Tennessee Opportunities In Energy Efficiency Market Survey 2013

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Survey of Tennessee businesses conducted by the Shelton Group as part of the TN Energy Education Initiative in summer 2013. The report provides conclusions drawn from 200+ interviews in regards to challenges and opportunities in energy efficiency.

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Tennessee Opportunities In Energy Efficiency Market Survey 2013

  1. 1. Tennessee Energy Education Initiative Market Survey July 17, 2013 1
  2. 2. Objectives In conjunction with the Tennessee Energy Education Initiative, Shelton Group conducted a comprehensive survey of Tennessee businesses in selected industries to better understand the participation propensities for energy efficiency and renewable energy initiatives and to determine key motivators and drivers within market segments. The survey also sought to validate the best targets, content/messaging, and channels for program participation as determined from the market overview. Survey objectives will include the following: • Assess overall awareness of energy efficiency, behavior drivers, and attitudes related to energy efficiency improvements • Determine which types of energy efficiency improvements have been completed and which they think they need/plan to do • Determine motivations for conducting energy efficiency improvements • Gauge reaction to the program and financing options • Secure feedback to messaging and/or program content direction 2
  3. 3. Methodology • Telephone study of TN organizations in selected industries (see next slide for distribution of interviews by industry) • Sample list initially pulled from Hoovers database, and supplemented with lists from Hoovers Premier and MelissaData • To qualify for the study, respondents had to be primary decision makers or influencers for energy-related facility improvement • Interviewing conducted May 6–30, 2013 • Average interview length of 11 minutes • 200 completes with margin of error +/- 7.1% 3
  4. 4. Organization characteristics Region Decision Making Internationally 1% West 23% Middle 38% n=200 4 Nationally 10% East 40% Locally 89%
  5. 5. Organization Characteristics Square Footage % Own vs. Lease Facility 38% *Median sq ft = 36k 19% 17% 16% 50-100k Lease 29% 100k+ Own 71% 6% Less than 2.5-10k 2.5k 10-50k Number of Employees 10 to 49 33% 52% 15% Number of Facilities in TN 10% 7% Two-Four 50 to 99 100+ One 26% 57% Five-Nine 10+
  6. 6. Respondent Characteristics Female 24% Male 76% n=200 6 Average Age: 52 Influencer 47% Decision Maker 53%
  7. 7. Executive Summary 7
  8. 8. Importance of Energy • This study included a survey of 13 key industries within Tennessee. Overall, we found that eight out of ten organizations consider energy consumption important to daily business purchase choices and activities. – Respondents in organizations with more than one facility were more likely to consider energy consumption and conservation important than those with only one facility (83% vs. 73%). – In contrast, organizations in newer facilities (less than five years old) were more likely to consider energy consumption and conservation unimportant than those with older facilities (38% vs. 5%). 8
  9. 9. Energy Efficiency of Current Facilities • About two-thirds of the TN organizations surveyed consider their current facility(ies) energy efficient. – Regionally, organizations in East TN (75%) and Middle TN (63%) were more likely to consider their facilities energy efficient than those in West TN (51%). – Organizations in facilities over 20 years old were more likely to consider their facilities inefficient than those with newer facilities (19% vs. 3%). • Average number of completed EE improvements per organization: 3.3 – Facility owners were more likely to have made EE improvements than leasers (3.6 vs. 2.8) – Companies with multiple facilities (3.5) vs. one facility (3.2) – Average EE Updates by Sector: Education (4.3); Manufacturing & Distribution (3.4); Business Services (3.1); Healthcare (3.1); Hospitality/Retail (3.0) 9
