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The deterioration of the power factor in an industrial setting is almost always the result of running a lot of motors ... that is, a lot of inductive loading. That's corrected by adding utility capacitors across the lines, at the transformer that feeds the industrial plant. The power enters the plant with a big leading power factor, which compensates for all the lagging loading of the motors inside.
Power factor improvement means the power factor has been made closer to 1. If a power station delivers energy to places where the load is significantly reactive (contains capacitative or inductive components) it is expensive for them because they deliver current which actually doesn't do any work. The cosine of the phase angle between voltage and current is the power factor.
Rated power factor
A wattmeter reads the true power of a load, regardless of its power factor.
an increase in imported materials