Manufacturers are always on the lookout for cost savings — especially with their energy usage, which represents a significant piece of the operational budget. Many companies, however, simply don’t have the knowledge base to know where to start.
That’s where Enstar Energy Services comes in.
Enstar has been helping manufacturing clients save money on energy costs since 1996. Company Founder and President, Don Johns, is a legend in the energy field, having worked at the Michigan Public Service Commission for 22 years before founding Enstar with a group of partners.
A lot has changed with the business over the years but their core mission of providing expert consultation to help manufacturing companies save money on energy costs hasn’t changed at all.
A benefit to MMA members is a free energy consultation from Enstar. After the initial consultation, Enstar offers a variety of services such as brokering lower electricity and natural gas rates, advising on energy rebates and evaluating energy usage for everything from manufacturing processes to HVAC and lighting.
The best part for clients? Enstar gets paid only when the client does.
“We don’t ask anybody to pay anything unless they get something back for it,” says Johns. “So we take on all the risk by doing the work.”
Ryan Schultz, COO of Copemish-based MR Products, can attest to the value that Enstar brings. MR Products manufactures the Mr. Chain brand of plastic chains, stanchions, ground poles and plastic sign adapters used for crowd control and temporary barriers.
“Enstar helped us through the process with Consumers Energy that resulted in a $26,000 rebate,” says Schultz. “They did a great job with us on the (Consumers) rebate, but they have done a fantastic job providing that expert consultation to bounce things off of. And it looks like energy costs are going up, so we’re very happy to have them around.”
Doing a sales tax review is a service that Enstar provides and also one of its biggest opportunities to recoup costs, says Johns. According to state law, all manufacturers are entitled to a sales tax exemption on energy costs associated with manufacturing operations. However, many manufacturers are unaware of the tax break and pay the full 6 percent sales tax.
“(The companies) don’t look at utilities as another purchase, as another product that contributes to their processes,” says Johns. “So, if you’re using $100,000 a month on electric and paying 6 percent, that’s a big chunk of money.” But be aware that only the energy used in the manufacturing process is eligible for an exemption and a detailed review is required to determine that amount.
Whether a company is looking for the sales tax rebate, is looking to cut its energy cost, or just wants a better understanding of their energy usage, Enstar is there to provide that expertise and guidance for a variety of situations.
See Member Benefits to learn more about how MMA members can save with Enstar or contact MMA’s Brenda Nalett at 517-487-8512 or firstname.lastname@example.org.