Notwithstanding advances in logistics, just-in-time manufacturing processes, and distribution networks, warehouses remain a critical part of the supply and distribution network for industrial, commercial, and consumer products. Warehouse operation can make or break a business. For many companies, it’s the bottleneck that slows down their customer fulfilment process.
In this new environment, warehouse operators are under constant pressure to reduce their costs and to help manufacturers and shippers to store and deliver raw materials and finished goods at the lowest possible prices.
Warehouse cost savings are typically achieved through reduction of overhead costs, and the most direct way to reduce those costs is with more efficient warehouse lighting. Warehouse lighting accounts for fifty to seventy-five per cent of a warehouse’s electricity consumption.
Therefore, the warehouse manager should exploit every opportunity to improve warehouse efficiency. One such opportunity is LED lighting. Here are three reasons to change your warehouse lighting to LEDs:
LED warehouse lighting generates the same or better quality light typically with less than half of the average electricity consumption as legacy lighting fixtures.
LED lighting is similar to daylight except that it doesn’t have the harmful UV levels of sunlight.
Increases Worker Productivity:
LEDs create a more productive and safe work environment by allowing workers to see more clearly with proper lamp placement and better light uniformity over other lighting fixtures. LEDs are much easier on the eyes and do not have the flickering that can be experienced from fluorescents, which has been linked to many negative side effects, such as headaches and increased stress, in workers.
As there can be so many high-bay fixtures in a warehouse, regular management and replacement is typically required, but an LED warehouse lighting fixture will continue to generate light at or near full capacity for 50,000 hours, and in some cases for up to 100,000 hours of continuous use. This durability reduces warehouse lighting maintenance and repair costs, as well as down time associated with interruptions in warehouse operations while lighting fixtures are repaired or replaced.
LED warehouse lighting also improves the overall safety and efficiency of a typical warehouse operation. Modern warehouses are fast-paced and always busy. Poorly-lit warehouses slow down these operations and bad lighting increases the risks of errors and accidents.
LED light is white and brighter per watt consumed than other commonly used lighting. This is particularly important in a warehouse environment because product picking errors are costly in terms of customer returns and lost business. A well illuminated warehouse is important for avoiding injuries where forklifts and workers on foot work side by side.
Reduced heat output:
When LEDs are turned on, they don’t emit any heat- this isn’t just a safety advantage but also saves on cooling costs. This is great for refrigeration warehouses where it makes it easier to maintain optimum steady refrigeration temperatures. It is also estimated that facilities can save up to 20% on other utilities, as high bay LEDs will decrease the need for air conditioning.
Since a commercial lighting retrofit for warehouse lighting can be more extensive than it is for other facilities, costs will always be a concern. However, when long-term savings are factored in, the financial benefits become readily apparent.
Commercial retrofits may have high upfront costs, but the project pays for itself after a few years, and almost every state offers rebates and incentives for new construction and retrofitting to help offset some of those costs. Facilities can save up to 80% on electric bills compared to other lighting alternatives, and possibly even more if combined with smart sensors.
A recent study conducted in a distribution centre found that LED fixtures, coupled with aggressive lighting controls, led to significant energy savings. In that study, which was done in a nearly 45,000-square-foot warehouse, the return on investment (ROI) was calculated at 3.6 years. Just as important, there was a 93% expected decrease in annual energy consumption as a result of the retrofit.
Warehouse operators will typically recover all of the costs of a transition to LED warehouse lighting in under two years.
So, what can you do with your savings?
Contact us today and learn how LED lighting can save your business money on multiple fronts.