'Energy has become one of our biggest costs,' manufacturer says as its enlists expert advice to cut costs

Securing a cost-effective energy agreement has helped one of Birmingham’s oldest-established manufacturers re-invest in delivering precision components for the automotive, construction, electrification and medical sectors.

Brandauer, which was set-up 164-years-ago to produce pen nibs for the world and is now a global leader in metal stamping, has tapped into expert advice from Greenfields Energy to move to a fixed contract on electricity and a cheaper agreement for gas that has generated more than £50,000 in savings.

This has immediately been channelled into an automated assembly line and enhancing its wire EDM capability, giving it the capacity to secure new orders from customers at home and overseas in the EU, China and the Middle East.

The Newtown-firm has also benefitted from an audit to ensure the Agreed Supply Capacity Levels were appropriate for the short and medium-term growth expected following the MBO (management buy out) last year, not to mention clarifying the Targeting Charging Review banding was right.

Rowan Crozier, CEO of Brandauer, based in Bridge Street West, Birmingham, said: “Energy has grown to become one of our biggest costs as we embrace more automation and technology - this means we must be smart in how we access the most competitive and reliable gas and electricity prices.

“For a manufacturer dealing with so many day-to-day issues and customer requirements, this can be a complex and frustrating challenge. That’s why we called in Greenfields Energy, who we knew had a strong working relationship with industry.

“Liam and his team immediately put us at ease, working with the team to explore our current situation and any pain points we were experiencing. They then used their knowledge of the market to suggest the best agreements.

“In our case, we were just completing the MBO so needed security of supply and at a rate that allowed us to plan for the next two years, so we could commit to investments that make a real difference to our business.”

After completing a painless audit, Greenfields Energy secured a six per cent cost down in electricity price by moving Brandauer from a flexible deal to a fixed contract for two years.

This avoided the market volatility that followed this year and gave the management team clear visibility on costs. A successful TCR Banding analysis also alleviated £36k of unnecessary charges.

The final ‘energy’ win was gas costs being cut by nearly a fifth, amounting to more than £50,000 of savings that have immediately been re-invested in new technology.

“We’re on course to hit £12m in revenue by the end of 2027 with lots of exciting opportunities in laminations, wire EDM work and specialist tooling projects for new markets,” added Rowan.

“To be able to make the most of this, we have to be on top of energy costs and I believe we’re now in that position - mainly thanks to the advice and ongoing support from Greenfields.”

Liam Conway, co-founder of Greenfields Energy Group, said: “We currently work with over 150 manufacturing businesses across the country, acting as an extension to their core management teams and delivering the very best, impartial energy advice.

“Brandauer is the perfect example of how, through listening closely and providing clear guidance, we have delivered a sustainable solution to its energy requirements and savings that have gone into making the business even stronger.

“Rowan and his team can plan for expansion with real certainty that there will be no nasty energy surprises, investing more into technology and recruiting the next generation of precision engineers.”

Greenfields Energy Group, which recently signed a new deal to support Black Country Chamber of Commerce members, provides procurement consultancy on electricity, gas and water, combining extensive risk management and trading expertise with personalised service and modern tools and tech.

Its new Energy Bureau Service acts as a ‘behind-the-scenes’ energy department for businesses, handling the admin, analysis and reporting so management teams can focus on handling day-to-day activities.

From validating utility bills to providing in-depth consumption reporting, this industry-leading service ensures energy strategies are accurate, cost effective and complaint.