority. Petroleum refining (60%) had the largest percentage of energy consumption becoming a high priority within the petroleum and coal product manufacturing sector
Almost half (48%) of all manufacturing establishments participated in general energy management activities. ENERGY STAR was the most commonly used energy consumption improvement program: 43% of manufacturing establishments participated in the program. Primary metals establishments (62%) and plastics and rubber products (61%) had the largest percentage of participation in energy management activities.
Also, the installation of new devices or a retrofit to improve energy efficiency for facility lighting was quite common (56,841 establishments). Â Adjustable speed motors (24%) and computer control of processes or major energy-using equipment (15%) were used most often.
Energy audits, a popular energy management activity, were used most in the petroleum and coal products (33%), plastics and rubber products (31%), and apparel (30%) subsectors.
Manufacturing is a large and vital US business sector. The market has been growing, but the implementation of energy efficiency programs has helped to curb demand recently.