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How 'lighting as a service' can help manufacturers cut costs

Graeme Shaw, technical application and academy manager at Zumtobel Group

Lighting as a service gives businesses access to expert advice on the best lighting solutions for their needs
Lighting as a service gives businesses access to expert advice on the best lighting solutions for their needs

Analyst insight into the UK manufacturing sector paints a picture of strong current performance ahead of critical strategic challenges.

Brexit dominates the headlines, but it is far from the only hurdle on the horizon.

A recent Pricewaterhouse-Coopers report points to the need for manufacturing businesses to invest continuously in their plant and operations to remain competitive and to secure long-term stability. It concludes that better management of working capital is key to generating the necessary cash for investment.

As we enter the fourth industrial revolution there is clearly pressure on manufacturing businesses to assess legacy operations and rethink legacy processes. Historically not a major consideration for the sector, leaders are now embracing the new idea of light as a service (LaaS), whereby the future performance of the lighting solution is ensured by the supplier and no capital outlay is required.

The LaaS model enables manufacturing companies to look far beyond what would otherwise be possible without such a financing model in place. Put simply, businesses can upgrade the way in which light is used within their environment and pay for it using savings generated from day one of installation.

Tailored for purpose

Manufacturing covers a broad array of processes, many of which impact – or are impacted by – the operational environment. Our dealings with the sector have revealed numerous specific lighting challenges. 

The pharmaceutical industry provides a case in point. Many pharmaceutical products are light sensitive and will degrade under the wrong kind of light. In turn, lean manufacturing processes emphasise increasing efficiency and reducing waste. Here, high-quality LED lighting is assisting with product inspection and quality control. 

The LaaS model delivers immediate and ongoing access to lighting industry experts who have the experience and depth of knowledge to suggest best-fit lighting solutions. Light can be tailored to suit a client’s specific needs.

Maintaining excellence

The future-proofing advantages of LaaS are critical. Without such a model in place, every technological advance would require significant capital expenditure. Light as a service provides buyers with the necessary consultative expertise to enable them to stay a step ahead, allowing them to benefit from LED technology – and future developments – without the hassle of owning and operating the lighting solution themselves.

Every day an obsolete lighting system is operating it causes unnecessary extra costs – through excessive electricity consumption, high failure rates and high maintenance charges. Doing nothing is expensive.

Time to switch

Changing any purchasing and business model requires careful assessment. However, moving to LaaS now can lead to immediate savings and result in a model that normally pays for itself from day one.

Everything associated with lighting – from design through to regular maintenance – will be handled by the expert provider, enabling manufacturing leaders to focus on core tasks. Once installed, transparent remote monitoring helps to achieve the agreed aims regarding illuminance and energy efficiency and to quickly identify opportunities to adapt and enhance usage patterns. 

Adjusting lighting to individual specific needs and implementing new functions isn’t a one-off task, but rather continues throughout operations. Possibilities for optimisation – in quality, efficiency and functionality – are constantly monitored.

LaaS arrangements allow future cost savings to be harnessed to pay for today’s digital technology upgrades. Such arrangements are gaining attention precisely because they enable investment without capital commitment, moving the business model from buying technology to paying for access to that technology.

Combining smart financing and smart technology can accelerate investment in the smart manufacturing environment.


Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.
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