Embracing sustainable and green principles is not just a trend. Cultivating such practices helps organizations become more efficient, competitive, and profitable. It’s more than simply a good thing to do. Manufacturers are realizing the many short- and long-term financial benefits from implementing environmentally conscious improvements.
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The difference between sustainability and ‘going green’
Going green is not the same thing as sustainability, albeit they are related. The terms are often used interchangeably; however, green is more frequently associated with a single product or process. Examples include improving a specific operation so that it doesn’t harm the environment, or creating a product made entirely out of recycled materials.
Sustainability is typically associated with an organization’s holistic approach; it takes the entire production process and logistics into consideration. For example, you might purchase a product made out of recycled goods, but if it was made overseas and environmentally harmful methods were used to transport it to the United States, you wouldn’t be adhering to sustainable principles.
Targeted improvements can help your company, but by looking at the bigger picture, you can identify where to implement green and sustainable practices and benefit from the perks of an environmental focus. Here are five ways that green and sustainable practices positively influence your organization:
1. Reduce energy-related costs
Energy and water costs are a prime concern for manufacturers. Reducing these expenses are realized as annual savings as opposed to quicker, short-term cost reductions.
Switching to energy-efficient lights and adjusting lighting levels in accordance with the production schedule reduces long-term electrical costs. Regularly inspected equipment runs at peak efficiency, which further reduces costs. Consider how you package products and supplies. Is there waste in overpackaging? Can a packaging change free up space at your facility? Implement a recycling program. Go paperless. Look around your work area, and you will see ways to reduce waste.
2. Attract new customers and increase sales
Green and sustainable practices can make your company more marketable. Consumers are more conscious of the environment, and making improvements will strengthen your reputation. Whether you’re an OEM or a supplier, making your green and sustainable practices known to the public will help you attract a whole new base of customers and increase sales. This is important for manufacturers seeking government contracts where green manufacturing standards are often a factor.
Technology and social media have enabled buyers to easily (and publicly) promote or criticize companies for their green practices, or lack thereof.
3. Tax incentives
There are a variety of tax credits and rebates on federal and state levels for manufacturers that proactively implement more sustainable improvements. There may be incentives available to your business. Check out the websites for the U.S. Department of Energy and the Database of State Incentives for Renewables & Efficiency (DSIRE).
4. Boost workforce morale, and innovative ideas will follow
When sustainable improvements are created from a enterprisewide collaborative effort, it fosters a culture of teamwork and continuous improvement. Employees work harder when they are engaged and have a sense of pride in their company. Internally communicating the importance of the improvements and the effect they are having on the business and environment will ignite innovation. For example, if you challenge your engineers and machinists to reduce material scraps or recycle more waste during the manufacturing process, it often leads to additional ideas for operational improvements.
5. Societal impact
In addition to helping your company’s profitability, your actions can make a real difference in reducing the number of toxins released into the atmosphere and reduce the waste going to landfills. Future generations ultimately benefit from improved air and water quality.
Sustainability and green manufacturing success stories
U.S. manufacturers are achieving quantifiable results by working with their local manufacturing extension partners (MEP) on sustainability and green initiatives. Some successes include:
• An Economy, Energy, and Environment (E3) review has strengthened a Virginia company’s environmental commitment, resulting in more than $200,000 in operational cost savings—read more.
• Lean and clean programs helped a New Jersey manufacturer realize $3 million in new and retained sales, five new employees, and $500,000 in cost savings—read more.
• A profitable sustainability initiative helped a Wisconsin company reduce fuel emissions and recognize $75,000 in shipping-related costs—read more.
• An energy savings project lead a Kansas organization to more than $61,000 in equipment savings and $24,000 in yearly energy savings—read more.
• An energy efficiency project helped a New Hampshire manufacturer reduce energy consumption by 10 percent and save $25,000 annually—read more.
The National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) is partnering on federal initiatives to help companies gain a competitive edge by reducing environmental impact and costs, as well as enter new markets by developing environmentally focused materials, products, and processes. For more information about MEP’s sustainability efforts click here, or contact your local MEP Center.
First published Sept. 10, 2015, Manufacturing Innovation blog.
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