  10. 10. Energy-Related Priorities and Improvements • While 11 of the 13 industries surveyed considered lighting a priority, more than half also listed HVAC as a top energy priority. – Unlike the other industries, respondents in the food manufacturing industry considered a number of other priorities important: cogeneration (40%), compressed air systems (40%), interior lighting (40%), manufacturing furnaces (40%), refrigeration (40%), and water heating (40%). • Organizational improvements generally paralleled industry priorities, with 76% of those surveyed reporting that they have already installed lighting improvements, and 56% having installed a more efficient mechanical or HVAC system. • Energy management, insulation, and renewable energy top the list of activities that companies recognize they need to do. 10
  11. 11. Top Motivators/Drivers • “Spending less on energy and more on other priorities” and “save money” are the top reasons cited for participating in energy-related improvements. – Facilities that were 20+ years old were less likely to select “save money” than were newer facilities (22% vs. 39%). – Regionally, organizations in West TN (42%) and Middle TN (31%) were more likely to select “save money” than those in East TN (19%). 11
  12. 12. Key Challenges/Barriers • Overall, “lack of budgets/funds” and “lack of time/too busy/other priorities” top the list of challenges/barriers. – When it comes to size, however, facilities that were under 50k square footage were more likely to say their organization “isn’t sure what to do to save more energy” than were larger organizations (30% vs. 8%). – In addition, influencers were more likely to say “implementing energy-related improvements is too complicated, inconvenient, and/or too disruptive” than were decision makers (23% vs. 12%). 12
  13. 13. Reaction to Funding Options • When asked, “If there was a program that offered 5-year loans with a 2% interest rate for energy-related improvements and retrofit projects ranging from $20,000 to $5 million, how would this impact your plans for facility improvement?,” 37% of TN organizations reported they would be more likely to complete facility improvements if they were offered this program. • In addition, when asked, “If there were a program that offered 10-year loans with a 5% interest rate for solar generation systems, how would this impact your plans for installing such a system?,” 26% of TN organizations indicate they would be more likely to install solar if this program was offered to them. 13
  14. 14. Sector Prioritization • Developed a scoring that considers: – # companies / with 10+ employees – % with multiple facilities / facilities with 50k+ sq. ft. – % owned vs. leased – Avg. number of completed and likely improvements – % perceived inefficient – % likely to act with financing 14
  15. 15. Lighting and HVAC top the list of energy-related priorities. Q13 - What are your organization's top three energy-related priorities? NET Lighting (interior/exterior) Lighting (interior) HVAC NET Energy/PC Power Management Lighting (exterior) Energy management/system monitoring Water heating Building envelope upgrades PC power management solutions Geothermal heating/cooling Data center power and cooling Compressed air systems Reflective/cool roofing Refrigeration Fleet cars/trucks/buses Co-generation equipment Manufacturing furnaces Solar Small motors/conveyors Other energy-related priorities 15 67% 56% 43% 37% 34% Respondents who lease 24% were more likely to select 20% energy management 19% systems than those who 15% own (35% vs.19%). 13% 11% Respondents w/newer 10% facilities (less than five 9% years old) were more 9% likely to select PC power 9% management (63% vs. 8% 15% overall). 7% 6% 3% 4% n=200
  16. 16. Companies surveyed have completed an average of 3.3 of these improvements. Q18a - Which improvement(s) has your organization completed on your primary facility in the past five years? Q18b - Does your primary facility need any of these improvements? Q18c Does your organization plan to do this in the next 12 months? Plan to do Installed more energy-efficient light fixtures, controls or occupancy sensors 76% Installed a more efficient mechanical and/or HVAC system 14% 56% 4% 6% 24% Installed more efficient appliances or refrigeration 38% 16% 4% Installed a more efficient water heating system 37% 17% 4% Added an energy management system or controls to make the facility more energy efficient 34% Added insulation, air sealing or ductwork 33% Installed more efficient manufacturing equipment Installed a reflective / cool roof Added a renewable energy generation system 30% 19% 13% 32% 3% 29% 12% 9% 27% 29% 2% Already completed Need to do n=200 16 5% 7%
