Energy struggles in certain industries

24th Aug 2023 | Mollie Pinnington | 3 minute read

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In the face of soaring energy prices last year, numerous businesses found themselves grappling with devastating financial impacts. This was felt most in the farming and agriculture sectors. A traditionally energy-intensive industry, farming operations became tremendously costly, with many struggling to navigate the harsh economic terrain. The burgeoning energy crisis marked a period of profound struggle for those in agriculture, as they grappled with maintaining business viability amidst skyrocketing operational costs.

Struggles within the farming sector.

The fallout from high energy prices continues to wreak havoc in the agricultural industry even today. The sector, already dealing with the challenges of unpredictable weather patterns and rising production costs, is now grappling with the additional burden of high energy costs.

As a result, many farms have had to scale back operations or, in extreme cases, shut down completely. This aftermath of the energy crisis threatens not just the viability of individual farms but also the stability of global food supply chains.

On top of the soaring energy prices, farming businesses have also been hit hard by disruptions in the global market. The cost of raw materials, machinery parts, and other necessities has seen a significant increase. Global supply chain disruptions, primarily due to the ongoing pandemic, have led to a scarcity of essential farming equipment and inflated prices. This has compounded the financial distress in the farming sector. Farmers are left navigating a daunting maze of operational challenges, that not only threatens their business continuity but also has profound implications for global food security.


Fallout in Manufacturing and Transport Sectors

Farming is not the only sector left reeling in the face of escalating energy costs. The impact resonates intensely in the manufacturing and transport industries as well. In manufacturing, where energy consumption is pivotal to the operation of heavy machinery and fabrication processes, heightened energy prices can significantly inflate production costs. This, in turn, leads to a rise in the prices of manufactured goods, affecting the market balance and competitiveness of manufacturers.

Similarly, the transport sector, with its substantial reliance on fuel, has seen its operational costs surge. Companies with fleets of vehicles are hit especially hard, as higher fuel prices translate directly into inflated costs for logistics and delivery services. This destabilizes the equilibrium in the transport industry, with many businesses forced to reevaluate their strategies or risk insolvency. Hence, these sectors, much like agriculture, are grappling with the ongoing challenges of the energy crisis.


Mitigating the Energy Crisis

The energy crisis surely has caused disruption to numerous industries, but it is not without solutions. There are a number of steps businesses can take to mitigate the impact of high energy costs and ensure business continuity in these turbulent times.

For instance, farms can seek alternative sources of energy, such as solar power or wind energy. These renewable and sustainable energy sources can significantly reduce reliance on traditional forms of energy, leading to substantial cost savings over the long term. By installing solar panels or wind turbines, farms can generate their own power, effectively insulating themselves from fluctuations in traditional energy prices. Moreover, excess power generated can be sold back into the grid, providing an additional income stream for the farm. Harnessing renewable energy not only makes economic sense but also aligns with global efforts to combat climate change, making it a win-win solution for farms grappling with the energy crisis.


Keeping on top of energy bills

One effective strategy businesses can use to mitigate their energy bills is to actively compare energy prices. In an era where everything is going digital, businesses can leverage online platforms like Online Energy to monitor and compare energy prices.

Our platform provides a comprehensive overview of different energy suppliers, allowing businesses to choose the most affordable and efficient energy solutions for their operations. Regularly comparing energy prices can keep businesses ahead of fluctuating energy markets, enabling them to make informed decisions that can significantly reduce their energy bills. Thus, businesses should not overlook the potential benefits of staying on top of their energy costs through regular price comparisons on platforms like Online Energy.

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