Category: Intelli-Hood

“We’ve Done Benchmarking. We’ve Done Lighting. What’s Next?!” Kitchen Ventilation.

Posted on by Lindsey Burbee

The Benefits of DCKV

Kitchen ventilation, both exhaust and make up air, represent a significant opportunity for kWh and kBTU reductions in your facility. Demand Control Kitchen Ventilation, (DCKV) uses temperature and optic sensors to vary exhaust speed and make up air fans.  This is in response to precise cooking intensity underneath all kitchen hoods. With fans only running as needed, savings are gained on fan energy (controls produce 40-60% average fan speed versus 100% without controls). In addition, there are heating and cooling savings gained as a result of kitchens not evacuating all air that was just conditioned.

These controls can be installed in new construction projects. They’re usually specified by engineering firms in the design phase of your project, and should qualify for one LEED point. In addition, DCKV is a path to compliance for commercial buildings’ energy codes for states that have adopted ASHRAE 90.1 2010 and greater. You can see what your state’s requirements are here.

Retrofitting

Retrofitting the temperature and optic controls within existing kitchen exhaust hoods is equally effective at generating energy savings. It’s important to confirm that the controls are UL 710 and 2017 listed. This permits them to be installed in any manufacturer’s hood in any cooking application. There are many utility rebate incentive programs available for the installation of DCKV as well.

Kitchen Ventilation in Action

The financial impact for hospitals’ operating costs is significant when kitchen exhaust and makeup air fans no longer run at full speed 24/7.  A study by the EPA demonstrated that each dollar saved by a non-profit hospital, is the same as generating $20 in new revenues. Incidentally that same dollar saved in a for-profit facility is like increasing EPS by one penny.

Melink recently completed a Mid-West hospital project that produced $20,000 (per year) in combined savings. The savings included electrical, heating and cooling costs. Using EPA study metrics, this equivalates to $400,000 in new revenue for this facility.  Taking rebate incentives for our technology, the hospital’s ROI was less than one year.

The Purpose of DCKV

The goal of any DCKV project is to install controls that maximize the energy savings within the kitchen. In addition, DCKV will assist compliance with building energy codes, attain LEED points and make kitchens quieter and more comfortable. This article goes into greater detail and dives deeper into how these controls pay back initial investment. The articles recently appeared in the American Society for Healthcare Engineering publication, Inside ASHE.

Find the Inside ASHE article on kitchen ventilation here.

Energy Conservation in Commercial Buildings

Posted on by Lindsey Burbee

There’s no doubt that energy conservation in commercial buildings (or any building for that matter) is important.  Reducing operating costs are important for valuations, freeing capital up for other projects or simply reducing the carbon footprint of your building, or portfolio of buildings.  There are many different ECMs (energy conservation measures) available to companies to help achieve these goals, and almost always the decision to use certain measures comes down to “I have to be at 3 years or less for the simple payback”.   While financial metrics are important, I believe that this focus often obscures the soft benefits to the building’s occupants and workers.

 A noise study was recently completed where a corporate kitchen’s noise levels were measured before and after the installation of variable speed controls on both the hood exhaust and supply fans. Traditionally kitchen exhaust fans run at 100% speed for constant periods of time.  With the addition of a variable speed system, like Melink Intelli-Hood, fan speeds are reduced to slower speeds when cooking isn’t at its maximum.  From an energy savings perspective there are two buckets of operational cost reductions, fan energy and conditioned air.  The chart below shows that when the kitchen fans are operating at 100% speeds the decibel level is just short of what a fire alarm sounds like when activated.  With the addition of the variable speed controls, the site realized much lower average fan speeds, as well as a reduction in kitchen noise levels to just below conversational speech, or a reduction of 11 decibels. 

