Manufacturing is one of the most energy-intensive business sectors in the UK, with factories using electricity for machinery, motors, robotics, refrigeration, compressed air and lighting, while gas is used for space heating, process heating, drying, steam production, curing and hot water. Monthly energy consumption and cost varies significantly depending on the type of manufacturing, production volume, equipment age, building condition and operating hours.
Understanding energy usage helps manufacturers improve efficiency, manage cost, select suitable tariffs and meet net-zero compliance standards for their manufacturing business.
Typical energy usage by manufacturing business size
| Business type | Electricity (kWh/month) | Gas (kWh/month) |
|---|---|---|
| Small light manufacturing (assembly, parts, packaging) | 12,000–25,000 | 4,000–10,000 |
| Medium manufacturing facility (engineering, textiles, plastics) | 30,000–60,000 | 12,000–30,000 |
| Large industrial manufacturing (metalwork, food processing, pharmaceuticals) | 70,000–140,000+ | 35,000–80,000+ |
Heavy process manufacturing (chemicals, foundries, steelwork, food processing) sits at the top end due to process heating, drying, curing, melting or refrigeration demands.
Estimated monthly energy cost ranges
A medium manufacturing business usually spends between £8,940 and £18,300 per month on combined electricity and gas, depending on production schedules, equipment type, insulation and heating systems.
| Business size | Electricity cost | Gas cost | Total monthly energy cost |
|---|---|---|---|
| Small | £3,210–£6,650 | £360–£900 | £3,570–£7,550 |
| Medium | £7,800–£15,600 | £1,140–£2,700 | £8,940–£18,300 |
| Large | £18,200–£36,400+ | £3,150–£7,200+ | £21,350–£43,600+ |
These include standing charges. Sites running 24/7 shift operations, kilns or curing ovens often exceed these values.
Which manufacturing processes use the most energy?
| Process or equipment | Electricity (kWh/month) | Gas (kWh/month) |
|---|---|---|
| Process heating (boilers, kilns, furnaces) | 500–8,000 | 3,000–40,000 |
| Compressed air systems | 1,500–8,000 | N/A |
| CNC machines, robotics and conveyors | 1,000–6,000 | N/A |
| Refrigeration, cooling and cold storage | 800–10,000 | N/A |
| Ventilation and dust extraction | 600–5,000 | 200–800 |
| Space heating for workshops and production halls | 400–2,000 | 4,000–20,000 |
| Lighting for large manufacturing floors | 800–5,500 | N/A |
| Office, welfare and canteen areas | 300–1,200 | 200–500 |
Compressed air, process heating, curing and refrigeration are typically the highest consumers.
Key factors affecting manufacturing energy bills
Production intensity
High throughput or continuous-run production lines increase energy demand dramatically.
Process heating
Heating systems, furnaces and curing machines can consume 50% or more of total energy in heavy manufacturing sectors.
Compressed air inefficiency
Leaks can waste 20% to 30% of compressor energy, costing thousands annually if not maintained.
Heating large open spaces
High ceilings, open shutter doors and uninsulated factory walls lead to high winter gas demand.
Automation and climate control
Advanced robotics, air-conditioned clean rooms and temperature-controlled facilities increase electricity use.
Seasonal impact on manufacturing energy costs
| Season | Typical change in energy usage | Key reason |
|---|---|---|
| Winter | +25% to +55% | High gas usage for space heating |
| Summer | +10% to +20% | Higher demand for cooling and ventilation |
| Shoulder seasons | Baseline | Minimal heating and cooling demand |
How to reduce energy cost in manufacturing businesses
| Strategy | Saving potential | Notes |
|---|---|---|
| Fix compressed air leaks and optimise pressure | 15–30% | Major opportunity in pneumatic plants |
| Use LED lighting with motion controls | 10–25% | Effective in large production spaces |
| Install heat recovery from exhaust or machinery | 10–30% | Reuses process heat for space or water heating |
| Improve insulation and door sealing | 20–35% | Especially beneficial for workshops and warehouses |
| Use smart timing on heating and HVAC | 10–15% | Avoids unnecessary off-hour energy use |
| Switch to fixed or flexible business tariff | 8–15% | Improves cost predictability and control |
Why energy management is critical in manufacturing
Energy is often one of the top three operating costs in manufacturing, alongside labour and raw materials. Energy can represent 10% to 30% of total monthly operating expenditure, and over 40% in energy-intensive sectors such as metals, plastics, chemicals and food processing.
Efficient energy usage improves profitability, competitiveness, sustainability and compliance with carbon reduction targets.
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FAQ
A medium manufacturing business usually spends between £8,940 and £18,300 per month on combined electricity and gas, depending on production schedules, equipment type, insulation and heating systems.
A small manufacturing operation typically uses between 12,000 and 25,000 kWh of electricity per month. At an average rate of 26p per kWh, this results in a monthly electricity cost of roughly £3,120 to £6,500, not including standing charges or gas usage.
It depends on the production type. Businesses using furnaces, kilns, curing ovens or steam boilers tend to spend more on gas. Those using robotics, CNC machines, compressed air, lighting and refrigeration often have higher electricity bills.
Process heating (kilns, furnaces, curing and drying), compressed air systems and refrigeration are among the highest energy users. Compressed air alone can account for up to 30% of electricity consumption in pneumatic facilities.
In winter, energy bills can rise by 25% to 55% due to increased demand for space heating. Factories with large shutters, tall ceilings and poor insulation experience the biggest seasonal cost increases.
Yes. Energy bills can be reduced by 10% to 25% through low-cost actions like sealing doors, fixing air compressor leaks, using LED lighting, installing smart timers and improving insulation, without replacing major machinery.
Large industrial manufacturing facilities typically consume 70,000 to 140,000+ kWh of electricity and 35,000 to 80,000+ kWh of gas monthly. Total energy costs often exceed £21,000 per month, depending on heat and production demands.
Compressed air is one of the least efficient forms of energy. Air leaks, high pressure settings and poorly maintained compressor systems can waste up to 30% of compressor energy, costing thousands each year.
Energy typically makes up 10% to 30% of operating costs in manufacturing. In energy-intensive sectors like plastics, chemicals or metals, it can exceed 40% of total expenditure.
Yes. Fixed contracts help manufacturers manage budget certainty and protect against price volatility. High-energy-use businesses often save 8% to 15% annually by switching to fixed or tailored industry tariffs.