Sustainable manufacturing represents an increase in revenue for mainstream companies that decide to use materials and processes that help the environment. Firms use sustainability as a marketing tool, a company-wide initiative and a way to create new products.
Global warming threatens the future of sustainable manufacturing because climate change could create dilemmas in growing plant-based raw materials needed for some projects. Furthermore, the effects of changing weather, rising seas and warming temperatures may shift resources from one part of the Earth to another. Fewer plants and trees could make harvesting more problematic and more expensive.
In a survey of nearly 3,000 executives examined by MIT, approximately 70 percent said sustainability is permanently on management agendas of their firms. This means companies that engage in sustainable manufacturing eliminate waste by optimizing the use of resources and technology to lessen the environmental impact of the manufacturing process. Companies recycle chemicals that would normally be discarded. Water runoff gets saved for growing rooftop plants or for manufacturing processes. People conserve energy through updated power grids and new machines.
Large companies could save millions of dollars annually and increase profits by using sustainable manufacturing practices. Nike increased revenue by 26 percent after starting sustainability initiatives. Wal-Mart saves more than $500 million per year through company-wide sustainability projects. As many as 66 percent of consumers value sustainability, and 46 of those surveyed by Nielsen in 2012 are willing to pay more for products made in this way.
Of the 100 most sustainable corporations in the world, 20 are American firms. That means U.S. manufacturers have an edge on foreign competition when it comes to marketing sustainable manufacturing. Because companies need every advantage over others to compete for consumer dollars, preventing global warming should be one of the agendas of the private sector regardless of the what government initiatives say. Sustainability practices are not just good for the environment; they seem to be good for business.
Food manufacturers also benefit from sustainable manufacturing by going green. Peerless Coffee & Tea, based in Oakland, California, saves $100,000 per year by recycling. Stonyfield Farm, a nationwide maker of organic dairy products, successfully marketed itself as an environmentally responsible company when it started in 1983. Stonyfield Farm saved $18 million between 2006 and 2010 with a company-wide, nine-point focus on sustainability practices. This cost savings occurred even with the economic downturn of 2007. Stonyfield Farm rakes in $400 million per year in revenue.
Companies can do several things to save money, energy and the environment even without companywide pushes. Employees can turn off equipment when not in use. Companies should replace old lighting fixtures with energy-efficient models. Agricultural manufacturers can cut water consumption by following best practices for irrigation and reviewing water-use policies.
Sustainable manufacturing is not just good for the planet, it is good for business. Companies that implement sustainability measures build trust with customers, and that trust leads to repeat business that forms the basis for constant revenue streams. American manufacturers should lead the way with regards to green innovations.
Photo courtesy of markuso at FreeDigitalPhotos.net
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