  17. 17. While 11 of the 13 industries surveyed considered lighting a priority, more than half also listed HVAC as a top energy priority. Industry Sector (n size) Most frequently mentioned energy-related priority Real estate (8) Interior lighting (75%), exterior lighting (63%) Retail (30) Interior lighting (67%), exterior lighting (43%) Transportation and logistics (15) Interior lighting (60%), exterior lighting (40%) Chemicals and plastics (10) Interior lighting (60%), exterior lighting (40%) Wholesale distribution (20) Interior lighting (60%), exterior lighting (35%) Automotive (6) Interior lighting (50%), exterior lighting (50%) Healthcare (30) Interior lighting (60%), HVAC (53%) Restaurants (3) HVAC (100%), interior lighting (67%) Hotels and motels (7) HVAC (71%), interior lighting (43%) Private education (30) HVAC (70%), interior lighting (47%) Business services (26) HVAC (62%), interior lighting (58%) Technology and electronics (10) HVAC (50%) Food manufacturing (5) Cogeneration (40%), compressed air systems (40%), interior lighting (40%), manufacturing furnaces (40%), refrigeration (40%), water heating (40%) 17 Lighting HVAC Other
  18. 18. Messaging Effectively: Leveraging Motivators/Drivers to Address Challenges/Barriers by Industry Industry Sector (n size) Retail (30) Private education (30) Business Services (26) Healthcare (30) Automotive (6) Chemicals and plastics (10) Food manufacturing (5) Restaurants (3) Transportation and logistics (15) Technology and electronics (10) Real estate (8) Hotels and motels (7) Wholesale distribution (20) 18 Motivators/Drivers Challenges/Barriers Spend Less/More Lack of Payback on other Priorities Save Money Budget/Funds Period                          Other    
  19. 19. Conclusions/Recommendations 19
  20. 20. Moving TN Organizations Down the Path The easiest path to encourage improvements should start with/parallel industry priorities: • Energy-related priorities – 11 of the 13 industries surveyed consider lighting a top priority for their company. – 7 of the 13 consider HVAC a top priority. • Facility improvements – 76% have already improved the lighting while 56% have improved the HVAC. 20
  21. 21. Moving TN Organizations Down the Path RECOMMENDATION: For companies new to energy improvements, emphasize most common first steps (already perceived needs): lighting and HVAC. For those who are further along the path and have already integrated these improvements, focus on “gaps” that companies recognized as needing to improve: energy management (32%), insulation (29%) 21
  22. 22. Packaging/Bundling Opportunity • While more than one-third of the organizations surveyed considered energy/PC management as a top priority and 32% recognize a need to do this improvement, only 3% plan to make this improvement. RECOMMENDATION: • Consider packaging or bundling funding for energy/PC power management improvements with lighting, HVAC and insulation projects to speed adoption of these systems which will increase 1 behavior change and compound impact. • Demonstrate the effectiveness of bundling these systems with improvements with stats on increased savings/higher ROI and shorter payback period. 22
  23. 23. Encourage interest in renewable energy 29% say they think they need a renewable generation system and it’s a higher priority initiative (7% likely) than many others. 26% said they would likely undertake a renewable energy project with financing, as described. RECOMMENDATION: Prioritize solar and other renewable energy project messaging and include information on state tax incentives for renewable energy systems. 23
  24. 24. Appendix: Detailed Findings 24
  25. 25. Organizational Characteristics 25
  26. 26. Geographic distribution of interviews closely matched regional patterns for focus industries West 23% East 40% Middle 38% n=200 26
  27. 27. The majority of organizations surveyed were housed in a single facility within Tennessee. Q7 - How many facilities / locations does your organization have in Tennessee? One 57% Two to four 26% Five to nine 7% Ten or more Don't know / Not sure 11% 1% While not statistically significant, we observed that organizations in the following industries were more likely to have multiple locations: • Food manufacturing • Healthcare • Real estate n=200 27