The financial metrics for this project met all approval hurdles and the site is very happy.  For a moment, think about the Chef and his staff.  Their work environment has now become much more quiet.  They can hear each other better when they’re coordinating and preparing meals for several hundred employees each day.  Shouting and miscommunication is greatly reduced, and their environment is more pleasant.  This particular improvement would be hard to show on an income statement…or would it? 

As one example, within Seniors Housing, Dining Services is consistently near, or at, the top in employee turnover percentages.  The current industry turnover rate is 36.91%, (McKnight’s Senior Living, Salaries and Benefits Report 2017-2018) with Certified Nurses Aids coming in a close second at 34%.  It will cost a facility approximately $2,500 in recruiting and training to backfill a single new employee.  Compound that amount with multiple hires each year and it gets expensive very quickly.  If along with reducing energy costs a site can also create a better work environment for its full time employees (FTE), then perhaps that large expense can begin to be reduced and more employees will remain on the payroll instead of seeking other places to work. 

See the full case study here or contact us today to learn more about Intelli-Hood and the benefit of kitchen hood controls.

A Good Time For Technology

Posted on by Lindsey Burbee

Future of Technology

“Life moves pretty fast.  If you don’t stop and look around every once in a while, you could miss it.”  In my estimation, this quote from Ferris Bueller is more relevant now than when first uttered.  We’re in a period where everything continues to speed up. We’re moving along at breakneck speed to get to the next task, the next meeting, the next event, that it’s often easier to keep your head down.  The downside is that it’s easy to miss some of the amazing things happening in the world due to technology.

Smartphones

Smartphones, for example.  In the span of just a few years they’ve managed to become a nearly indispensable tool.  Gone are the days of proud parents stuffing their wallets with photos – you now have a literal gallery at your beck and call.  Simply carrying the phone gives us the ability to capture those special moments that in years past may be missed.  Try remembering what life was like travelling to a new city before we started carrying portable GPS units in our pockets.  What would previously take hours of planning is now done in minutes (if not seconds).  That’s not to say the consequences of ‘pocket computers’ have been beneficial, but I’d argue the good outweighs the bad by a significant margin.

Furthering Technology

Imagine opportunities to create new technology.  Instead of further connecting people (like the smartphone did), think of developing the next generation of sustainability.  Advancing business capabilities to reduce the amount of energy they consume and to make facilities healthier.  To help build intelligence that create win-win scenarios for companies and consumers at the same time.   Regardless of anyone’s beliefs on climate change and why it’s happening, it’s clear that the climate is changing.  Another thing that has been clear for some time is that the resources that we have on this planet are finite.  Finally, we’ve also learned that the cheapest energy of all is the energy that doesn’t get used.

Make an Impact

Right now, there is such an opportunity available.  Melink is actively searching for an Embedded Software Engineer and an Application Developer who would like to join our family as we continue our journey towards a brighter, more sustainable tomorrow.  We’re growing our sustainable offerings. These offerings include energy-saving demand controls for commercial kitchens (Intelli-Hood), innovative geothermal solutions (Manifest), and HVAC commissioning (Test and Balance). Melink is about to release an innovative new building health monitor (PositiV) and has more innovation on the way.  We’re also creating an awesome Portal that will connect our employees, technology, products, and customers with a clean, intuitive interface. This will create new applications to expand the reach of our hardware and improve the work-life balance of our employees.  Help us build the new tomorrow.

Apply online here

Noise! Noise! Noise! Reduce The Noise!

Posted on by Lindsey Burbee

The Holidays are upon us, with all the excitement and the parties. As the Grinch says, “And Then! Oh, the noise! Noise! Noise! Noise! There’s one thing I hate! All the NOISE! NOISE! NOISE! NOISE!”

