Program puts stimulus money to work for manufacturers.
Press Release Summary:
Designed by National Association of Lighting Management Companies, Program for Energy Efficiency through Responsible Stimulus aims to get government to direct $16 billion of $780 billion to program that supports energy efficiency retrofits. According to Dr. Chris Kuehl, economic analyst for FMA, this leads to win-win situation since companies save money by reducing energy costs, reduce contributions to emissions, and create jobs for firms that do retrofit work and provide ongoing maintenance.
Original Press Release:
One Program Putting Stimulus Money to Work for Manufacturers
ONE PROGRAM 'PEERLESS' IN PUTTING STIMULUS MONEY TO WORK FOR MANUFACTURERS, SAYS INDUSTRY ECONOMIST
PEERS Directs Funds to Energy Efficient Retrofits
ROCKFORD, ILL., October 23, 2009 - Manufacturing has yet to reap many benefits from the $780 billion stimulus package, but an industry economist has uncovered a program that delivers both financial rewards and environmental benefits for the sector.
"As it evolved thus far, the stimulus cash has ended up in a wide variety of programs, many administered by the states that help them deal with budget shortfalls. The impact has essentially preserved jobs instead of creating new private sector work," said Dr. Chris Kuehl, economic analyst for the Fabricators & Manufacturers Association, International (FMA).
"One initiative that bypasses this issue, and others that have not allowed quick and effective disbursement of the money, is the Program for Energy Effiency through Responsible Stimulus (PEERS)," said Kuehl. "Its aim is simple: Get the government to direct $16 billion of the $780 billion to a program that supports energy efficiency retrofits.
"The secret to the plan is that every state has programs in place that could carry out the assignment," he continued. "These usually are utilities or those connected to some power provider. They already have the ability to go into a facility to conduct energy audits that allow a company to find ways to save money on its energy usage."
However, companies that received the audit often lacked the funds to make the changes, according to Kuehl.
"The idea behind PEERS, designed by the National Association of Lighting Management Companies (NALMCO), is to direct the stimulus money to help underwrite the costs of these retrofits," said Kuehl. "This leads to the proverbial win-win; companies save money by reducing energy costs, reduce their contributions to emissions and creates jobs for firms that do retrofit work and provide ongoing maintenance.
"The fact that existing agencies and organizations are in place to perform this work makes this a far more 'shovel ready' program than many others."
Gerald Shankel, FMA president and CEO, added this is the type of grass roots effort that should be supported by manufacturers to access portions of this stimulus money.
"Our members certainly recognize they can save money by installing more energy efficient equipment," Shankel said. "In fact, we offer members an energy audit program through Affiliated Power Purchasers International that helps them identify potential cost savings.
"Yet, it is more than challenging to invest in these technologies in the face of today's many economic pressures," he added. "The availability of government incentives to pursue this goal changes the dynamics in a very positive way. We applaud NALMCO for taking the lead in this initiative."
Based in Rockford, Ill., the Fabricators & Manufacturers Association, Intl. (FMA), is a professional organization with more than 2,300 members working together to improve the metal forming and fabricating industry. Founded in 1970, FMA brings metal fabricators and fabricating equipment manufacturers together through technology councils, educational programs, networking events, and the FABTECH International & AWS Welding Show. FMA also has a technology affiliate, the Tube & Pipe Association, International (TPA), which focuses on the unique needs of companies engaged in tube and pipe producing and fabricating.
NOTE TO MEDIA: Economist Dr. Chris Kuehl is available for interviews on this topic and other economic issues. Please contact Ben Arens or Gary Goodfriend at 1-800-837-7123 or via e-mail at barens@lcwa.com if you wish to schedule an interview.