  28. 28. Decision making for energy-related improvements primarily occurs locally. Q8 - Where would the decision-making for energy-related improvements for your organization primarily occur? Locally - by TN owners / decision makers 90% Nationally - by out-of-state decision makers Internationally - by decision makers in another country 10% Organizations in the hotel industry were more likely to say decisionmaking for energy-related improvements primarily occurs nationally (29% vs.10% overall). 1% n=200 28
  29. 29. More than half of the organizations surveyed employ fewer than 50 people. Q9 - How many people does your organization employ? 10 to 49 53% 50 to 99 15% 100 or more Don't know / Not sure 33% Organizations in the following industries were more likely to have 100+ employees: • Chemicals and plastics • Healthcare • Transportation & logistics • Education 1% n=200 29
  30. 30. Median square footage of facilities was 36k. Q15 - What is the square footage of space in this facility? Less than 2,500 square feet 6% 2,501 to 10,000 square feet 19% 10,001 to 50,000 square feet 38% 50,001 to 100,000 square feet 17% More than 100,000 square feet Don't know / Not sure 16% 6% n=200 30
  31. 31. Fewer than one-third of organizations surveyed lease their facility. Q16 - Does your organization own or lease this facility? Organization owns facility Organization leases facility 71% 29% Companies in manufacturing, transportation and logistics, hotel, and education industries were somewhat more likely to own their facility, while those in the healthcare, real estate, wholesale distribution, and services sectors were somewhat more likely to lease. n=200 31
  32. 32. Respondent Characteristics 32
  33. 33. More than half of those surveyed were primary decision makers for energy-related improvements. Q5 - Which of the following best describes you? You are a primary decision maker for energy-related improvements. You are an influencer for energyrelated improvements. 53% 48% Not surprisingly, primary decision makers were more likely to be an owner, partner, president, CEO, or COO. n=200 33
  34. 34. All respondents were either decision makers or influencers for energy-related improvements. Q6 - Which one of these best describes your position? Owner or partner President or CEO Chief Operations Officer CFO, comptroller, VP of Finance, etc. Public administrator Director Purchasing or procurement manager Facilities manager Energy manager Construction or maintenance manager Plant manager Some other manager Some other position 26% 12% 4% 10% 2% 11% 4% 15% 2% 5% 5% 5% 3% n=200 34
  35. 35. More than three-quarters of those surveyed were male. Q21 - Gender While not statistically significant, there was a somewhat higher proportion of women acting as decision makers/influencers for energy-related improvements within the following industries: Female 24% • • Education (33%) • Restaurants (33%) • Services (31%) • Male 76% Healthcare (27%) Technology & Electronics (30%) n=200 35
  36. 36. Median age of respondents was 52 years. Q22 - Would you please tell me your age? 18–24 years 1% 25–34 years 12% 35–44 years 16% 45–54 years 31% 55–64 years 29% 65 years or more Refused 11% While not statistically significant, respondents in the following industries were somewhat younger on average than those in other industries: • • • • Healthcare Hotels Real estate Restaurants 2% n=200 36
  37. 37. Attitudes Toward Energy Efficiency 37
  38. 38. Almost eight out of ten organizations surveyed consider energy usage important. Q10 - How important is energy consumption and conservation in your organization's daily business purchase choices and activities? Important Neither important nor unimportant Unimportant 77% In contrast, organizations in newer facilities (less than five years old) were more likely to consider energy consumption unimportant (38% vs. 5%). 16% While not statistically significant, respondents in the technology & electronics segment were more likely to consider energy consumption unimportant. 8% n=200 38 Respondents in organizations with more than one facility were more likely to consider energy consumption important than those with only one facility (83% vs. 73%).
