With increased inflation and a lack of confidence across food and drink manufacturing, James Hampshire at Powerstar considers how modern energy management technologies are helping companies address the issues.
The Food & Drink Federation (FDF) Q1 2025 State of Industry Report[i] highlights low confidence for food manufacturing businesses, with a third anticipating that conditions will worsen. Production costs increased by around 4.5% to March, and 22% of manufacturers have experienced cost increases of 10% or more. Inflation for food and drink companies is outpacing general inflation, and has risen from 1.5% in June 2024 to 4.5% in 2025, with further increases expected[ii].
Business resilience
The FDF Report identifies manufacturers’ priorities to meet this challenging environment, finding that investment rates are stable. Approximately 80% of manufacturers intend to maintain or increase levels. Half plan to invest in plant and machinery, with 22% of large-scale manufacturers and 59% of mid- and small-scale companies prioritising increased automation. As manufacturers determine investment priorities, automation and energy efficiency – lowering costs without impacting productivity – are key.
Growing confidence with modern energy management
Complementing plant and automation investment, improving existing energy infrastructure can help maximise ROI by reducing energy demand. Increased automation often equates to higher energy usage, making efficient energy management a priority. Identifying efficiencies can also help justify new plant investment.
Voltage optimisation (VO) and low loss transformers can be an ideal starting point. VO adjusts incoming grid supply to the optimal voltage for your site equipment. While grid supply is generally around 248V, most UK electrical equipment operates at 220V. Aside from burnout and wear and tear, this leads to significant energy wastage, and unnecessary emissions and costs. Transformersstep-up or step-down incoming voltage for usable power and, where companies have on-site renewables, they are necessary to integrate this sustainable power.
Across the UK’s 230,000-strong transformer fleet, the average age is over 60 years[iii], yet the intended design lifespan is around twenty. An ageing transformer creates a potential point of failure while wasting a significant amount of energy. Modern transformers can reduce core loses – up to 70% lower than conventional transformers. So, if your energy infrastructure already incorporates these, reviewing their age and efficiency can be worthwhile.
For an energy-intensive sector such as food and drink processing, ROI can be immediate. At Quorn Foods, replacing outdated transformers has increased efficiency across their high-voltage infrastructure, reducing energy usage by over ten percent and saving £70,000+ annually. This improvement in efficiency extends to other food manufacturers and retailers such as M I Dickson, with a new VO solution reducing energy consumption by over 8,000 kWh and saving 13% per tonne of product respectively.
The business model for food and drink manufacture is often based on low margin-high volume, so energy efficiency is vital. Where investment in automation is planned, improved energy management can reduce costs, for better margins.
For more info about Powerstar’s energy management technologies and expertise in the food and drink sector, visit the company’s website.
