Green Manufacturing: The Business Benefits Of Sustainability

A few years ago, terms like “going green” and “eco-friendly” were all the rage for businesses. And while those words aren’t quite as buzzworthy today, they are still worth quite a lot to the people that really matter to manufacturers — B2B buyers.

More major players are driving toward a sustainability goal, like McDonald's who plans to use 100% recycled fiber-plastic packaging at every one of its locations worldwide by 2020. What this means for you is the increase of product options in demand and opportunities to tap into a new market and modernize your business.

plastic bottles factory

What's The State Of The Green Supply Chain?

As organizations and customers grow increasingly more sensitive to environmental issues, buyers are more focused on finding environmentally-friendly partners. Studies show that "green organizations" experience faster growth than their less eco-conscious counterparts. This shift is reflected in the buyer behavior data on Thomasnet.com, which shows that demand for green products, like sustainable packaging and custom corrugated boxes, continues to climb. 

Get your free Custom In-Market Buyer Report to see who's searching for products and services you specialize in.

Because buyers are looking for sustainable products and services and partners that share their commitment to sustainability, adopting green policies and initiatives can give you a substantial leg up during the supplier evaluation process.

What Are The Benefits Of Going Green In Manufacturing?

This ability to attract more buyers and win more business is the most obvious benefit of sustainability. However, it's not the only one. Here are some additional advantages of becoming more sustainable in your operations:

Reduced Costs

Going green can help you keep more cash in your pockets, and it's really easy to make the switch. Installing energy-efficient lighting, for example, can substantially reduce your long-term electrical costs. Reducing water usage and cutting down on waste disposal needs can also add up to big savings over time. In fact, a 2014 study by Indiana University found that one form saved $7 billion through sustainable manufacturing, while another was able to save $80 million a year by reducing its energy use.

A reduced supply chain of certified and trusted vendors is definitely cheaper than a wide variety of vendors you use sporadically. Local deliveries equal lower distribution costs. Less energy, water, and waste are less of your profit funneling into bills. In this case, less is most definitely more.

Top_6_Benefits_Of_Local_Sourcing

 

Tax Credits

Making investments in technologies like solar, wind, and geothermal heating will pay off in terms of savings in the long-term. But, you can also receive a tax credit of up to 30 percent of the investment.

Brand Recognition

People want to do business with companies that are not only good at what they do, but good for the things that they care about. Establishing your company as a champion of environmental responsibility can lift the perception of your manufacturing brand, which can play a vital role in the success of your business overall.

Attracting New Employees

As seasoned employees age out of the workforce, the manufacturing skills gap gets wider by the day. If you don't have the right talent ready to take in and take over these vital tasks, it can be crippling for your company. One of the best ways to appeal to the next generation of workers is to demonstrate your commitment to the environment. Millennials want to work for companies that are socially and environmentally responsible. In fact, nearly every state in the U.S. saw an increase in clean energy jobs in 2018, combining to add about 110,000 net new jobs for a growth rate of 3.6 percent.

How Can You Become More Environmentally Friendly?

The manufacturing landscape is a crowded one, and you need to do everything you can to gain a competitive advantage. Embracing sustainability and green-friendly practices is one way you can do just that.

Analyze Your Current Environmental Impact

The first step that you need to take in order to become a more sustainable facility is to understand your current state. Start by analyzing your energy usage. Determine how these sources used in your production processes and how they might influence the environment.

Another important factor to consider is your organization’s water intake. To do so, leverage resources from EPA’s Watersense, or call your local water company. They can help you determine where you can cut water waste.

Finally, look at the materials you are using on the shop floor. Are they recyclable or hazardous? How necessary are they to the production process? Asking these questions can shed light on your situation and your options going forward. Once you understand where your organization stands, you can take steps towards a more environmentally friendly facility. Fortunately, these steps don't have to be giant strides; you can start small and make incremental, strategic improvements.

Learn more: Examining More Sustainable Practices In Manufacturing

Reduce Waste Where You Can

Keep efficiency in mind when using machines. Not in a room? Turn the lights off. Recycle paper and plastic. These are small everyday changes that don’t contribute greatly to the cause, but certainly fall into the “every little bit helps” bucket. Enact a reshoring policy, lessening transportation and fuel usage in favor of local manufacturing, helping the environment and the U.S. economy.

For example, consider how you buy and use raw materials. If you only need part of a raw material, explore ways to leverage what you don't use. Work with other shops in the area to see if they can use the excess materials, and see if they have any you could leverage in exchange. At the very least, recycle your unused materials instead of throwing them in a dumpster.

Regular monitoring of your resources can help you begin thinking sustainably, easing you into bigger and better changes.

Next, think about the bigger picture. For example, can your product development make a shift to greener pastures? Do the products you’re producing have less of an environmental impact as your competitors? Is less energy being used to power your factory? Is the material your using biodegradable? How about non-toxic? How can you weave sustainability into your product design?

Find Ways To Leverage Renewable Energy

Leveraging renewable energy is one of the best ways to create a more sustainable facility. Renewable energy options are plentiful, and they include sunlight, wind, rain, tides, waves and geothermal heat. According to the 2019 Clean Jobs America analysis, by the year 2035, renewable energy is expected to become the world's ominent power source. Major corporations such as Walmart and Anheuser-Busch InBev have already taken action by implementing renewable energy systems because it's cheaper than traditional energy sources for larger shops. In addition to saving on raw energy costs, you may also be able to take advantage of tax incentives, depending on the state you live in. 

Showcase Your Green-ness On Your Website

Your website is the first impression on customers. Make it the best first impression by improving your website with things buyers are looking for — including being green. In the example below, ESI showcases how their facility saves one hundred tons of CO2 per year with it's solar panels. They even added a link to their live solar panel feed.

ESI-green-solar-blog

Buyers learn as much as they can about you online before they decide who to partner with. Interested in what else buyers are evaluating your business on? Our eBook, How To Make The Industrial Buyer's Shortlist lists 26 items on your website's buyers are looking for that will place you in a better position to win more business.

And if you're looking to add a couple new environmentally minded suppliers to your supply chain, head over get registered on Thomasnet.com to start your search.

It's also important to note that adding green content to your website is not a one-and-done deal. Make sure that whatever initiative you implement goes back to your company's bottom line and is continuously optimized to ensure you're getting the best bang for your buck. Take this quiz to find out if you need help from an industrial marketing agency.

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