  39. 39. About two-thirds consider their facility efficient. Q11 - Overall, how would you rate the energy efficiency of your current facility(ies)? Efficient 65% Neither efficient nor inefficient 21% Inefficient Don't know / Not sure 13% 1% Regionally, organizations in East TN (75%) and Middle TN (63%) were more likely to consider their facilities energy efficient than those in West TN (51%). Organizations in facilities over 20 years old were more likely to consider their facilities inefficient than those in newer facilities (19% vs. 3%). While not statistically significant, respondents in the technology & electronics segment were more likely to consider their facility inefficient (30% vs. 13% overall). n=200 39
  40. 40. Energy-Related Priorities 40
  41. 41. Improvements by Sector: Lighting Fixtures/Controls • Overall, 76% of the industries surveyed have completed this improvement. Of the energyrelated improvements measured, this one had the highest completion levels across the 13 industries surveyed, with the exception of the technology and electronics sector in which installation of a more efficient mechanical and/or HVAC system had the highest completion rate. • The business service industry also had a somewhat lower level of completion of this improvement compared to other industries (58% vs. 76% overall). 41
  42. 42. Improvements by Sector: Mechanical/HVAC System • Overall, 56% of the industries surveyed have completed this improvement in the past five years. While not statistically significant, there were lower completion rates for this improvement in the automotive industry (17%) and in the real estate industry (38%). • Several industries had above average completion rates: – Hotels (100%) – Transportation and logistics (80%) – Technology and electronics (80%) 42
  43. 43. Improvements by Sector: Appliances/Refrigeration • Overall, 38% of the industries surveyed have completed this improvement in the past five years. • Several industries had above average completion rates for this type of improvement: – Food manufacturing (80%) – Real estate (75%) – Hotel (71%) – Restaurants (67%) 43
  44. 44. Improvements by Sector: Water Heating • Overall, 37% of the industries surveyed have completed this improvement in the past five years. • Two of the industries had below average completion rates for this improvement: wholesale distribution (5%) and technology and electronics (20%). • Both hotels (57%) and education (57%) industries had above average completion rates for this type of improvement. 44
  45. 45. Improvements by Sector: Energy Management • Overall, 34% of the industries surveyed have completed this improvement in the past five years. • Respondents in the chemicals/plastics industry (70%), education industry (60%), and transportation industries (53%) reported above average completion rates for this type of improvement. • Industries with below average completion rates for this improvement included: retail (13%) and technology & electronics (10%). • Also, although we only spoke with 3 restaurants, none of them had completed this improvement. 45
  46. 46. Improvements by Sector: Insulation • Overall, 33% of the industries surveyed have completed this improvement in the past five years. • Hotels (71%), restaurants (67%), and food manufacturing (60%) were more likely to have completed this type of improvement. • Industries with below average completion rates for this improvement included: transportation & logistics (20%), retail (20%) and technology & electronics (20%). • Also, although we only spoke with 6 respondents in the automotive industry, none of them had completed this improvement. 46
  47. 47. Energy management, insulation, and renewable energy top the list of activities companies think they need to do. Q18b - Does your primary facility need any of these improvements? Q18c - Does your organization plan to do this in the next 12 months? Plan to do Add an energy management system or controls to make the facility more energy efficient 32% This isn’t a priority, however. 3% Add insulation, air sealing or ductwork 29% 12% Add a renewable energy generation system 29% 7% 27% Install a reflective / cool roof 5% 24% Install a more efficient mechanical and/or HVAC system 6% Install a more efficient water heating system 17% 4% Install more efficient appliances or refrigeration 16% 4% Install more energy-efficient light fixtures, controls or occupancy sensors Install more efficient manufacturing equipment 14% Need to do 9% 2% n=200 47 4%
  48. 48. Motivators/Drivers 48
