Running a business means understanding and managing the energy consumption of your warehouse operations. By lowering energy usage, you can significantly cut expenses while making your business more eco-friendly and ethical.

Energy Consumption in Buildings: The energy consumption of buildings is a critical factor for the profitability of companies, accounting for nearly 50% of their overall expenses (Our World in Data). This high energy consumption can be the leading cost for many businesses. Lowering energy consumption is crucial not only for reducing overhead expenses but also for enhancing sustainability and eco-friendly operations. In today’s age, managing energy consumption is a massive challenge that requires effective measures.

Warehousing Costs in the U.S.: In the United States, warehousing costs can account for almost 10% of a company’s revenue. Many companies face high costs for warehouses and storage facilities, primarily due to significant energy consumption (Our World in Data) (IEA). Whether dealing with refrigerated or non-refrigerated warehouses, energy costs can drain revenue and hinder profitability. Effective energy management can mitigate these high costs and improve business efficiency.

Energy Consumption of Non-Refrigerated Warehouses: An average non-refrigerated warehouse consumes approximately 6.1 kilowatt-hours (kWh) of electrical energy per square foot each year (Our World in Data). Additionally, these warehouses consume about 13,400 Btu of natural gas per square foot annually (Our World in Data). This high energy consumption necessitates finding ways to lower usage to reduce costs and environmental impact.

Energy Consumption of Refrigerated Warehouses: The electrical energy consumption is even higher than 6.1 kilowatt-hours (kWh) for warehouses that are refrigerated. Compared to a non-refrigerated warehouse, a refrigerated warehouse consumes significantly more electrical energy, leading to higher expenses and a larger environmental footprint (Our World in Data) (KPMG).

Refrigeration in Warehouses: When it comes to refrigerated warehouses, refrigeration accounts for 60% of the electricity used. Unlike non-refrigerated warehouses, where lighting and heating take up most of the electrical energy, refrigeration is the primary energy consumer in refrigerated warehouses. To keep energy consumption rates low and manage expenses better, businesses need to find more sustainable and affordable alternatives, which can also make operations more environment-friendly (Our World in Data) (KPMG).

Heating and Lighting: Heating and lighting are responsible for 76% of the total energy consumption in warehouses (IEA) (Our World in Data). Proper lighting and heating are essential, but businesses can explore energy-efficient alternatives to reduce consumption. These improvements can significantly cut costs and contribute to sustainability efforts.

Computers and Ventilation: Computers and technology are integral to modern warehouses, accounting for 6% of the electrical energy used in non-refrigerated warehouses. Ventilation systems consume about 5% of the electrical energy (IEA) (IEA). While these percentages are relatively small, optimizing energy use in these areas can still contribute to overall energy savings and efficiency.

Cooling and Refrigeration: Cooling systems account for 14% of the electrical energy consumption in non-refrigerated warehouses (Our World in Data) (IEA). Even non-refrigerated warehouses often have small refrigerated sections, which consume about 6% of their total electrical energy. Finding alternatives to electrical energy for cooling operations can be beneficial, but the importance of maintaining the appropriate temperature for stored goods cannot be overlooked.

Natural Gas for Heating: Approximately 87% of the natural gas used in warehouses is for heating purposes (IEA) (KPMG). Exploring alternative heating methods can help reduce natural gas consumption and associated costs. This shift can also support environmental sustainability by lowering reliance on fossil fuels.
Overall Energy Costs: Overall, energy costs account for roughly 15% of warehouse overhead expenses (KPMG) (IEA). Managing these costs is challenging, but reducing energy consumption can significantly lower overhead expenses, saving money and resources.