How to mitigate spray booth energy cost increases

November 29, 2022

No matter the industry you work in, spiralling overheads are one of the biggest threats to your financial security. Energy costs have risen rapidly in the last six months, so read on to learn why these costs are spiralling, what the government is doing about it and what this means for the vehicle repair industry. 

We completed research and development and found that we could save up to 70% energy running costs for a Spray Booth with no existing energy saving technology. This could represent up to £53 per job of profit saved.

How have energy prices changed?

Energy prices for businesses have never had the protection of the Ofgem price cap, and this means that energy prices can be incredibly high. With the war in Ukraine continuing to affect the supply of gas to Europe, the cost of energy production keeps spiking higher and higher. Wholesale costs have been capped at £211 per MWh for electricity and £75 per MWh for gas by the Government, but that doesn’t include non-energy related costs such as delivery, distribution and taxes. This support only runs until April 2023, and forecasts are showing no signs of costs reducing while the conflict in Ukraine continues. 

How does this affect the vehicle repair industry?

This has a severe impact on the way the vehicle repair industry works. It is important to remember that whilst homes and domestic customers pay a limited amount for their electricity, there is no price cap on the amount that commercial users pay for gas and electricity. Instead, suppliers charge what they need to in order to cover the wholesale cost of energy production, alongside any profit that the company decides it wants to take. 

This means that the vehicle repair industry could really struggle. Without support, some businesses could be forced to shut for certain days over the winter months, or even stop offering certain repairs. After all, the Spray Booth dependency within vehicle repair bodyshops is very high. Turning Spray Booths off for good would save companies a lot of money, but simply isn’t practical as heat is needed to apply and dry paint on cars.

How can you reduce your energy costs?

If you’re looking to make further energy cost savings, AGM Services retrofit technology to existing spray booths to offer both savings in energy used and process times of anywhere from 10% to 70%. To protect your business long term from the effects of energy inflation, contact the AGM services team today to find out the support we can offer your organisation.

Written by Elaine Butler