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Energy Management Activity, 1998 and 2002

Released: August 2006

Manufacturing Establishment Participation in Energy Management Activities by Program Type

Associated with the increased cost of energy between 1998 and 2002 is a general increase in participation in energy management activities by manufacturing establishments.

Figure 1. Manufacturing Establishments Participating in Energy Management Programs, 1998 and 2002

Figure 1 shows that for virtually all of the programs listed, there has been an increase in participation from 1998 to 2002 by manufacturing establishments. When the cost of inputs to production processes, such as energy sources, undergo percentage increases greater than that of the price of the manufactured product, profit margins are squeezed. Responses to this condition can include initiating an effort to improve energy management.

Figure 2. Manufacturing Establishments Installing or Retrofitting Equipment with Primary Purpose to Improve Energy Efficiency, 1998 and 2002

More manufacturing establishments, in an effort to improve energy efficiency, installed new or retrofit equipment in 2002 than in 1998. In Figure 2, as in Figure 1, the increase is in both percentage and establishment count.

Forty percent of manufacturing establishments participated in an energy efficiency program1 or equipment upgrade to improve energy efficiency in 2002. This was up 7 percent from 1998.

Manufacturing Establishment Participation in Energy Management Activities by Industry

Figure 3. Participation in Energy Management Activities Among Establishments in Energy Intensive Industries

Industry groups that traditionally consume the most energy2 participated in some kind1 of energy management activity at a higher percentage than the sector overall. Each of the subindustries listed in figure 2 participated well above the sector-wide levels for both 1998 and 2002 (33 and 40 percent, respectively). In each of these groups, except for primary metals, the participation percentage increased from 1998 to 2002.

Figure 4. Participation in Energy Audits by Industry and Funding Source, 2002

Figure 5. Establishment Participation in Steam Production System Upgrade by Industry and Funding Source, 2002 (Percent of Establishment Participants Fully Funded In-House vs At Least Some Outside Funding Within Bars)

Establishment Participation in Machine Drive Efficiency Upgrade by Industry and Funding Source, 2002 (Percent of Participating Establishments Fully Funded In-House vs. At Least Some Outside Funding Within Bars)

In terms of percentage of establishments, energy-intensive industries2 participated in energy audits, steam production system upgrades, and machine drive efficiency upgrades more than the manufacturing sector overall. Figures 4, 5, and 6 contain the percentage of establishments participating in the respective program by industry. For each industry, it also gives the percent of establishments participating in the program type that were funded completely in-house and the percent that used at least some funds from other sources (such as government or an energy-supplier program).

Each of the subsectors listed in the three figures above had significantly more participation, led by the petroleum and coal industry, in each of the three program types, than the overall sector. Each of these five industries also had a higher percentage of the programs completely funded by the establishments themselves than was the case in the sector overall. It should be noted that the "other" category includes instances where some in-house funding was used. Total dollars spent on energy management is not available.

While the relationships in Figures 4, 5, and 6 are similar in terms of energy-intensive industry participation relative to the manufacturing sector overall, there are some notable differences in other regards. The percentage of establishments fully funding energy audits is significantly lower than the percentage of establishments fully funding efficiency upgrades in machine drive and steam production systems. The percent participation also varies between the three programs in these figures. A much lower percentage of establishments made efficiency improvements to their steam production systems than they did for machine drive systems, and for most industries the percent participation in machine drive efficiency upgrade programs was lower than the percentage of establishments conducting an energy audit.

Table 1. Manufacturing Industries with 80 Percent or More Establishments Participating in One or More Energy Management Activity, 2002
NAICS Industry Number of Establishments Percent Participation in One or More Energy Management Activity3
311-339 Manufacturing - Total
      200,710
40

311221

 Wet Corn Milling
  49
86
322110 Pulp Mills
  34
91
322121 Paper Mills, Except Newsprint
323
93
322130 Paperboard Mills
210
83
324110 Petroleum Refineries
215
85
325110 Petrochemicals
  37
87
325193 Ethyl Alcohol
  48
83
327211 Flat Glass
  38
92
327213 Glass Containers
  61
80
331112 Electrometallurgical Ferroalloy Products
  15
80
336112 Light Trucks and Utility Vehicles
  42
88


   Notes: "One or More Energy Management Activity " refers to the programs in MECS Table 8.1 and not the programs listed in Figure 1 and Figure 2, which are subsets of the energy management programs that can be found in table 8.1. There are programs in the 1998 table that are not in the 2002 table and vice versa. These were excluded from the figures in this report.

   Source: Energy Information Administration, 2002 Manufacturing Energy Consumption Survey -- Table 8.1: Number of Establishments Participating in Energy Management Activities.

Several manufacturing industries in 2002 had very high percent participation in one or more energy management activity. The industries listed in Table 1 all had 80 percent participation or more, which was more than twice the percentage of the manufacturing sector overall. Most of these industries come from industry groups listed in figures 4, 5, and 6 above, which are the most energy-intensive industries in the sector.

These figures imply that participation in energy management activities has been on the rise and that industries that use the most energy lead the sector overall in participation. This is not surprising as establishments in these industries have the most to gain from energy management.

Endnotes

1 "Any Program" refers to the programs in MECS Table 8.1 and not the programs listed in Figure 1 and Figure 2. This set of programs is a subset of the energy management programs that can be found in Table 8.1. There are programs in the 1998 Table that are not in the 2002 table and vice versa. These were excluded from the figures in this report.

2 In terms of first use of energy sources (energy used for all purposes), the subsectors in Figure 3 accounted for 83 percent of the total Btu's used in the manufacturing sector in 2002.

3 Refers to the set of activities in MECS Table 8.1

Contact

William Gifford
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Mathematical Statistician
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Fax: 202-586-0018

Robert Adler
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Survey Manager
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