As the energy landscape evolves, plant managers are tasked with a delicate balancing act – adopting cutting-edge technologies while keeping costs low and operations running smoothly. It's a daunting challenge, but one that can be overcome with the right partner. In this blog post, we'll explore how a leading consumer packaged goods manufacturer empowered its plant managers to embrace the energy transition through a strategic partnership with Sparkfund.
Flexible Financing for Lighting Upgrades
At one of the manufacturer's facilities, plant managers needed to retrofit over 2,000 lighting units with energy-efficient LEDs. However, they faced a significant hurdle – their preferred vendor only accepted cash payments, and the project carried a hefty $1 million price tag. Enter Sparkfund. By leveraging Sparkfund's financing and subscription capabilities, the vendor could offer a menu of payment options, including cash, financing, and a subscription model with pro formas, cash flow analysis, and functional guarantees.
The plant managers opted for an 84-month subscription contract, allowing them to work with their trusted vendor while unlocking a turnkey, quality-assured deal. The result? A 45% reduction in energy consumption and nearly $2,000 in positive annual cash flows.
Tackling HVAC Upgrades with Precision
At another facility, plant managers faced a different challenge – replacing 37 non-compliant HVAC units while meeting strict monthly payment targets. Sparkfund stepped in, conducting an on-site audit and launching an invitation-only RFP to identify a high-quality, low-cost provider.
Through meticulous financial structuring and cost optimization, Sparkfund presented the plant managers with three payment scenarios. The chosen solution? An 84-month subscription plan with a monthly payment of $18,658.43, resulting in 22 new, efficient units, remote performance monitoring, fixed repair and replacement costs, and proactive maintenance support.
Conclusion:
By partnering with Sparkfund, the leading consumer packaged goods manufacturer empowered its plant managers to navigate the energy transition with confidence. Through flexible financing options, turnkey solutions, and a deep understanding of plant operations, Sparkfund enabled the manufacturer to optimize its energy investments, reduce costs, and focus on core business activities.