The member is a worldwide manufacturer and marketer of cooling towers, closed circuit coolers, evaporative condensers, hybrid wet/dry and ice thermal storage products with manufacturing facilities in Tennessee, California, and Delaware. 

Their custom-built solutions include:

  • HVAC (for data centers, healthcare facilities, schools, office buildings, hotels and resorts); 
  • Refrigeration (for cold storage facilities, meat and dairy processing plants, ice rinks, supermarkets, and warehouses); 
  • Industrial Power & process (used by factories processing primary metals, chemicals and petrochemicals, pulp and paper, oil and gas, and hydrogen) 
  • Manufacturing (applications such as EV batteries, automotive transportation, textiles, air compressors, building materials, and aerospace)

The company did not have a centralized approach to handling its energy spend; each facility was handling energy costs on their own. Several locations had existing energy contracts in place with varying solutions and term lengths.

The company engaged Procure Analytics Energy Management GPO partner, Tradition Energy, to review its costs and energy procurement strategy.

Tradition’s initial review of the members energy costs saw several locations in the Mid Atlantic had put variable contracts in place that were about to expire. After Tradition’s initial price discovery work Tradition found pricing, with the same variable strategy that the individual sites opted for on their own, at significantly reduced rates. 

Another location for the member did not have any strategy in place and was floating on the default utility rate in Northern California. 

Running concurrently with Tradition’s price discovery work the member was alerted to opportunities in multiple markets for bill credits offered by the local utility. 

Tradition’s proactive approach helped the member reduce energy costs immediately, with the following impact: 

  • Maryland natural gas saw a 70% decrease 
  • Delaware natural gas saw a 96% decrease 
  • California natural gas saw a 26% decrease 

Consolidated purchasing procedures and increased efficiency has enabled proactive account management and the identification of new savings opportunities for this PA member .