Case Study

Manufacturer Reduces Electricity Costs by 39%, Saving $250,000 Annually

Manufacturer Reduces Electricity Costs by 39%, Saving $250,000 Annually

The opportunity

Catalyst Acoustics Group (CAG) is a leading group of manufacturers of acoustic, seismic, vibration, and noise control products.

As CAG continued to grow, the organization recognized an opportunity to take a more coordinated approach to energy management. Without a unified strategy across its businesses, individual locations managed their energy needs independently, limiting CAG’s ability to leverage its collective purchasing power and consistently optimize energy costs.

Through our GPO partnership, CAG engaged Tradition Energy to evaluate its energy portfolio and identify opportunities for cost savings. By consolidating energy requirements and applying a more strategic procurement approach, Tradition Energy helped CAG gain greater visibility into its energy spend, capitalize on market opportunities, and establish a more cohesive approach to energy management.

Analysis

Tradition identified contract optimization opportunities that reduced energy costs and aligned each facility with the most competitive supply solution.

Invoice reviews for locations in Illinois and Massachusetts showed both sites were paying well above market rates under expired supply contracts.

In Illinois, our analysis found that utility supply was more competitive than third-party options. In Massachusetts, a third-party electricity contract offered better value.

Tradition advised CAG to return to utility supply for both commodities in Illinois and to secure a new, third-party electricity agreement in Massachusetts, all while managing the supplier transition and overcoming delays from non-tier-1 providers.

The Result:
Delivering Immediate Cost Savings

Optimized Supply Strategy

CAG returned to utility electric supply in Illinois and implemented a competitive supply contract in Massachusetts.

Annual Cost Savings

These actions are expected to reduce electricity costs by 39%, saving CAG approximately $250,000 annually across both states.

No-Cost Assessment

These savings opportunities were identified during Tradition’s complimentary initial assessment through its GPO partnership.

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For decades, organizations have trusted Tradition Energy to navigate increasingly complex energy markets. As the nation’s largest independent energy procurement and sustainability solutions advisor, we bring clients resources, market reach, and transaction activity other advisors cannot replicate.

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