  49. 49. Spending less on energy and saving money are the top reasons cited for improvements. Q17 - What would be your one top reason for your organization to participate in energy-related improvements? The focus To spend less on energy and more on other priorities is on “other To save money priorities” 39% 29% To reduce energy waste 7% To get more control over energy usage and costs 7% 6% To make the facility more comfortable To protect our nation's economy and reduce… To accomplish a corporate objective or directive 4% 3% To protect the environment and save natural resources 2% Some other reason 2% To satisfy customer or market expectations 2% To reduce greenhouse gas emissions 2% To help offset future rate increases Facilities that were 20+ years old were less likely to select “save money” than were newer facilities (22% vs. 39%). 1% Regionally, organizations in West TN (42%) and Middle TN (31%) were more likely to select “save money” than those in East TN(19%). n=200 49
  50. 50. Top drivers/motivators by industry: Focus on spending less and saving money Industry Sector (n size) Most frequently mentioned Automotive (6) Spend less on energy/more on other priorities (67%) Real estate (8) Spend less on energy/more on other priorities (50%) Retail (30) Spend less on energy/more on other priorities (47%) Private education (30) Spend less on energy/more on other priorities (40%) Business services (26) Spend less on energy/more on other priorities (42%) Healthcare (30) Spend less on energy/more on other priorities (43%) Technology and electronics (10) Spend less on energy/more on other priorities (40%) Chemicals and plastics (10) Hotels and motels (7) Spend less on energy/more on other priorities (30%), save money (30%) Spend less on energy/more on other priorities (29%), save money (29%) Food manufacturing (5) Save money (80%) Restaurants (3) Save money (67%) Transportation and logistics (15) Save money (47%) Wholesale distribution (20) Save money (35%) 50 Spend less on energy/ more on other priorities Save Money
  51. 51. Detail on Top Drivers/Motivators by Sector While not statistically significant: • Automotive industry respondents were even more likely to select “spend less on energy and more on other priorities” (67% vs. 39% overall). • Those in real estate were even more likely to say “spend less on energy and more on other priorities” (50% vs. 39% overall). • Hotel industry respondents were less likely to select “spend less on energy and more on other priorities” (29%) as were wholesale distributors (25%). • Food manufacturing (80%) and restaurants (67%) were much more likely to select “save money” than respondents overall (29%). • Transportation and logistics respondents were even more likely to say “save money” (47% vs. 29% overall). • Education (17%) and service (19%) industry respondents less likely to select “save money.” 51
  52. 52. Additional Drivers/Motivators by Industry Sector • Automotive respondents were more likely to select “to reduce energy waste” (17% vs. 7% overall). • Healthcare (17%) and hotel (14%) respondents were more likely to select “To get more control over energy usage and costs” than respondents overall (7%). • Food manufacturing respondents were more likely to select “To make the facility more comfortable during cold winter and hot summer months” (20% vs. 6% overall). • Hotel respondents were more likely to select “To satisfy customer or market expectations” (29% vs. 2% overall). 52
  53. 53. Challenges/Barriers 53
  54. 54. Overall, lack of funding and other priorities top the list of challenges/barriers. Q12 - What would you say are the key challenges or barriers your organization faces in making energy-related improvements? Lack of budget/funds 50% Lack of time/too busy/other priorities 40% Your organization believes it has done all the energy-related improvements possible. The payback period on energy-related improvements is too long. Your organization isn't sure what to do to save more energy. Implementing energy-related improvements is too complicated, inconvenient and/or too disruptive. Decision makers haven't considered it or don't believe it would really help much. You don't plan to be in the facility very long. 26% 24% 23% 18% 17% 9% Not applicable/lease improvements not allowed or very unlikely 6% Some other reason 6% 54 Facilities that were under 50k square footage were more likely to say that they were uncertain what to do than larger facilities (30% vs. 8%). Influencers were more likely to say that implementing improvements is disruptive than were decision makers (23% vs. 12%). n=200
