Manufacturing executives face an increasingly complex market. Even as companies work hard to meet financial expectations and regulatory requirements, consumers are encouraging organizations to pursue sustainability.

Many leaders might see a conflict between profits and environmental stewardship. Yet that is a false dichotomy. Sustainability initiatives in manufacturing can drive both top-line and bottom-line growth in the short term while positioning businesses for success in the long term. That’s something everyone can get behind. 

Sustainability in manufacturing matters 

Manufacturers can uniquely benefit from sustainable transformation. Approximately 54 percent of the world’s energy consumption happens in manufacturing. Finding ways to use energy more sustainably will lower costs and boost margins. Sustainability and profits go hand in hand. 

That being said, I understand that many executives worry that sustainability will come at too high a price. Manufacturers face plenty of challenges already. In a time of rising energy costs, it can be tempting to set sustainability aside. 

Yet that would be a wasted opportunity. The pursuit of sustainability goals can cut costs, drive innovation, and increase shareholder value. Today, 66 percent of consumers are prioritizing sustainable and ethical purchases. What’s more, 99 percent of C-level executives say environmental programs drive shareholder value. Manufacturers that show progress in sustainability have a competitive advantage.  

The industry is using data to drive lean manufacturing

The first step in any enterprise’s sustainability journey is to gather data. Thomas Concrete Group, for example, created a new green concrete offering that delivers data on concrete maturation. The solution makes it easier for its customers to reduce their carbon footprints while delivering projects faster and reducing waste. Now, the group is leading vendors on their own sustainability journeys. Together, they’re tackling the triple bottom line of competitiveness, sustainability, and social good. 

Another promising story comes from Mercedes-Benz. The German luxury car manufacturer introduced the MO360 Data Platform to enhance transparency and predictability. The result? An expected vehicle production efficiency improvement of 20 percent by 2025. Manufacturing organizations use tools like these to reduce emissions and centralize reporting. This empowers the C-suite to embed sustainability into operations and culture alike. 

Green manufacturing can be profitable 

Innovation is driving the industry toward sustainability, and that progress has been accompanied by growing profits for many companies. For example, Ecolab started using recycled water and Nalco Water technology. The solution saves 58.3 million gallons of potable water each year, and it’s just one part of the company’s smart manufacturing strategy.  

Smart manufacturing uses automated processes to lower costs and minimize environmental impacts. If applied across the industry, smart manufacturing could save companies $349 billion while helping to conserve natural resources for all.  

Ingredion is another company using smart manufacturing strategies. The ingredients company recently rolled out a single data solution across its operations. “At a very basic level, sustainability means doing business today in a way that doesn’t inhibit our ability to do business in the future,” says Brian Nash, Vice President of Corporate Sustainability at Ingredion. “For example, 95 percent of our global sourcing is corn as a raw material for our products. If we didn’t look at soil health and sustainable agriculture, we could easily be destroying the farmland that our growers depend on. That directly impacts the viability of our business.” 

Lessons we’ve learned on our sustainability journey 

Manufacturers are uniquely positioned to drive sustainability. By gathering the data they need to guide business decisions, they can reduce costs and conserve resources at the same time. That is why sustainability will be a differentiator for years to come.  

We’ve put together the key lessons learned into a white paper for manufacturing leaders. To learn more about how pursuing sustainability goals can be profitable for manufacturing organizations of any size and specialty, download the white paper here: Profitable Sustainability in Manufacturing.

Gary Nafus

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