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.
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.
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.
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.