Australian manufacturers should prioritise tackling energy waste and strengthening operational fundamentals before pursuing expensive new technologies or aggressive net-zero targets, according to DETA Consulting.
The Australian and New Zealand engineering and energy advisory firm said many manufacturing and commercial operators could achieve substantial cost and emissions reductions by focusing first on efficiency, maintenance and control of existing systems rather than immediately investing in new solutions.
DETA Consulting managing director Jonathan Pooch said the challenge was not a lack of ambition but the order in which businesses pursue decarbonisation.
“Too many organisations chase shiny technology or public net-zero commitments without fixing the basics,” Pooch said. “It’s like worrying about the hot dog when you don’t have the bread yet.”
He added that site assessments often reveal 20 per cent to 30 per cent potential energy savings through improved scheduling, data review and system optimisation.
“Many manufacturing and commercial sites are leaking value every day through inefficient scheduling, poor controls and neglected maintenance,” he said.
A recent survey by CommBank found 89 per cent of SMEs reported higher business costs over the past year, with utilities identified as the largest contributor for 66 per cent of businesses.
Data from Energy Consumers Australia also showed small business electricity bills rose about eight per cent nationally over the past year, with some states recording increases exceeding 20 per cent.
Pooch said energy is often not the largest operating cost but is usually one of the easiest to reduce without disrupting production. “You are not cutting staff or ingredients. You are stripping out waste,” he said.
The company cited a project with Cheetham Salt Australia, the country’s largest producer and refiner of solar salt, where an energy audit and carbon roadmap identified opportunities to cut about 4,033 tonnes of CO2e annually — a 96 per cent reduction — with expected financial payback within one to three years.
Cheetham Salt group sustainability coordinator Kshitija Katkar said the work helped provide clearer visibility of energy use. “We now have a comprehensive understanding of our energy consumption and a roadmap to implement sustainable solutions across energy and carbon,” she said.
Industry analysis from DETA suggests manufacturers could typically lower energy use by 20 per cent to 30 per cent through relatively simple operational improvements before investing in new technologies.
Recommended measures include stopping unnecessary equipment operation, addressing leaks and maintenance issues in compressed air and pumping systems, and strengthening controls over when high-energy processes run.
Once efficiency gains are realised, businesses may be better positioned to invest in lower-emissions technologies such as heat pumps, electrified process heat, renewable energy procurement or long-term power purchase agreements.
“If you unlock 25% savings through efficiency, that cash flow can help fund the next stage,” Pooch said. “The mistake is trying to fund major technology shifts before you have stabilised the business case.”
Pooch said cultural factors can also slow progress, noting that engineering teams are often focused on production targets rather than energy inputs. He said the knowledge gap creates opportunities for savings through better monitoring and analysis.
“In a volatile energy market, sustainability only works if it is financially sustainable,” he said. “Fix what you have first. Deliver measurable savings. Then scale into the next phase of decarbonisation with confidence.”
