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Content about Energy audit

April 30, 2013

CHICAGO — Best strategy for keeping things in check: audit energy use regularly

CHICAGO — In today’s competitive business environment, it makes sense that every dry cleaning plant operator is seeking ways to increase profit. But one can increase prices only so much. And with any potential labor savings having generally been rung out of most plants, operators must find other ways. Simultaneously, environmental impact is a major concern.

One of the areas in which to save, yet one that is often overlooked or glossed over, is the high cost of energy: electricity, heat and water. Hence, prudent dry cleaning plant operators are, or at least should be, having a critical look at this expense and seeking ways to reduce this financial drain.

Best of all, energy costs are among the expenses that can be reduced without negatively affecting product quality or staff productivity. The direct cost of energy generally represents about 6% to 18% of total operating expenses. For those who also have an attached coin laundry, it consumes between 15% and 20% of revenue. Both depend on which part of the country you are in and your plant’s efficiency.

March 27, 2012

SAN FRANCISCO — About 2% separates our industry’s average utility cost and the benchmark, which equates to another $20,000 of profit per $1 million of sales

SAN FRANCISCO — Small businesses are generally not very resource-efficient. This is certainly true of drycleaning and laundry plants. The differential between our industry’s average utility cost and the benchmark utility cost as a percentage of sales is approximately 2%, which equates to an additional $20,000 of profit per $1 million of sales. That is a savings worth pursuing.

The easiest way to reduce this expense is to have professionals conduct an energy audit. Often, your utility provider offers this service free. If that is not the case in your area, there are professional energy consultants who perform the same service and get paid a percentage of your resulting cost savings.

EFFICIENCY CHECKLIST

A myriad of resources exist on the subject, some of which are referenced later in this article. You are probably familiar with the basics of energy and resource efficiency, but the following “Efficiency Checklist” may be helpful as a refresher.

General:

• Track your resource usage

• Compare your usage to industry benchmarks

May 12, 2009

CAMBRIDGE, Mass. — Kirkland Cleaners, Cambridge, Mass., is reducing carbon emissions and utility consumption with the help of the Cambridge Energy Alliance (CEA) energy-efficiency program.

CEA gave Kirkland a free energy audit a year ago that recommended owners Patricia and Mark Birchem replace its old coin-op washing machines with high-efficiency front loaders, install automatic switches to shut off lights, and replace an inefficient 25-year-old hot-water system.

November 1, 2007

According to the business-statistics firm BizStats, the cost of utilities in a drycleaning plant is 5.8% of its total income; for coin-ops, which many plants also operate, it’s 18.6%. A limited, unscientific survey I conducted suggests that these figures are not far off. These are high percentages that threaten to erode profits seriously.