Now, I am no Grinch about the holidays, but prior to my tenure here at Melink I worked for nearly 10 years as an Environmental Health and Safety Manager within a large chemical facility, and there were various work areas which exceeded noise thresholds requiring hearing protection. It was LOUD. This is where I became cognoscente of NIOSH (National Institute for Occupational Safety and Health) standards for hearing conservation,

NIOSH states continued exposure to noise above 85 dBA (adjusted decibels) over time will cause hearing loss. The volume (dBA) and the length of exposure to the sound will tell you how harmful the noise is. In general, the louder the noise, the less time required before hearing loss will occur. According to the NIOSH, the maximum exposure time at 85 dBA is eight hours.

Although we may not be able to control the noise of the holiday party or the loud toys the children will receive on Christmas day, perhaps within the working environments of commercial kitchens we can make drastic improvements and reduce the overall noise level.

Studies have been conducted over the years and dependent on many variables such as the size of the kitchen spaces, the duration of peak activity, and other various factors the overall noise level at times approach or exceed the 85dBA level, sources show a typical restaurant operates at 80 dB, although this value does not trigger hearing protection, some restaurants are known to reach 110 dB at times which is the noise level of a jackhammer! Think of the last time you were at your favorite restaurant and seated near the kitchen entrance versus the opposite side of the room.

Demand control kitchen ventilation can help not just provide energy savings but also reduce the noise levels drastically, especially over an 8-hour timeframe for employees in the kitchen spaces. When researching kitchen exhaust fans one will find that the noise levels are reported as a “sone” which depending on the static pressure of the design the noise levels can vary. A sone is a unit of loudness, how loud a sound is perceived. Doubling the perceived loudness doubles the sone value. Within fan specs of kitchen exhaust fans manufacturers indicate the “Sones” level for example a 5hp kitchen exhaust fan has a sone level ranging from 16.5 to 26 sones dependent on duct design. Per the decibel level and sones conversion chart this is equivalent to around 68.3 to 74.9 dB!

Now considering utilizing a temperature and optic based demand control kitchen ventilation, such as Intelli-Hood, can reduce fan speeds by 30-45% average fan speed over a 24hr period consider the reduction of noise exposure this provides. It is not uncommon for customers post installation of a Melink Intelli-Hood system to recognize significant noise reduction, many times commenting that during food prep hours, although the fans are “turned on” they operate at a minimum speed and it sounds like they are not even operating!

Perhaps you are in a position of influence of the decision to retrofit Demand Control Kitchen Ventilation, or perhaps evaluating and analyzing the opportunity for a client. Remember that there is more savings than simply energy that can be considered when evaluating demand control kitchen ventilation.

Customer Experience – The Key Differentiator

Posted on by Lindsey Burbee

Good is no longer good enough! It seems it was only yesterday that every business claimed the key to winning customers was the quality of product or service they deliver. Here at Melink, we’re changing the game to focus on the customer experience! According to a Walker study, by the year 2020, customer experience will overtake price and product as the key brand differentiator. So, what is customer experience you ask? Customer experience is your customers’ perception of how the company treats them. These perceptions affect their behaviors and build memories and feelings, and may drive their loyalty. In other words, if they like you and continue to like you, they are going to do business with you and recommend you to the others. With customer experience being the new battlefield, companies are changing their approach, offerings, and business practices. Sales teams are working harder to learn their customers and their customer’s business, so they can create the “wow”. Hotel managers, restaurant chains, and even doctors’ offices are focused on creating an experience that knocks their customers socks off, instead of just standard practices.

These days, social media gives the consumer a lot of power and impact. There’s an instant feedback loop and the cluster of data starts to create the company’s reputation. For example, if you get on Amazon to buy a new bike for your son, you’re likely going to check the performance stars and the customer reviews. Any of those reviews can be the difference between you purchasing that bike and moving on to a different bike. If you’re looking for a surgeon and every website has them at 3 out of 5 stars, you’re likely going to move on to the next guy. He may be the best surgeon in the land, but his rude receptionist and office staff have poor bedside manner and make people miserable when they go in to see him. If you go to a fast-food burger joint, how likely is it that you’re going to write a positive Yelp review if you pull up to the drive thru, order your food, pay the correct amount, get the correct change and correct order, and you leave in a timely manner? Probably never! They didn’t go above and beyond and create the “wow”! If you want to improve the customer experience, there must be a “wow”! Recently I went through a drive thru myself and was caught off guard with my experience. When I pulled up it was raining. Normally I would get soaked reaching out to hand over the money. This time the cashier stuck an umbrella out the window, so I wouldn’t get drenched. Super small, super easy, but I was impressed! I’ve never seen it before in my time on this earth and he was focused on my experience! I did write a review and I tipped a drive-thru cashier for the first time!

