Energy-Efficient Technology: A Win-Win For Manufacturers And ConsumersForbes, November 6, 2014
The next time you are riding down on an elevator, consider whether it captured any of the energy potential created during the descent. If you are in a new elevator from Otis—a subsidiary of United Technologies Corporation(UTX), the largest producer of elevators, escalators, and moving walkways in the world—the machine may be using the energy generated when lowering the elevator car to generate the power to help pull it back up. It’s a small amount of the power used in a major building each day, but just one example of a wave of energy-saving technologies driven by industrial companies.
“When it comes to energy innovation, you commonly hear about wind and solar,” says Tobias Welo, manager of Fidelity® Select Industrials Portfolio. “A lot of energy innovation is coming from the consumption side of the equation, and I don’t think the industrial companies are getting the credit they deserve.”
According to Welo, there are two powerful forces propelling advances in industrial energy efficiency. Consumers are deeply invested in reducing energy consumption. Many of the new devices can reduce energy bills so much that they pay for themselves in just a few years. At the same time, manufacturers are being held to higher standards by regulators, and are trying to outperform competitors by providing a powerful incentive to improve performance.