May 7 - McClatchy-Tribune Regional News - Thomas Content Milwaukee Journal Sentinel


Businesses are holding back from investing in energy efficiency because of a lack of capital, the uncertainty about global warming legislation and the direction of energy prices.

Those are some of the conclusions in the third annual Energy Efficiency Indicator survey commissioned by Johnson Controls Inc. and the International Facility Management Association.

The survey, released Wednesday, is designed to gauge attitudes of North American executives responsible for energy in their organizations. More than 1,400 executives were surveyed.

"One key element that has come out of the survey this year is really a comment on where we stand around economic challenges and the ability to spend," Dave Myers, president of Johnson Controls' building efficiency business, said during a webcast discussing the study. "We are clearly seeing signs of a hold-back of investment" in energy efficiency.

Compared with last year's survey, there's a 10% drop in organizations expecting to spend this year on energy efficiency from capital budgets, and a 6% drop in commitment to spend on energy efficiency from operating budgets.

"This is very indicative of the economic climate that we're in," he said.

At the same time, more companies are making commitments to reduce their carbon footprint, and targeting energy efficiency in buildings is a key strategy, Myers said.

The survey found 71% of business leaders are paying more attention to energy efficiency than they were one year ago. Some 58% responded that energy management was extremely or very important.

But there's a lot more talk than action about boosting energy efficiency, the survey found.

Other factors also are holding back spending, among them: uncertainty about the direction of energy prices and uncertainty over the kinds of energy efficiency incentives that could emerge in energy and carbon legislation being considered at the national and state levels.

"That's why we're seeing the action side of energy efficiency slowing a bit," he said.

But Myers and other Johnson Controls executives said they expect a surge in spending on energy efficiency and renewable energy as companies finish sorting through the level of federal stimulus funding their projects could receive.

The companies also highlighted several case studies that showcase the cost-effectiveness of energy-efficiency projects. That includes Manpower Inc.'s corporate headquarters in Milwaukee and the energy-efficiency upgrades under way at the Empire State Building.

The Empire State Building project in particular has gotten so much attention that it's expected to spawn more projects at other large office buildings, said Clay Nesler, vice president of global energy and sustainability at Johnson Controls.

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