Millennials are changing the game and companies need to embrace it. Sure, the entitlement is out of control, but the business practice changes are not all bad. If you’re focusing only on your product or service and not how your customer feels about the entire experience, you’re in trouble! Some of the large hotel companies are incentivizing their General Managers on customer experience and guest loyalty. The baby-boomers want to talk, interact, have face-to-face experiences with nice people. The millennials want to check-in swiftly to the hotel with no hiccups and have issues resolved quickly. Management needs to address all their consumer personas in a unique way to setup the individual customer experiences for success.

What happens if you fail to provide a positive customer experience? According to a recent study, 67% of customers mention bad experiences as a reason for churn and only 1 in 26 unhappy customers complain. That means companies not focused on the customer experience will lose customers well after it’s too late! Most of this is the result of what I refer to as “sales autopilot”. When you’re there trying to make it look like your product is perfect for them, without the data, you end up losing trust with them. Trust, brand and customer experience are all built on honesty. And honesty is knowing when your product won’t be a perfect fit for everyone. Therefore it’s so important to stop selling and start solving!

Since most companies will be expected to compete mainly on customer experience, organizations like Melink that focus on customer experience will stand out from the noise and win loyal customers over. One thing is for sure, if you want your customer to have an excellent customer experience and create a “wow” you must know your customers better than ever before! Here at Melink, my team and I are completing customer profiles and personas to improve individual experiences. Once you know your customers well enough, you can use that knowledge to personalize every interaction. Customers these days have more power and choice than ever before. Thus, we are responsible for understanding and acknowledging their needs. When people ask what we do, it shouldn’t be Test & Balance, Demand-Controlled Kitchen Ventilation (DCKV), Solar, or Geothermal, it should be creating the best customer experience in renewable and energy reduction markets for our customers!

Effects of dynamic air flow in kitchen environments and the importance of air balancing

Posted on by Lindsey Burbee
GROWING HOSPITALITY INDUSTRY:

As we all know, the hospitality industry is developing a lot these days. Owners are investing heavily into their hotels in order to globalize them and create unique destinations. This development is mainly due to the increase in international tourism and business travel driving the need to create different cuisine options. The multitude of cuisine options and equipment designs can have a significant impact on dynamic air flows and energy consumption.

AIR CONDITIONING IN KITCHEN:

In the hospitality industry, the focus is being given to the improvement of centralized kitchen air conditioning to ensure that the chefs working in the midst of heat are safe and comfortable. Even small-scale kitchens are focused on providing air conditioned kitchens now more than ever.

VENTILATION SYSTEMS OF OLD AND MODERN KITCHEN TRENDS:

In the earlier days, importance was generally given to extract and discharge of exhaust air alone. Whereas now, in trending commercial kitchen ventilation system, the following ventilation systems are present to do air balancing and bring comfort in the kitchen zone-wise:

  • HOT Kitchen Zone – When cooking appliances are present, exhaust air and fresh air (makeup air) systems will be present to extract thermal plumes and radiant heat.
  • COLD Kitchen Zone – The preparation area and refrigeration area have conditioned air and return air systems present.
  • Dish Washing Zone – With the heavy output of steam, systems are in place to extract the steam immediately and recycle makeup air through the area.
DYNAMIC AIR FLOW AND IMPORTANCE OF AIR BALANCING:

Dynamic Air flow occurs due to the following reasons:

