Why One-percent Efficiency Gains Matter More Than You Think

Energy and manufacturing leaders must find a way to remain profitable in industries shaped by economic headwinds, regulatory pressures and geopolitical uncertainty. In this climate, large-scale transformations may feel out of reach — but even the smallest steps can help.

A one-percent operational improvement can unlock impressive financial and operational gains with minimal disruption.

At its core, the idea is simple: Improving one process or outcome by just one percent can generate a meaningful impact across an entire organization. And for sectors where margins are tight and downtime is expensive, that tiny bit of optimization can make all the difference.

One of our manufacturing customers, a confectionery company, faced compliance challenges with product weight. Occasionally, air in the packaging would alter the net weight, leading to overfilling just to meet regulations. Rather than increase product quantity blindly, we helped the company to implement Internet of Things (IoT) sensors and machine learning in their process to fine-tune fill levels.

This one-percent improvement in weight precision led to $74,000 in daily cost avoidance, totaling about $27 million annually.

Of course, there are other ways a manufacturer might implement a one-percent difference:

• One-percent reduction in defects using artificial intelligence (AI)-powered visual inspection, improving customer satisfaction and cutting rework.
• One-percent improvement in cycle times across high-speed production lines, increasing throughput without new capital investment.
• One-percent better inventory accuracy, reducing overstock and waste using real-time tracking technologies.

The energy sector, particularly oil and gas, is also ripe for one-percent improvements. With oil prices fluctuating and environmental, social and governance (ESG) pressures growing, companies are scrutinizing every operational detail. While the margins may be slim, the scale is massive — so even the smallest gains will add up quickly.

Here are some ways the energy sector might incorporate a one-percent difference:

• One-percent better drilling precision via advanced analytics and real-time feedback can lead to hundreds of extra barrels per day.
• One-percent increase in equipment uptime through predictive maintenance reduces unplanned outages, saving millions in lost production.
• One-percent improvement in energy efficiency across refineries or compressor stations lowers fuel costs and carbon emissions.
• One-percent boost in yield optimization, such as fine-tuning catalytic cracking processes, can deliver more product from the same input.

These types of improvements are typically driven by smart instrumentation, edge computing and digital twins — technologies that can help companies make decisions in real time based on operational data.

In the utilities sector — especially electric, gas and water providers — incremental improvements can deliver wide-reaching benefits. With growing regulatory demands, aging infrastructure and rising customer expectations, utilities must innovate carefully but effectively.

Here are a few ways a one-percent improvement could create value for utility companies:

• One-percent reduction in line losses through advanced grid monitoring and real-time fault detection, improving energy delivery efficiency and reducing wasted power.
• One-percent improvement in demand forecasting accuracy, enabled by AI and smart meter data, helping utilities optimize energy purchasing and generation.
• One-percent faster outage restoration times through automated fault location and rerouting, leading to better service reliability scores and reduced penalties.
• One-percent improvement in asset utilization (such as transformers as substations) through predictive maintenance, extending equipment life and avoiding early replacements.

At CDW, we understand that real transformation often starts with small, strategic moves.

Whether it’s enabling predictive maintenance in oil and gas, optimizing production lines in manufacturing, or deploying analytics at the edge, we help organizations uncover the one-percent opportunities that drive measurable impact.

With deep industry expertise, a robust ecosystem of technology partners, and a practical approach to digital modernization, CDW is here to help you turn incremental improvements into a lasting competitive advantage