  55. 55. Key barrier cited varied by industry, with lack of funds, payback period, and other priorities most frequently mentioned. Industry Sector (n size) Most frequently mentioned Restaurants (3) Lack of budget/funds (100%) Private education (30) Lack of budget/funds (70%) Business services (26) Lack of budget/funds (58%) Healthcare (30) Lack of budget/funds (57%) Transportation and logistics (15) Lack of budget/funds (47%) Retail (30) Lack of budget/funds (47%) Automotive (6) Lack of budget/funds (50%), payback period (50%) Food manufacturing (5) Payback period (60%) Chemicals and plastics (10) Payback period (50%) Wholesale distribution (20) Lack of time/too busy/other priorities (65%) Real estate (8) Lack of time/too busy/other priorities (63%) Technology and electronics (10) Lack of time/too busy/other priorities (50%) Hotels and motels (7) Decision makers (43%) 55 Funds Payback Other
  56. 56. Reaction to Financing Options 56
  57. 57. 37% of TN organizations would be more likely to complete facility improvements if they were offered this program. Q19 - If there were a program that offered 5-year loans with a 2% interest rate for energy-related improvements and retrofit projects ranging from $20,000 to $5 million, how would this impact your plans for facility improvement? (n=200) It makes me very likely to go ahead with improvements this year. 12% 37% It makes me somewhat more likely to go ahead with improvements in the next 12 months. 25% It does not impact my plans at all. I'm still unlikely to undertake improvements. I don't know and am still undecided about improvement plans. 40% 24% Survey research generally finds that participation propensity tends to be overstated by respondents. For this reason, it is recommended that an adjustment be used to provide a more realistic market estimate. An adjustment using half of those who indicate that they are very likely and one fourth of those who believe that they are somewhat likely means that participation propensity will be about 12%. 57
  58. 58. Over one-fourth of organizations would be more likely to install solar if this program was offered to them. Q20 - If there were a program that offered 10-year loans with a 5% interest rate for solar generation systems, how would this impact your plans for installing such a system? (n=200) It makes me very likely to install a solar generation system this year. It makes me somewhat more likely to install a solar generation system in the next 12 months. 8% 26% 18% It does not impact my plans at all. I'm unlikely to install a solar generation system. I don't know and am undecided about solar generation systems. 52% 23% Survey research generally finds that participation propensity tends to be overstated by respondents. For this reason, it is recommended that an adjustment be used to provide a more realistic market estimate. An adjustment using half of those who indicate they are very likely and one fourth of those who believe that they are somewhat likely means that participation propensity will be about 9%. 58
  59. 59. Sector Profiles 59
  60. 60. Industry Sector Groupings Due to relatively small sample sizes, sectors have been grouped as follows for these industry profiles: 1. Manufacturing and Distribution (56) - Automotive (6), Chemicals (10), Food (5), Transportation and logistics (15), Wholesale distribution (20) 2. Hospitality and Shopping (40) - Hotels (7), Restaurants (3), Retail (30) 3. Business Services (44) - Real estate (8), Business Services*(26), Technology^(10) 4. Healthcare (30) 5. Education (30) 60
  61. 61. Manufacturing and Distribution (n=56) Facilities: Locations: 55% have one location; 34% have two to four locations Age of facility: 59% are in a facility 20+ years old Size of facility: medium to larger facilities (39% 10-50k sq. ft., 41% 50k+ sq. ft) Ownership: 79% own the facility Region: 45% in East TN, 30% in Middle TN, and 25% in West TN Employees: Tend to be larger employers with 59% having more than 50 employees Energy attitudes: 80% consider energy important and 70% consider their facility efficient Key challenges/barriers: Lack of time/too busy/other priorities (41%), lack of budget/funds (36%) Top energy-related priorities: Interior lighting (57%), exterior lighting (38%), and energy/PC power management (34%) Top motivator/driver: Save money (39%), spend less on energy/more on other priorities (30%) Improvements: Already completed: 86% lighting, 54% mechanical/HVAC Need to complete: 29% energy management, 27% reflective/cool roof Plan to complete: 13% renewable energy, 11% insulation Participation propensity: 43% likely to make facility improvements if loan program available; 29% likely to install solar if loan program available 61