  • The heat load is not calculated per the equipment specifications.
  • Selection of improper kitchen equipment that leads to variation in heat load. Examples include wrong burner design, equipment without proper insulation, wrong electrical appliance selections.
  • High air draft transfer through doors/service door/high velocity diffusers
  • Equipment placement changes. An example would be changing the positions of equipment against the original kitchen design.
  • Extraction hood is undersized as it affects suction.
  • Increase in the number of people in the building.
  • Improper selection of exhaust fan, make up air fan, and exhaust & make up air ducting system

As a result of the air draft energy savings plummet!

ILLUSTRATION:

Something that I have observed quite often, is the high draft air transfer through different doors. This is a primary cause of dynamic air flow. Optimal kitchen design would allow the natural hot air from cooking to go undisturbed.

Service door opening affecting dynamic air flow.Service door opening allowing natural air flow.

In the 1st image above, the service door is open so the hot air that is rising is disturbed due to the high draft air from the next room, creating turbulence. The high draft should be balanced to decrease energy loss.

In the 2nd image above, the service door is closed allowing the hot air to rise without disturbance.

When there is a turbulence, the temperature in the kitchen will quickly rise as the extraction does not happen correctly and it combines with exhaust and supply air. Therefore, this makes the kitchen staff become very uncomfortable, air conditioning is increased to cool down the kitchen, and the exhaust is ramped up. Because of this, extra energy is used when it could have been avoided. If this is constantly being repeated, it will result in discomfort, hygiene will be affected, and there will be a huge loss of energy.

As you are designing your next kitchen, be cognizant of the fact that kitchen design impacts more than meets the eye. Kitchen efficiency goes beyond the layout that makes it easiest for your staff to work in, it entails energy usage and safety as well.

Energy Upgrades In Prison Facilities

Posted on by Lindsey Burbee

It is no secret that many prison facilities are outdated, understaffed, and overcrowded. Sadly, these problems can all be traced back to being underfunded.  With large pressing problems like this, it makes the idea of certain energy upgrades in prisons like installing a new LED light fixture or flow meters on hydronic components seem miniscule while the impact could greatly help the underlying problems.

The Problem – “There’s only three ways to spend the taxpayer’s hard-earned when it comes to prisons.More walls. More bars. More guards.” – Shawshank Redemption

Although it may seem like this statement is true, most of the costs associated with state run facilities is lumped into personnel costs within the operating expenses. Salaries, overtime, and benefits comprised over 66% of the cost to run state facilities. Additionally, an average of 17% of funding across the nation went to facility maintenance, prison programs, debt services, and legal judgments. This data tells us that most of the cost of prisons goes unsurprisingly, to operating costs. The operating costs can range from your day to day maintenance, to the utility bills, to providing food and supervision for inmates. The average salary of correctional officers in the US is $37,717 per year, so adding even one more CO to help an understaffed facility can have a substantial effect on the budget.

The Solution – Lower Operating Costs

However, the problem with initiatives and projects to reduce operating costs, is that they are met with red tape. Every state has their own nuances but all capital expenditures go through lengthy processes to determine what is necessary and when. So, how can a facility take control of own their operating costs without the capital expenditures? For multiple energy efficiency and water conservation measures in one project, energy service performance contracts can be a powerful tool if managed properly. These projects can range from low flow facets, to LED lighting, to control systems, to mechanical system replacements.

However, some states have different laws regarding performance contracts so if this route is not an option, individual conservation measures can be implemented creatively. For example, demand control kitchen ventilation is a relatively low-cost measure with a high ROI, making it a versatile measure for performance contracts and as a standalone facility upgrade. By slowing the kitchen exhaust fans in relation to the cooking activity, savings are realized through fan energy reduction and reduction of conditioned air that is wasted. In many cases there are even lease options among other financing routes that could make your project cash flow positive from the first month of implementation! With the saved money that would be going toward the electric bill, the extra cash can be used for other costs across the facility.

