Australian manufacturers should prioritise energy optimisation over net zero
What happened
A recent CommBank survey found 89% of SMEs reported increased business costs over the past year, with utilities the largest contributor for 66% of businesses. Data from Energy Consumers Australia shows small business electricity bills have risen around 8% nationally in the past year, with some states recording increases above 20%. This matters for MRO & Site Consumables because fresh price movement and input-cost detail should reset bid assumptions, vmi/consignment terms, and negotiation guardrails with 89, 66, 8 as the clearest commercial anchors; expect minimum order changes
Buyer takeaway
For MRO & Site Consumables, treat this as a cost-boundary signal rather than just a headline; buyer assumptions may need refreshing before the next quote or award decision
Cost / money
Use this to refresh should-cost views and challenge any fast repricing. Keep the read-through directional unless the source itself provides hard commercial numbers
Supplier / commercial
Suppliers with fresh cost justification may push harder on reopeners, indexation, shorter quote validity, or pass-through language. Buyers should separate real drivers from negotiation posture
Safety / operations
The operational risk is indirect: tight budgets or repricing battles often reappear later as reduced slack, substitutions, or execution compromises that buyers then have to manage
What to watch
Watch for shorter quote validity, reopeners, pass-through requests, or attempts to reset pricing on the back of weak evidence
Key facts
- A recent CommBank survey found 89% of SMEs reported increased business costs over the past ye
- Data from Energy Consumers Australia shows small business electricity bills have risen around
- “We regularly see 20–30% energy savings sitting there because no one has done a proper site w
- DETA identified opportunities through an energy audit and carbon roadmap to save 4033 tonnes
