Bluescope Stat Bar

BlueScope Buildings is the business unit that produces steel building systems for the two preeminent brands delivering turnkey construction solutions in North America: Butler Manufacturing and Varco Pruden Buildings.

The Plant Manager identified that lighting accounted for approximately 40% of their electric consumption. When he ran into Corporate CAPEX restrictions, that’s when he teamed up with Ally Energy to structure a cash flow positive, off-balance-sheet operating lease structure with their existing equipment leasing company to fund the lighting retrofit. Upon completion, he fielded a call from his utility representative concerned they had shut down a shift at the plant after looking at the steep drop in their monthly demand.

While cutting costs was a primary motivation, if they could improve the work environment for their employees at the same time, all the better. Lastly, as their market rebounded from the recession, they couldn’t afford interruption of operations, and internal competition for capital was extremely tight. Based on these conditions, the Ally team designed and implemented the following project beyond expectations:

  • Installed prismatic domed skylights over the weld bays, providing natural daylight and improving productivity and safety while reducing errors.
  • Installed combo motion- and photo-sensors, increasing savings and increasing rebate to 30% of the project cost.
  • Structured cash-flow-positive, off-balance-sheet operating lease.
  • Worked a night shift and managed the install schedule around key plant activities.
  • Replaced 1000w metal halide fixture design with modular LEDs with a spec that protects the driver from heat and is easy to maintain in a gritty environment

Project Highlights

$108,072 Rebate Amount
$137,338 Annual Savings
$608,158 Net Present Value
Immediate Simple Payback