According to a recent report in Business Insider, Apple has more cash reserves ($159 billion) than most major nations, including the US and other industrialized nations. It’s not only Apple. Major manufacturers, like Pfizer, Coca Cola, Amgen, Johnson & Johnson, and both General and Ford Motors, each have cash reserves of at least $20 billion. Now, I’m not an investor or an expert on economics, but I suppose this means that this cash can only be making a few percent in interest at best. Isn’t there something that can earn more for companies for this cash and be more productive, too?

One answer is energy. Several recent polls have shown that while many companies and municipalities are “looking into” studying and implementing energy upgrades, most do not follow through. The reasons appeared varied, such as not finding the right internal champion, availability of funds to invest, and finding the right practitioners. But, with cash reserves of many companies overflowing and new, proven energy-saving technologies and strategies growing, energy upgrades should become a high priority.

This is not a new-fangled idea. Many companies have invested in energy upgrades and the benefits are being studied. A McKinsey study (McKinsey Insights) showed that US companies have the potential to invest $3.4 trillion in energy upgrades at an average internal rate of return of 17%; much better than cash reserves sitting in a money market!

OK, I understand your skepticism. After all, this is an average of many thousands of corporations. How may this apply to you, so you be ahead of the game? One good way to start is to begin by concentrating on lighting. There has been a revolution in new lighting types in just the last few years. Lamps that create better quality light using less than half of the electricity of standard incandescents and T12s. Simple and savings begin right away. Add in automated sensors to turn off or dim lights when not needed, and you can save even more electricity. IRRs much better than 17% can be achieved by upgrading lighting – if you do it right. Planning and knowledge of vendors are critical to maximize savings. Use outside firms who are experienced in lighting and energy. Then your company can use the savings to invest in other cost-saving energy areas.

And there are other benefits, as well. Improved lighting has been shown to improve productivity and general mood of workers. There are fewer mistakes, reduction of risk, and sick days. Upgrading and automating mechanical systems can free your labor force to focus on jobs meant to be done: additional financial benefits for your bottom line.

CCES has the expertise to help you develop a smart energy program to invest in lighting and other energy upgrades for the highest return on investment and maximize the other benefits. We know the approach and the vendors to ensure financial success and reliability. Contact us today at 914-584-6720 or at karell@CCESworld.com.