What Sustainability Means For Your Manufacturing Processes
Manufacturing and sustainability don’t go hand in hand. This industry lags in making strides in this area and is a significant consumer of resources such as energy. Innovation and regulation will be needed to address the social and environmental impact of manufacturing. Companies emphasizing sustainability can differentiate themselves and gain a competitive edge.
Starting the Sustainability Journey
Every manufacturer needs to start the sustainability journey now. They may do so when they need a commercial filling machine or undergo a significant overhaul. The first step is typically the hardest, whether the company starts big or small. However, taking this step is something every company must do if it wishes to access new markets and become more competitive.
The Importance of Sustainability
Manufacturing accounts for 20 percent of GHG emissions worldwide and approximately 50 percent of energy consumption. Minor improvements make a difference in this industry, as small changes can drastically reduce emissions and energy consumption. Manufacturing companies must comply with global sustainability regulations such as the California climate reporting rules and respond to increased market pressure from large multinational companies and consumers. Sustainable manufacturing practices help them embark on this journey.
The Supply Chain
Supply chains majorly affect manufacturing sustainability impacts, accounting for most emissions. Raw materials must be ethically and sustainably sourced to protect the company’s reputation while insulating the supply chain from disruptions. Limited control over suppliers makes meeting sustainability goals challenging, but increased pressure appears to be changing that.
Material Concerns
Material impacts expose manufacturers to risks. They need to create more energy-efficient products and operations, regularly calculate and report emissions, and use recycled materials whenever possible. Furthermore, these companies need to use renewable energy sources whenever possible.
A circular business model known as remanufacturing will drastically lower global emissions while contributing more to the worldwide economy. Furthermore, these companies must use fair labor practices and protect human rights while ensuring the safety and well-being of workers. Supplier performance must be managed to make the industry more sustainable, and sustainability clauses are becoming more commonplace.
Sustainability Regulations
The manufacturing industry is heavily regulated. American companies must comply with EPA and SEC rules. Many states also impose restrictions on manufacturers, and the company must comply with EU regulations. Consumers also pressure these companies to share and manage sustainability impacts.
Steps Manufacturers Can Take to Increase Sustainability
Manufacturers need to address sustainability and profitability simultaneously. When making changes to products to make them more sustainable, they can find ways to cut costs. Mobilizing the supply chain, as outlined above, will also help increase sustainability in the manufacturing industry. The company needs to focus on sustainability when designing products, as this area is where the biggest improvements are typically seen.
However, manufacturers cannot ignore the energy challenges they face, and this area is where they typically struggle the most. Energy use is spread across multiple stages, assets, and manufacturing processes. They must find which stages, assets, or processes use the most energy and focus their efforts there. Once improvements have been made in these areas, they can focus on those that consume less energy.
Manufacturers must prioritize sustainability today, but doing so won’t be easy. To see results quickly, efforts must focus on the biggest emission producers. However, this process must be ongoing to uncover all areas where improvements are needed. Companies that make this a priority will see long-term benefits.