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A timely message for World Manufacturing Day: Switching to electric is only half the job

A timely message for World Manufacturing Day: Switching to electric is only half the job

Mon, 28th Sep 2026 (Today)
Troy Burgess
TROY BURGESS Head of Applied Business Daikin Australia

I've been thinking a lot recently about an assumption that many in our industry seem to take as gospel. 

Australia is making important moves towards net zero, with positive initiatives that are accelerating the switch from gas to electricity. But the reality is we won't instantly hit net-zero when every building runs off electricity. 

I understand why electrification gets treated as the finish line. It's measurable and with state-based regulations pushing new builds and renovations down that path, it's front of mind for good reason. But I've spent most of my career in Commercial Sales and I think we're at risk of mistaking the entry ticket for the destination. 

The truth is, it's how electric systems perform every day for the next twenty years and beyond that will help decarbonise our buildings and our country. And it's a concept worth unpacking for this year's World Manufacturing Day. 

The above statement is particularly true of heating ventilation and air conditioning (HVAC) systems which account for up to 50% of a commercial building's energy use and dominate peak electricity demand, according to the Australian Government1. HVAC also comprises a high portion of overall building costs, making these systems one of the biggest remaining levers for cutting operational carbon levels.

Improving HVAC efficiency isn't just good for the buildings our equipment ends up in, it has a real impact on our own bottom line and reputation as manufacturers too. Ratings systems, such as the National Australian Built Environment Ratings System (NABERS), give building owners a benchmark to understand their performance against comparable buildings in the same sector. Ratings like these are fast becoming a reflection of how well we've done our job.

So why doesn't switching to electricity solve the problem on its own? Because a well-built system that's poorly controlled will underperform for years without anyone noticing. 

Energy bills don't explain why the costs are high and I've seen plenty of technically excellent equipment wasting energy because nobody was monitoring how it actually operated once occupants moved in and usage patterns changed.

The mistake I see manufacturers making most often is treating this as a single-component problem. Efficiency is really achieved at the system level, with air handling units, fan coil units, chillers, heat pumps and controls all working together. Get that concept right and a building can cut its carbon footprint for its whole life. 

This is why modern HVAC systems have an edge for users. When compared to conventional HVACs that operate with limited visibility, newer systems built with onboard digital controls can continuously monitor and manage each section of the unit. This intelligence means more precise airflow and ongoing optimisation as building usage changes over time, enabling a better match of ventilation demand with occupancy needs, reducing unnecessary energy consumption while maintaining occupant comfort. 

Better systems still need to be backed by proof, which is why verification is also important for manufacturers to consider. The independent Eurovent certification on our locally manufactured Air Handling Units is one reputable source that validates system performance, giving consultants and building owners verified data on thermal performance, air leakage, thermal bridging, heat recovery and overall energy efficiency. Compared with lower-performing systems, high-efficiency Eurovent-certified solutions can significantly contribute to the reduction of the building's annual energy consumption, lower operating costs and substantially decrease Scope 2 and Scope 3 carbon emissions. 

It's also worth encouraging building managers to look beyond the HVAC systems itself. Improving building insulation, using high performance window glazing, encouraging natural ventilation and painting roofs white or with special reflective coatings to create 'cool roofs' can all help significantly decarbonise your building. These upgrades are especially important for hotter inland climates and for large, flat buildings like factories and warehouses.

Australia's building sector has made real progress getting comfortable with electrification, and that shift is genuinely worth the momentum. But it's just one part of a bigger picture. 

So I hope on this World Manufacturing Day you can take a moment to reflect on our role as manufacturers, not just in what we build but in how well it performs after it leaves the factory floor. That ongoing responsibility is the key to achieving sustainability and lowering business overheads.  

Sources

  1. HVAC, Australian Government, Department of Climate Change, Energy, the Environment and Water.