August 2026 Volume 8

ENERGY

ENERGY COST SAVINGS OPPORTUNITIES IN THE FORGING INDUSTRY Why Energy Efficiency Has Become a Competitiveness Issue for Forge Shops By Angela Gibian, CAE

E nergy has always been one of the forging industry’s most important cost drivers. But in 2026, it is no longer just a utility bill to manage in the background. For forging producers, energy now sits at the intersection of cost control, production efficiency, capital planning, customer expectations and long-term competitiveness. Forge shops operate in some of the most energy-intensive corners of manufacturing. Gas-fired furnaces, induction heaters, heat treat lines, compressors, hydraulic systems, pumps, fans, cranes and dust collection systems all draw significant energy. In high Government Funding and Support for Forging Energy Projects For forging companies considering energy-saving projects in 2026 and beyond, several federal programs can help reduce the cost of assessments, planning and implementation. While eligibility varies by company size, project type, location and funding availability, these resources are worth reviewing before a plant funds an energy project entirely on its own. DOE Industrial Training and Assessment Centers The U.S. Department of Energy’s Industrial Training and Assessment Centers, commonly known as ITACs, provide in-depth facility assessments for small and medium-sized manufacturers. These assessments are typically conducted by university-based engineering teams and include a site visit, engineering measurements, process analysis, and a confidential report with recommendations, estimated costs, performance impacts and payback timelines. This can be especially useful for forge shops that need a structured starting point. ITAC assessments may identify opportunities in process heating, compressed air, motors, pumps, fans, waste heat recovery, production efficiency and other plant systems. ITAC Implementation Grants The ITAC Implementation Grants program can help eligible small and medium-sized manufacturers implement recommendations from qualified energy assessments. DOE states that grants of up to $300,000 per qualified recommendation are available for energy efficiency projects.

temperature operations, even small inefficiencies can become expensive quickly. A furnace door left open too long, a burner running out of tune, a compressor feeding unrepaired leaks, or a motor running continuously between production cycles may look minor in the moment, but over the course of a year those losses can add up to real money. The timing for this conversation is important. In 2024, the U.S. Department of Energy announced up to $6 billion for 33 industrial demonstration projects focused on energy-intensive sectors such as iron and steel, aluminum, cement, chemicals, For forging producers, this may be relevant to projects such as compressed air upgrades, furnace controls, variable frequency drives, process heating improvements, waste heat recovery, energy monitoring systems, and other measures identified through a qualifying assessment. Companies should confirm eligibility and current funding availability before applying. DOE Better Plants Program DOE’s Better Plants program is a voluntary partnership designed to help industrial organizations improve competitiveness by reducing energy, water and waste costs. Participating manufacturers typically set long-term energy intensity reduction goals and receive access to technical support, national lab expertise, in-plant trainings, webinars, software tools and recognition. This may be a good fit for forging companies that want a more formal energy management structure across one or multiple facilities. The program can help companies move beyond one-off projects and build a repeatable process for measuring, managing and improving energy performance. DOE 50001 Ready DOE’s 50001 Ready program provides a no-cost pathway for companies to implement an energy management system aligned with ISO 50001, without requiring third-party certification. The online Navigator tool walks facilities through the major elements of an energy management system, including energy planning, performance tracking, operational controls, management review and continuous improvement. For forge shops, 50001 Ready can be useful even if formal

10 FIA MAGAZINE | AUGUST 2026