Major Energy Efficiency Gains, Annual Returns, Job Creation Possible With Greater Use Of Mechanical Insulation

The National Insulation Association (NIA), a not-for-profit trade association, has released more evidence on the advantages of Mechanical Insulation that the Mechanical Insulation Industry Professionals have long touted … “Even a modest increase in the use of energy-efficient mechanical insulation would allow the United States to quickly generate significant energy demand reductions in the industrial sector, create tens of thousands of green jobs, and help cut the nation’s greenhouse gas emissions,” according to the (NIA).

The NIA report states that it and its partners estimate that mechanical insulation could deliver annually $3.7 billion in energy savings and reduce 37.9 million metric tons of carbon emissions, with a return on investment in 11.3 months (106 percent annual return) from simple maintenance of mechanical insulation in industrial/manufacturing plants.

NIA estimated this maintenance work would create over 27,000 jobs per year for insulation contractors, of which 90 to 95 percent are small businesses, in all 50 states. Those 27,000 jobs support other industry channels with job opportunities of more than 13,000, bringing the total job creation opportunity to 40,000. NIA also noted that 95 percent of materials required for these opportunities are made in the United States.

MIIP agrees that these findings once again confirm that mechanical insulation is truly an overlooked and undervalued technology. The report also bolster’s MIIP support for the passage of U.S. House Resolution 2866 and U.S. Senate Bill 1526, “Mechanical Insulation Installation Incentive Act of 2011,” to amend the Internal Revenue Code to allow additional tax deductions for the cost of installing mechanical insulation. (Check out the MIIP blog post on these bills.)

The data for the study was collected from the U.S. Department of Energy’s Save Energy Now program, which MIIP notes provides many case studies that support the use of mechanical insulation.

The Value of Insulation: Goodyear Saves Money with Insulation

A recent U.S. Department of Energy report shows that a Goodyear Tire plant in Tennessee saved $875,000 in energy costs and reduced natural gas consumption implementing a program that greatly incorporated improved insulation – supporting a basic but vital fact that the Mechanical Insulation Industry Professionals strongly supports: Mechanical insulation saves money!

“Once the insulation project is completed, the company will have reduced its natural gas use by 93,000 MMBtu and No. 6 fuel oil consumption by 224,000 gallons—for a total annual savings of more than 127,000 MMBtu and nearly $875,000 in energy cost savings.”

Interestingly, Goodyear chose to implement an opportunity out of several that would yield the greatest energy savings – the plan that included insulation. The report says that the plant improved its boiler operation and load management strategy and then insulated their process equipment.

Check out the report on the MIIP Research page.