Once the capital of American manufacturing. New York factory jobs are now few and far between. Facing stiff competition from foreign imports, companies that have resolved to continue their operations in the tri-state area have had to get creative to contend with prohibitive operational costs.
Allied Converters, a plastics converting company specializing in flexible plastic packaging, has continued to succeed thanks in large part to its commitment to energy efficiency and sustainable business practices.
“We were aware of the high-energy costs in the New York Metropolitan area, so we wanted to make our facility as efficient as possible, both in terms of operational efficiency and energy efficiency,” says Richard Ellenbogen, president of Allied Converters.
Through a combination of cogeneration and solar array, as well as an aggressive recycling program, Allied Converters’ operational costs have been substantially reduced.
July 2009 marked the culmination of a decade long effort by Ellenbogen to make Allied Converters facility more environmentally efficient. The company’s building had been expanded and remodeled between 1999 and 2001; extra conduits and sleeves were buried in the foundation to allow for easier adoption of newer technologies in the future and insulation was added to the walls and roof to reduce thermal loading.
In 2003, Ellenbogen installed a combined heat and power system, also known as co-generation. Allied’s 75% efficient CHP System and its 50-kilowatt solar array provide over 80% of the facility’s electricity. As a result of these improvements, the 55,000 square foot facility’s annual energy bill is approximately $0.70 per square foot, compared with an average cost for Westchester County of greater than $2.50 per square foot.
With the recent rapid drop in natural gas prices, Allied Converters’ electricity costs (through the CHP production) have actually gone down, while electricity prices throughout the New York metropolitan area continue to trending upward. According to Ellenbogen, these results demonstrate it is possible to thrive as a manufacturer in New York State, including the costly New York Metropolitan area.
“Our energy consumption is down considerably as energy costs continue to rise. It makes sense. Any manufacturer who isn’t doing this is being shortsighted. By taking these initiatives we’re getting cash back, which is crucial as the cost of commodities continues to rise.”
For more information email Richard@garb-o-liner.com or 914-235-7123
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