Sustainable products and processes are being viewed as essential competitive differentiators in the marketplace. Also, demands for environmental excellence, from customers, OEM’s, policymakers and regulators is impacting manufacturers with growing force and will only strengthen in the very near future. Despite all of this, manufacturers’ performance is notably low and the sector is just waking up to the growing importance of this success attribute. Even though it may seem counter-intuitive; manufacturers can achieve environmental excellence while reducing expenses, increasing brand value, mitigating regulatory risks and improving employee morale.
Why the Gap?
Even though over 65% of manufacturers recognize the importance of sustainability to their operations, less than 20% are at or near world class. In many cases management feels there are better ways to use capital than investing in “green” technologies or they do not want another “distraction” from their core operations. Other times, even when management does see the value that sustainability can have on their companies’ top and bottom lines, the expertise to successfully develop, implement and manage the new products or programs does not exist internally. Then the choice becomes hiring someone with the expertise or paying a consultant, which just are not palatable for most in the current climate.
Where to Start
Like other Lean wastes, environmental wastes including: excess energy usage, hazardous and non-hazardous solid wastes, excess water usage and waste water, and toxic emissions, not only add unnecessary cost to the product, but do not provide value to the customer. Addressing these wastes also minimizes negative impacts to the environment and the community, which is critical to being a successful manufacturer.
One of the best ways to get started on a journey to becoming a more sustainable operation is to look in the trash for cash. Most manufacturers literally throw away tens of thousands of dollars every month or year on waste disposal. Starting a recycling or product donation program to divert waste from the landfill is a great way to not only drive down operating expenses to improve the bottom line, but also to start a sustainability program to engage your employees. Most employees are very familiar with recycling because they do it at home and it is something they touch and see, unlike energy or water. It also has an immediate impact on the bottom line which makes it easy for management to get behind.
Sounds easy, right? Even though the opportunity is there, many manufacturers do not have the resources to do a waste audit, determine the value of materials, find a buyer or processor, arrange for transportation, file permits with regulators, procure containers and all the other steps required to get a program up and running.
MassMEP Can Help
In support of its Energy & Environment Program of the Next Generation Manufacturer initiative, MassMEP assists manufacturers in not only becoming LEAN, but GREEN. MassMEP has partnered with ESE Solutions to help manufacturers achieve their financial and environmental goals in a manner that limits up front expenses, maximizes long term sustainable results and allows the manufacturer’s staff to remain focused on their core responsibilities.
For more information about how MassMEP with ESE Solutions can help reduce your operating costs and have a positive impact on your environmental performance, please contact:
