The energy crisis is impacting greatly on dealers and manufacturers throughout the country. Although the government has announced a series of measures, are they enough, and what additional steps can businesses take to protect themselves from rising energy costs? Industry experts share their thoughts
Mark Wilkinson, regional vice president UK and Ireland, Acco Ltd
“It’s clear that the ongoing energy crisis, caused by the war in Ukraine and post-COVID supply chain challenges, is having a significant and material effect on our industry. Unfortunately, this is translating into higher inflation in the market, which is unavoidable. For dealers, some inflation can help drive revenue, but where they struggle to pass on these prices it will cause real problems to margins. Many vendors are having to work very hard to try and return margins to pre-pandemic levels and this latest crisis is another barrier to delivering on this.
“In ACCO UK we are advocates of the ISO accreditation process. In addition to 14001 and 9001 we also have accreditation for 50001 which is all about energy management and reducing energy usage. One specific example we are looking at is solar; for example, in our Polish operation, we have built a solar farm near our manufacturing plant. If you take the ISO processes seriously, and work with the auditors, they can help you find lots of practical ways to measure and improve energy usage. Good measurement and understanding of processes are key.
“We are grateful for the initial support from the government, but we’ll have to see how long that lasts and what else happens in the energy markets in the interim. There could always be more support, but I think we also must reflect on the current reality and manage for that situation.
“I have an optimistic view for dealers; they may struggle to compete with the ‘big box players’ purely in terms of price or service; however, the dealer channel remains highly resilient – it is the only place where regional and local national customers can get a true one stop service that meets their requirements in terms of range, bespoke supply needs and a supplier that really understands those needs. Dealers may be smaller, and fewer in number than a few years ago, but they still have a key part to play.”
Sam Elphick, sales director, Lex Business Equipment Ltd
“The energy crisis is, unquestionably, not only putting a financial strain on domestic users but also on commercial users too. In 2019 we converted the conventional lighting within our premises to LED, and have seen a good reduction in our electricity outgoings by doing this, but the worry for all will be what happens once the winter months set in, and gas usage is at its peak and businesses figure out how to navigate this overhead surge.
“I found that, in our case, business gas suppliers were not as supportive or transparent when it came to explaining what the price increases would mean for us. We had to do our own, internal, calculations based on previous years’ usage multiplied by the new unit rates; this has allowed us to forecast appropriately for the increases, factoring in the recently announced temporary assistance that the government has pledged. I do hope that further support can be offered by the government to those businesses which have a high energy output as, in the long term, the prolonged rises will mean further price increases to consumers.
“There are mixed responses when speaking with fellow business owners on the topic of office premises. Some say their staff welcome working more days in the office, in order to mitigate their personal heating costs, whilst others experienced their staff asking to work from home for much of the week which, in turn, helps keep premises heating costs down over the looming winter months.”
“The energy crisis is having a national effect on UK dealers and manufacturers, and the industry is having to adapt to, and accommodate, an ever-changing and uncertain environment. The announcement of the six-month Energy Bill Relief Scheme, which is set to end for all but the most vulnerable in April 2023, means businesses must implement measures to minimise their energy usage and ensure their staff are supported through this challenging period.
Flexible working, solar power and LED lighting are just three ways your business can save energy, so how can you identify the best ways for your business to prepare for the future?
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