Energy Consumption

1. 1

   The energy costs of individual small businesses vary greatly. Ten (10) percent of small employers claim that energy costs are the largest single cost they have while 8 percent claim that they have no direct energy expenses.

2. 2

   Small-business energy costs (closely related to consumption) are primarily linked to vehicles (38%), heating and cooling of occupied space (33%), operating equipment or processes (21%) and lighting (6%).

3. 3

   Of the 84 percent who use vehicles in their business operations, 49 percent did not change much of anything in the last year to counteract the higher price of gasoline and/or diesel. The most frequent step for those who did was: 18 percent rescheduled or changed routing; 16 percent used fewer vehicles or used them less frequently; and 11 percent purchased or leased more energy efficient vehicles.

4. 4

   Fifty-seven (57) percent own the building in which their business is primarily located. Seventy-one (71) percent of those who lease directly pay the heating and cooling bill, meaning that between 85 and 90 percent have an immediate incentive to reduce energy costs in the space they occupy.

5. 5

   One in five (20%) of those who directly pay heating and/or cooling bills remodeled their building or substantial parts of it in the last three years in a way that achieves notable energy cost savings, and a non-mutually exclusive 21 percent plan to do so in the coming three years.

6. 6

   Eleven (11) percent of small businesses occupy space in addition to that in their primary location. Just over half (56%) occupy one facility; the remainder occupy more. About half own those locations. Twenty-four (24) percent lease them resulting in about 62 percent with a direct incentive to conserve in these structures.

7. 7

   Fluorescent lighting is now the standard in small businesses. Seventy-three (73) percent use it; 65 percent in lamps and 8 percent in compact bulbs. Just 12 percent still employ incandescent lighting and 6 percent halogen.

8. 8

   Two-thirds (67%) of small businesses have outdoor lighting. The primary purpose of outdoor lighting in over 80 percent of cases is safety and/or security. Most of the remainder use it primarily for advertising and/or awareness.

9. 9

   Twenty-six (26) percent use equipment and/or processes that require large amounts of energy like ovens, refrigeration units, or drying machines.

10. 10

    Within the last three years, 43 percent have taken steps to reduce the amount of energy their businesses consume. The most prominent steps were operational, such as changing to more efficient lighting, changing the thermostat, rearranging or rescheduling processes, and switching-off lights or equipment when not in use. The most frequent investments were new and more energy-efficient equipment, adding insulation, new windows and/or doors, and installed/improved heat recycling systems. Just 27 percent of those who had taken at least one step could name a second step they had taken.

Volume 6, Issue 3, 2006
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 5Do you have a contract with your electric company that gives it the right to reduce the supply of electricity you receive during peak periods in exchange for a lower rate? Top 100
• 6Within the last three years, have you taken one or more steps to reduce the amount of energy your business consumes? Top 100
• 1(expense) Energy, such as electricity, natural gas, gasoline, and fuel oil.
• 2Are your business energy costs linked primarily to:?
• 3About how many vehicles do you use in your business?
• 3aAre there vehicles on the market today that can perform substantially the same business tasks that you require of yours, yet use notable less energy? Do you believe that strongly or not so strongly?
• 3bConsidering all factors that influence your decision when you replace your business vehicles, will the energy efficiency of the vehicle you buy be:?
• 3cWhich best describes how you have changed operation of your business vehicles in the last year to compensate for higher gas and diesel prices?
• 4In what type of building or facility is the primary location of your business housed? Is it housed in a:?
• 4aIs the building free standing or attached?
• 4bWhich best describes the immediate area where your business is located?
• 4cApproximately, how many square feet does your business occupy in this building?
• 4dDoes your business occupy the entire building?
• 4eIn approximately what decade was the building constructed?
• 4fDo you own the building in which your business is primarily located or do you lease the space?
• 4gDo you pay the heating and/or cooling bill for your business directly or is that cost rolled into the rent or lease payment?
• 4g1Have you remodeled this building or large portion of it in the last three years in a way that had notably favorable effects of your heating and/or cooling costs?
• 4g2Do you plan to make any changes in this building over the next two or three years that will help reduce your heating and/or cooling costs?
• 4g3Does your business have a computer-controlled environment, that is, where heating and/or cooling are automatically adjusted for temperature, time of the day, day of the week and so forth?
• 4hDo you directly pay the bill for electricity to light your business, or is the electricity bill rolled into the rent or lease payment?
• 4h1Do you primarily light your business with:?
• 4h2Do you use outdoor lighting primarily for:?
• 4h3Do you have a computer-controlled lighting system that adjusts the lighting level for outside brightness or similar factors?
• 4iDo you use equipment or processes in your business that require large amounts of energy to operate? Examples include equipment that heats or cools like stoves or freezers, or large engines that power mechanical equipment, or processes such as drying brick.
• 4i1Would you estimate that you use more energy, at least in terms of cost, for this type of equipment than for space heating, space cooling, and lighting combined?
• 4i2Do you have a system that recycles excess heat or cold created by this equipment into other uses?
• 6aWhat were the most important steps you took? (Allow no more than two answers.)
• 6bWho has primary responsibility for selecting and implementing these energy-saving measures? Is it:?
• 7Are you aware of steps making economic sense that you can take to reduce your use of energy should energy costs rise another 25 percent?
• 8Does your business occupy space in a building or buildings other than its primary location, not including temporary facilities such as a construction site?
• 8aHow many more?
• 8bDo you own this building in which this part of your business is housed or do you lease it?
• 8b1Do you pay the heating and/or cooling bills for this business location?
• 8b2Do you directly pay the lighting bill for this business location?
• 9Does your business lease space to other businesses or people in any location?
• 9aAs a general rule, do your tenants pay their heating, cooling and lighting bills directly or do you pay them and then roll the costs into the rent?