Putting Your Savings to Work

Implementing energy efficiency products like DCKV can save you money, but how much are we talking? For a large facility, let’s say you save $30,000 a year on your electric and conditioned air. In North Carolina, that is enough to cover the cost of one inmate for 335 days or 335 inmates for one day. In Florida, that is enough to cover the costs to house and supervise one inmate for 561 days or the salary of an entry level Correctional Officer. Why is Florida’s cost per inmate so much less than North Carolina? The state completes a lot of ESCO projects, so overall, their facilities are more efficient.

In the end implementing energy efficient technologies and practices, not only helps your prison run more efficiently, it reduces operating expenses so your cash can be used where it makes a  bigger impact; paying for more CO’s, building upgrades, and additional programs to reduce the recidivism rate.

Higher Education Taking Action Against Climate Change

Posted on by Lindsey Burbee

Climate change has been a hot topic recently, and higher education is taking note and taking action. While hundreds of schools have already made pledges to increase sustainability across their campus, 13 schools are taking the lead and taking it a step farther. At this year’s 2018 Higher Education Climate Leadership Summit, 13 North American research universities launched the University Climate Change Coalition, or UC3, a group committed to implementing green initiatives into their own campuses and leveraging their research and experience to help others do the same. For over a decade, these universities have been researching innovative ways to reduce energy consumption, and educating students on how to combat climate challenges that are quickly approaching, but now they taking it a step further to spread this expertise to accelerate change through all of higher education.

Colleges and Universities that have committed to take action on climate change
Colleges and Universities that have committed to take action on climate change. Source: Secondnature.org

As the first school listed on the Campus Carbon Neutrality commitment, Cornell University paved the way. They have made continual efforts to implement Energy Conservation Initiatives (ECI), committing $33M towards ECI’s over a recent 5-year period. The Ohio State University established goals to be carbon neutral by 2050 and to reduce total campus building energy consumption by 25%. Both of these schools have found ways to lessen their carbon footprint by implementing various sustainability practices and products campus wide. Reducing energy use in existing buildings have been an ongoing initiative by both universities focusing on modernizing building envelopes, implementation of building automation and control systems, heat recovery and lighting systems. Cornell states projects they’ve implemented to date have had a return on investment of five to seven years.

Intelli-Hood controls at Kennedy Center at The Ohio State University.
Intelli-Hood controls at Kennedy Center at The Ohio State University. Source: osu.edu

A place that can often be overlooked, but has a great impact, is the ventilation system in campus kitchens. With the demand of long hours to accommodate various student schedules, and high volume because of the dense population, campus kitchens tend to run a majority of the day. Depending where the university is located, various local and state codes may require fans to operate 24/7 if the site utilizes gas pilots on kitchen equipment which remain on overnight. The HVAC systems account for 29% of the energy consumption of a food service area, with up to 75% of this load able to be attributed to the commercial kitchen ventilation system.

Melink is the innovator of Demand Control Kitchen Ventilation (DCKV) with the Intelli-Hood® system. Both Cornell University and The Ohio State University found the benefit of utilizing dckv systems across a majority of their kitchens. Using Intelli-Hood®, systems operate at a lower overall fans speed average. In an average day, the Melink Intelli-Hood system can recognize up to a 45% reduction in fan speeds equivalent to approximately 83% electrical fan energy savings. Additionally, this reduced operation results in a decrease of load demand of surrounding HVAC equipment providing additional conditioned air savings that can be recognized.

Melink Corporation Awarded GSA Certification To Work Directly With U.S. Government Agencies

Posted on by Lindsey Burbee

CINCINNATI, OH – Melink Corporation, a global provider of energy efficiency and renewable energy solutions, just announced it has been awarded a General Services Administration (GSA) Multiple Award Services 056 Contract. This 5-year contract will enable Melink Corporation to partner directly with U.S. government agencies to deliver Intelli-Hood®, their proprietary kitchen ventilation controls, for increased energy efficiency in cooking operations. .

