Case Study: Jerl Machine

Facility type: Distribution Center, Perrysburg, Ohio

Work Performed: Lighting Renovation

Background
Since 1975, Jerl Machine has provided precision metalworking and machining for a diverse group of industrial and manufacturing customers. They take pride in employing highly skilled toolmakers and engineers, investing in state-of-the-art technology, and fostering an environment of continuous improvement. Jerl Machine’s core competencies include large part machining, CNC turning & milling, bending, welding, and major component sub-assemblies. The company is also committed to offering environmentally sound, sustainable, and innovative solutions that continually reduce the impact on the environment and considers energy efficiency a cornerstone of their green strategy.

Situation
In 2014, Jerl Machine was interested in identifying ways to reduce energy consumption while improving the quality of light for added safety and a better work environment for their toolmakers and engineers at their Perrysburg, OH manufacturing facility. Specific goals with respect to energy savings, project payback, and light levels were paramount to the project.

Solution
The energy efficient lighting project incorporated Induction high bay fixtures that were designed to better distribute light in the manufacturing area. The current high bays were 400W metal halide fixtures that operate on 480 volts. They had challenges trying to find a lighting solution that would not only provide better illumination in the plant, but also provide energy savings. Jerl Machine had tried LED high bays and found that those did not deliver the light levels they were looking for. We suggested 200W induction high bays that are visually great for manufacturing applications and have a superior warranty versus the LED lights. Our recommended induction solution also features a 480 volt supply option that was necessary in this setting. This was very helpful in reducing load as it operates 24/7 during the year. The solution was not simply a one-for-one fixture upgrade but was based upon an engineering grade audit conducted prior to project implementation. The audit led to a comprehensive plan to redesign the lighting which eliminated unnecessary fixtures in order to maximize energy savings while meeting all lighting quality and safety objectives. We also were able to retrofit their 8ft. T12 fluorescent strips above the machining equipment with LED plug and play lamps in 6500K color temperature. After the changes, we have received rave reviews from staff that can now see their workstations better, which allows them to provide better accuracy in manufacturing. Both the design/audit and implementation phases were performed by Wholesale Lighting LLC.

Results

The project exceeded the client’s expectations in regards to reductions in energy consumption over the first year.

Annual Operating Savings (Energy & Maintenance) - Estimated at $57,682.00 per year

Annual Consumption Savings – Estimated at 535,796 kWh per year

Reduced Billings

Coupled with $42,000 in rebates earned from a rebate program offered by local utility provider Toledo Edison, the project delivered total energy savings of $57,682.00 for the first year. This project also allowed Jerl Machine to qualify for a substantial tax deduction of $48,400 under federal EPAct laws, which accelerated the total project payback period to less than 6 months.

Payback Period (yrs)0.8
Net Present Value ($)390,995
Internal Rate of Return 230.47

Facility Type:

Distribution Center

Square Footage:

80,000 SF

Products

  • Induction High Bays
  • LED T8 Plug and Play Lamps

Savings

$57,682.00 Annually

Incentives

  • $42,000.00 rebate from Toledo Edison
  • $48,400.00 tax decuction under federal 179D Epact Laws