Green manufacturing and sustainable production practices are more than buzzwords or trends. These principles help manufacturers connect with customers, save money, reduce expenses and earn higher profits. Environmentally responsible manufacturing is more than just improving the production line, because companies change the entire paradigm of doing things across all departments.
The Entire Process
Manufacturers must examine every step, from raw materials and processing to shipping and logistics, when seeking the best green manufacturing methods. Targeted improvements maximize ways to save money while having a positive impact on the environment. Firms should examine five benefits of sustainable production to get the most out of this approach.
1. Energy Consumption
Manufacturers can save energy across all departments. Energy Star appliances use less energy, and compact fluorescent bulbs take less electricity to generate the same amount of light. Lighting levels may change based on the time of day and staffing levels. Regular maintenance and equipment inspections help machinery run more efficiently, thereby reducing power consumption even further. As an example, a firm can reduce its use of gasoline by sourcing its raw materials from nearby locations instead of from overseas suppliers.
2. Tax Incentives
Companies that go green take advantage of tax credits and rebates from the federal government. Getting more money back from corporate taxes each year is always a good thing.
3. Marketing Initiatives
Firms that tout green manufacturing stand to gain customers through marketing initiatives. Businesses expand customer bases that seek sustainable alternatives to mainstream products. When a manufacturer says it is doing what it can to save the environment, brand awareness increases, and more people become socially aware of buying products from a company that uses sustainable manufacturing.
4. Future Impacts
Reducing the carbon footprint of a company makes a direct impact on the environment. Green manufacturing helps improve water quality, air quality and the standards of living for future generations.
5. Morale Boost
Implementing green manufacturing principles boosts employee morale by creating a collaborative and innovative environment. All departments work together to perform environmental audits and continuous improvements. When engineers and line workers look for ways to save money, sustainable manufacturing could even lead to entirely new innovations that save money with more efficient production methods. Internal communications foster a sense of pride and teamwork for a job well done, so everyone wins with this type of initiative.
Successes
Many companies, large and small, benefit from looking at sustainability. Wal-Mart, although in the retail sector, saves more than $500 million per year due to its sustainability projects. Nike increased its revenue 26 percent after implementing company-wide sustainability initiatives. One manufacturing firm in New Jersey saw $3 million in new sales in addition to a $500,000 reduction in expenses that allowed the company to hire five new people. Another manufacturer, this one in Virginia, saved $200,000 in operational costs after going green.
Green manufacturing produces both quantitative and qualitative results in every facet of a firm's operations. The most obvious aspect is the increase in profits, which is the goal of every company.
Photo courtesy of Richard Eriksson at Flickr.com
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