Sustainability and the green supply chain: Crescent/Stonco and energy efficiency

Get a new lease on lighting, lower your utility bills and polish your green bona-fides. Crescent/Stonco, a provider of industrial lighting solutions, is tapping into that convergence with something the company calls the Stonco Warehouse Energy Program.

Latest News

State of Logistics 2016: Pursue mutual benefit
California exports sustain traction
UniCarriers Americas sponsors local high school event to promote interest in STEM careers
Safe Fleet acquires Randall Manufacturing
U.S. carload and intermodal shipments are mixed for week ending January 14 reports AAR
More News

Latest Resource

Lead your organization through the driver shortage and over-the-road regulations.
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity.
All Resources
By ·

After covering the materials handling industry for about 25 years, the most exciting developments to me have been the convergence of other disciplines with our industry. First there was automatic data collection, with barcode scanning, voice and now RFID. That was followed by an increased emphasis on software-based solutions and now web-based solutions. And over the last year, I’ve begun to see the convergence of what we do in the DC with broader corporate initiatives, including sustainability, or green supply chain. At NA this year, there were solar panel and energy efficient lighting displays tucked in between the lift trucks and conveyors. 

Crescent/Stonco, a provider of industrial lighting solutions, is tapping into that convergence with something the company calls the Stonco Warehouse Energy Program. “We’re finding there are a number of DC owners that want to reduce their total energy consumption or manage the total energy in their facility,’ says Bill McShane, director of sales. That’s because lighting and heating can account for up to 70% of the electricity use in a facility, according to McShane. The challenge is that DC managers are in the business of moving materials, not turning down the thermostat or flipping off light switches, so to speak. What’s more, capital budgets are frozen: Brother, can you spare a Cap Ex dime could be the mantra at most companies. 

That’s where the Stonco program comes into play. The company and its partners will redesign your heating and lighting systems and lease them back to you through a banking partner with money to lend. There’s a unique concept. Think of it as a 3PL for energy management. The goal is to reduce energy consumption by as much as 50% by installing new energy efficient lighting and HVAC systems; earn a one-time Federal tax deduction (and possibly state and local deductions as well) of from $1.20 to $1.80 per square foot as a result of the Energy Policy Act of 2005 – a program that has been extended until 2013; and finance 100% of the project through a banking partner.

Here’s how it works: The program is an alliance of four partners: Stonco Lighting provides the lighting, Cambridge Heating provides the HVAC, De Lage Landen the financing and Energy Tax Savers, a green tax firm, helps participants achieve Federal tax incentives aimed at making energy efficient investments as economically viable as possible.

“There are no upfront fees and the total payment for utilities and because we design specifc lighting products to go into these facilities, you get a system that’s designed properly for optimization,” says McShane. “If we can reduce your utilities by 50%, the lease payment and your utilities bills will be less than they’re paying now just for the lighting and heating.”

Those systems include not just the light fixtures and bulbs or the heating unit, but sensors and controls to only illuminate or heat and cool sections of the warehouse when there is activity. Lease terms can last from 12 to 60 months, and at the end of the lease, the warehouse owns the system.

Why now? For the same reason that many companies are leasing their lift trucks, outsourcing their distribution to third party logistics providers and even contemplating the leasing of automated materials handling systems. “If capital budgets are frozen, there’s no way to upgrade a DC,” says McShane. “Through a lease, you can improve your building, tout your green bonafides and do it without dipping into capital reserves.”

McShane adds: “People are looking for the catch, and there isn’t one. We can quantify the savings.”


About the Author

Bob Trebilcock
Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Lead your organization through the driver shortage and over-the-road regulations.
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity.
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....