Manufacturers across the West Midlands are facing a familiar challenge. Energy prices remain unpredictable, and there is growing pressure to reduce carbon emissions while keeping production on track.

Balancing these priorities can be difficult, especially when the focus is on maintaining performance and competitiveness in a demanding market. However, many businesses are now realising that the path to lower emissions also leads to lower costs.

The latest phase of the government’s Energy Savings Opportunity Scheme, known as ESOS Phase 4, is now underway. For manufacturers, this is more than another piece of regulation. It is an opportunity to find waste, save money and build resilience for the future.

Seeing the Opportunity in Compliance

ESOS requires large organisations to complete detailed energy audits every four years, reviewing how energy is used in buildings, transport and industrial processes. For many manufacturers, these audits have revealed savings that would otherwise have gone unnoticed.

Work carried out by Elemental, an energy and sustainability consultancy based in the Midlands, shows that acting on audit findings can deliver savings of 20 to 30 per cent. In one recent example, a regional manufacturer achieved more than £80,000 in annual savings by improving the efficiency of compressed air systems and upgrading lighting and controls.

These kinds of changes often recover their costs within the first year of operation and continue to deliver savings well into the future.

Why Acting Early Matters

The deadline for ESOS Phase 4 reporting is approaching in 2026, but the most forward-thinking manufacturers are already getting started. Beginning the process early gives businesses time to gather accurate data, plan investment, and prioritise actions that offer the quickest financial returns.

Starting now also allows organisations to explore flexible funding options, including lease agreements based on the savings achieved from projects such as solar installations or advanced metering and monitoring systems. This spreads the cost and ensures that upgrades improve cash flow rather than restrict it.

Those who prepare early are also better placed to meet related obligations such as SECR reporting, customer supply chain requests and wider carbon management planning.

Data That Drives Decisions

Energy data is becoming one of the most valuable tools for manufacturers who want to take control of their costs. Through real-time monitoring and sub-metering, it is possible to pinpoint when and where energy is being used inefficiently.

For example, spotting machinery that continues to run outside production hours or identifying unusually high overnight consumption can reveal quick wins that reduce waste without affecting productivity.

Elemental has worked with a range of manufacturing clients to put this data to work. Once accurate information is available, the path to improvement becomes clear. Small adjustments to processes and equipment can quickly translate into lower bills, reduced carbon output and improved operational resilience.

A Regional Shift Towards Smarter Manufacturing

The Black Country and the wider West Midlands have a long tradition of innovation and industry leadership. That same spirit is now being applied to energy and sustainability.

Many local manufacturers are discovering that efficiency is not only good for the environment but also for business performance. Those who combine compliance with long-term planning are improving their financial results, enhancing their ESG standing and strengthening relationships with clients and partners.

With ESOS Phase 4 now underway, this is the right moment for manufacturers to take stock of their energy performance. Every factory, warehouse or process line holds opportunities to save money and cut emissions once the data is properly understood. The sooner this work begins, the sooner the benefits can be realised.

Elemental works with manufacturers across the Midlands to turn compliance into measurable results. Our team helps organisations meet ESOS and SECR obligations, manage carbon effectively and implement targeted efficiency projects that deliver lasting returns. 

To discuss how we can support your business, contact us at enquiries@elemental.org.uk or visit www.elemental.org.uk/compliance.