The US Government has been making strides towards sustainability, adopting more products and services that will improve energy usage in their buildings. The US Army compiled research on exhaust air and makeup air hood optimization, showing both the energy and financial savings of using kitchen ventilation controls to regulate the fan speed found here. Melink Corp has worked on numerous US Government projects to date, with agencies such as DOD, DOE, VA Healthcare, GSA and others with cooking operations. This certification will make it easier for the government to implement Intelli-Hood into their projects and continue to make energy efficiency a priority.

“Melink is optimistic that this GSA contract award will increase opportunities for the Government to create more sustainable operations and eliminate barriers to purchasing our Intelli-Hood controls.” said Randy Miles, VP & General Manager of Intelli-Hood.

Since inventing the first demand control kitchen ventilation (DCKV) system over 30 years ago, Melink has created significant energy savings in over 30,000 hoods across the globe. Compatible with all manufacturers, Intelli-Hood can be used in both new construction and retro-fit projects. Unique dual sensors with self-learning algorithms ensure the safest environment and the highest energy savings.

To learn more about Intelli-Hood please visit Intellihood.com.

­­About Melink Corporation: A global provider of energy efficiency and renewable energy  solutions for the commercial building industry. With four business units and a singular energy mission, we help companies save energy, increase profits and make the world a more sustainable place.

Tax Reform Bill Windfall – Reinvest In Efficient Operations for the Long Haul

Posted on by Lindsey Burbee

Your profits just increased 14%, what are you going to do with all that cash???

Large US companies are on tap to reap the benefits of a 21% corporate tax, down from 35% (not factoring in Effective Tax Rates), under the new federal tax bill and there are many theories on where the money will go. Several companies have already given out bonuses, announced minimum wage increases, increased 401k matches, stock buyback programs, and increased shareholder dividends.  While all these are great short term shots in the arm during a time of robust economic growth, I’d like to argue that the smart play would be to invest in operational and energy efficiencies to prepare for an economic pullback and eventual awakening of the bears. Fortunately for many companies this recent time of growth has come over a period in which energy prices have been relatively flat ,or declining, resulting in reduced expenses and increased profit margins.  The rates for natural gas are slightly above 10-year lows and electrical pricing has shown a modest increase of 3% on average across the United States (https://www.electricchoice.com/electricity-prices-by-state). It would be short sided and foolish to think these rates will remain near basement levels for the long-term as geo-political flash points or natural disasters could lead to sharp increases in rates. Unless businesses invest in efficiency now they’re not going to be able to react fast enough to counter the cost of an increase should an event occur or prices quickly rebound.

 

 

Source: Market Insider Even at today’s rates most mainstream energy conservation measures (ECMs) fall at, or under, the industry benchmark of a 3-year Simple Payback Period, or ~33% ROI.  Despite the bull market running wild, it can be difficult to find a relatively risk free investment that will yield a consistent 33% return. Therefore, the smart money will point toward investing in efficiency projects now in favorable capital markets. Aside from some newly minted Bitcoin millionaires, my bet is that most “Main Street Americans” would rest easy at night knowing their investment will yield a consistent return north of 30%. There’s likely not one silver bullet technology that will drastically improve operational efficiencies, however there are many proven low risk investments such as LED lighting, HVAC upgrades, Building Management Systems, and smart building controls that can have an impact on many areas of your operations. This multi-faceted approach to energy efficiency will build a more robust infrastructure and predictable energy usage profile for business operator for when the economy eventually pulls back and rates increase. I’m not an economist, investment banker, trader, or tax analyst, but I do manage a global business and believe in growth reinvestment balanced with the protection of downside risk.  So, if you’re a building owner, asset manager, facility manager or responsible for the financial performance of your business; I urge you to mitigate your future operations cost risk and invest in efficiency today.