In today’s volatile economic landscape, manufacturers face many challenges—from shifting trade policies and supply chain disruptions to labor shortages and rising material costs.
The threat of tariffs from the Trump administration is expected to disrupt the deeply integrated supply chains between the two nations, leading to increased production costs, potential job losses, and economic uncertainty for Canadian businesses, especially manufacturers.
The impacts could be far-reaching. General Motors’ CFO, Paul Jacobson, stated that if these tariffs become permanent, GM might need to reconsider the location of its plants.
Manufacturers must focus on the factors they can control when operating in an environment with many uncertainties. One of the most impactful areas under their control is Energy management.
Energy is one of the biggest costs for manufacturers, and controlling energy costs with an energy management solution can offer much-needed stability. In addition to cutting costs, firms can increase their resilience to changes in the market by putting strategic energy management techniques into place.
Energy Management Solutions Matter Now More Than Ever
Energy costs continue to rise. For example, in January 2025, we saw the highest Hourly Ontario Energy Prices (HOEP) on record since 2014, and in February 2025, this is expected to increase even more. Luckily, these costs can be controlled with a well-managed energy strategy and some technological tools such as software and IoT.
A well-managed energy strategy can:
- Reduce operational costs without sacrificing productivity
- Improve profitability and financial stability in uncertain times
- Support sustainability initiatives and regulatory compliance
- Enhance overall efficiency by identifying and eliminating waste
Key Strategies to Take Control of Energy Costs
To remain competitive, manufacturers should adopt a strategic approach to energy management.
Here’s how:
1. Implement Real-Time Energy Monitoring
You can’t measure what you don’t monitor. Real-time visibility unlocks energy-saving opportunities. Tracking usage patterns makes it possible to identify inefficiencies and take corrective actions to lower energy waste.
2. Grid Program Participation
Grid programs such as peak shaving and capacity auction programs allow manufacturers to shift or reduce energy usage during peak times, helping to lower electricity bills while also contributing to grid stability. Depending on your location, some ISO’s will write cheques to facilities for curtailing.
3. Upgrade Equipment and Processes for Energy Efficiency
Energy-efficient machinery and optimized manufacturing processes can significantly reduce consumption. Simple upgrades such as LED lighting, high-efficiency motors, and automated shutdown systems can lead to substantial savings. Additionally, investing in energy-efficient cooling and heating systems can mitigate high operational costs.
4. Use AI and IoT for Smarter Energy Decisions
Technology is transforming energy management. AI-driven solutions analyze real-time data and optimize energy usage without manual intervention. By integrating IoT sensors and automation, manufacturers can make data-backed decisions that improve efficiency and lower costs.
5. Leverage Renewable Energy and On-Site Generation
For facilities looking to reduce reliance on volatile energy markets, integrating renewable energy sources such as solar or batteries can provide long-term cost benefits. Many manufacturers are exploring Power Purchase Agreements (PPAs) and on-site energy generation to enhance resilience and cost predictability.
6. Choose a technology partner
You’re falling behind if you’re still managing energy data collection and analysis manually. Energy Management software speeds up this process, making the necessary information automated at your fingertips so you can make smarter decisions. Energy management software makes grid participation easier, maximizing your returns. Plus, the automated data necessary for ESG reporting is included.
Taking Control in Uncertain Times
While political uncertainties are unavoidable, manufacturers don’t have to sit on the sidelines. Proactively managing energy usage is a powerful way to strengthen financial resilience, reduce costs, and maintain operational stability. Manufacturers can turn energy management into a strategic advantage by leveraging advanced energy monitoring, participating in demand response, investing in efficiency, and embracing AI-driven solutions.
At Edgecom Energy, we specialize in helping manufacturers outsmart rising energy costs. Whether through real-time monitoring, peak demand management, or AI-powered optimizations, we provide the tools needed to navigate uncertainty with confidence.
Now is the time to shift the focus to what can be controlled—starting with energy. Reach out to learn how we can help your facility reduce costs and improve efficiency, no matter the market conditions.