  62. 62. Hospitality and Shopping (n=40) Facilities: Locations: 63% have one location; 23% have two to four locations Age of facility: 65% are in a facility 20+ years old Size of facility: smaller facilities (68% <50k sq. ft) Ownership: 73% own the facility Region: 48% in East TN, 35% in Middle TN, and 18% in West TN Employees: Tend to be smaller employers with 73% having less than 50 employees Energy attitudes: 70% consider energy important and 60% consider their facility efficient Key challenges/barriers: Lack of budget/funds (48%), lack of time/too busy/other priorities (38%), Top energy-related priorities: Interior lighting (63%), exterior lighting (40%), and energy/PC power management (40%) Top motivator/driver: Spend less on energy/more on other priorities (43%), save money (33%) Improvements: Already completed: 73% lighting, 55% mechanical/HVAC Need to complete: 38% energy management, 33% insulation Plan to complete: 13% insulation, 8% HVAC, 8% lighting Participation propensity: 40% likely to make facility improvements if loan program available; 35% likely to install solar if loan program available 62
  63. 63. Business Services (n=44) Facilities: Locations: 66% have one location; 25% have two to four locations Age of facility: 64% are in a facility 20+ years old Size of facility: smaller facilities (66% <50k sq. ft) Ownership: 64% own the facility Region: 41% in East TN, 36% in Middle TN, and 23% in West TN Employees: Tend to be smaller employers with 71% having less than 50 employees Energy attitudes: 68% consider energy important and 59% consider their facility efficient Key challenges/barriers: Lack of budget/funds (52%), lack of time/too busy/other priorities (50%) Top energy-related priorities: HVAC (52%), interior lighting (50%), and energy/PC power management (43%) Top motivator/driver: Spend less on energy/more on other priorities (43%) Improvements: Already completed: 64% lighting, 50% mechanical/HVAC Need to complete: 32% insulation, 30% energy management Plan to complete: 14% insulation, 9% renewable energy Participation propensity: 25% likely to make facility improvements if loan program available; 18% likely to install solar if loan program available 63
  64. 64. Healthcare (n=30) Facilities: Locations: 60% have more than one location, with 30% having 10+ Age of facility: 50% are in a facility 20+ years old Size of facility: smaller facilities (70% <50k sq. ft) Ownership: 53% own the facility Region: 40% in Middle TN, 33% in East TN, and 27% in West TN Employees: Tend to be larger employers with 57% having 100+ employees Energy attitudes: 83% consider energy important and 70% consider their facility efficient Key challenges/barriers: Lack of budget/funds (57%) Top energy-related priorities: Interior lighting (60%), HVAC (53%), and energy/PC power management (40%) Top motivator/driver: Spend less on energy/more on other priorities (43%) Improvements: Already completed: 63% lighting, 57% mechanical/HVAC Need to complete: 37% energy management, 33% renewable energy Plan to complete: 7% mechanical/HVAC, 7% lighting, and 7% insulation Participation propensity: 37% likely to make facility improvements if loan program available; 20% likely to install solar if loan program available 64
  65. 65. Education (n=30) Facilities: Locations: 60% have one location; 23% have two to four locations Age of facility: 78% are in a facility 20+ years old Size of facility: medium to larger facilities (43% 10-50k sq. ft and 40% in 50sq. ft+ facility) Ownership: 80% own the facility Region: 53% in Middle TN, 27% in East TN, and 20% in West TN Employees: Tend to be midsize to larger employers with 60% having 50+ employees Energy attitudes: 87% consider energy important and 67% consider their facility efficient Key challenges/ barriers: Lack of budget/funds (70%) Top energy-related priorities: IHVAC (70%) interior lighting (47%), exterior lighting (27%), building envelope upgrades (27%) Top motivator/driver: Spend less on energy/more on other priorities (40%) Improvements: Already completed: 90% lighting, 67% mechanical/HVAC, 60% energy management Need to complete: 37% renewable energy, 37% reflective/cool roof Plan to complete: 17% insulation, 13% reflective/cool roof Participation propensity: 37% likely to make facility improvements if loan program available; 23% likely to install solar if loan program available 65
  66. 66. This project is funded under an agreement with the State of Tennessee. This material is based upon work supported by the Department of Energy under Award Number DE-EE0000160. CFDA 81.041. 66
  67. 67. www.TNEnergy.org 67

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