Unique Challenges for Industrial & Manufacturing
The management of energy for companies in the industrial/manufacturing sector typically falls to a CFO, a “Building and Grounds/Facilities” department, or more commonly an engineer who was delegated the responsibility. Having the proper expertise to adequately understand the highly complex energy commodity market, along with all of the industry specific contract language, deal structures, and processes pose a significant challenge to staff that is already spread thin with managing all of the other operations of the plant.
The sheer volume of energy consumed by an industrial or manufacturing client can pose a significant challenge to properly managing your accounts. Even very small changes to your energy rate can be significantly magnified on the bottom line of a financial statement.
Due to the large energy use, the lure of special and non-typical contract structures offered by energy suppliers can, on the surface, seem like a good thing. The problem is that many of these contract structures offer a lower rate at the expense of shifting market risk to you through many hidden and non-apparent ways. This risk can far outweigh any benefit you think you are getting in your upfront pricing.
With energy commodities, there are very good times to transact in the market cycle, and very bad times to transact. Simply transacting when your existing contract is nearly over puts your business at risk, because the market may be at a very bad entry point, causing you to lock in at inflated prices.
How We Can Help
- We provide a single point of contact that gives you access to our entire team of energy professionals. We make sure NOTHING is missed, and we make sure everything is done according to “Best Practices” for the industry.
- Our staff is heavily weighted toward technical professionals, such as engineers and quantitative analysts. This is especially important for Industrial & Manufacturing clients. We are uniquely qualified to do the analysis necessary to make sure that you are not taking on unnecessary or unexpected market risk.
- We are available for onsite meetings, as necessary, to support our recommendations and provide insight into the energy markets.
- We provide market updates and recommendations as to exactly WHEN your next contract should be signed, so that you can maximize your savings.
- We understand that in the Industrial and Manufacturing world, there are many special projects that will come up, such as building renovations, construction of new buildings, and even on-site generation projects. The energy aspect of these projects can be very important. As a client of KEYTEX Energy, we make our entire staff available to support you as these projects unfold.