The castings and machined components supplier is focusing on energy efficiency to capitalise on their £15m increase in sales.
Shield Group, which operates from six different manufacturing divisions across Coventry, Leicestershire, Northampton and Oldham, has just hit £80m for the first time in its 69-year history after securing new work to supply lightweight parts for the off-highway, automotive and power generation markets.
The firm has increased its workforce from 460 in 2016 to its current 670 staff, plans further investments across all of its manufacturing facilities and is also edging nearer to another acquisition.
Faced with major increases in production, and needing to manage energy consumption and utilities costs so it could manage the surge in volumes and create a platform for attracting even more work, it turned to Control Energy Costs (CEC) to provide a complete audit of the utility accounts and a review of how it could reduce its carbon footprint whilst also cutting spend.
The utility management, procurement and support services specialists revealed a number of ways the firm could reduce energy expenditure, by adopting new working practices, agreeing fixed utility contracts and introducing more efficient manufacturing processes.
“When you are growing at the rate we are, one of the biggest costs to the business will be the amount of energy we use,” explained Chris Shield, group managing director.
“We used to look after this in-house, but recognised the need to get an expert in to take a holistic overview to all of our outputs…it wasn’t just a case of reviewing it though, we wanted someone who would be pro-active and come up with solutions that would give us performance and cost improvements.”
He continued: “This is exactly what CEC did, with Chris Ellis leading a team of specialists that have successfully reduced the amount of energy we use by 15% - a significant achievement when you consider how energy intensive our businesses are.
“They understand how to negotiate the best contracts, can advise on the schemes out there that give you support and have a fantastic overview of legislation so we know all of our activity is compliant.”
One of the recent exercises completed by Control Energy Costs has been to reduce Shield Group’s Green Tax liability, resulting in six figure savings per annum.
Other improvements have been the installation of LED lighting across all of its six sites, investment in a new form of melting and supporting training to help employees understand the role they have to play.
CEC’s Chris Ellis added his support: “Chris and the team have done a fantastic job in growing the Group and it is fast becoming one of the UK’s best manufacturing success stories.
“When you are expanding quickly, it can sometimes be easy to lose sight of non-core activities, which is where we come in. Working with all levels of Shield’s workforce, we were able to put in place a blueprint for not just saving energy, but also making operations more efficient and identifying Government support that makes introducing these processes easier.”
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