Threats to our environment continue to grow which has resulted in government regulations and increased consumer awareness. Consumers believe that companies need to be conscious of what they are putting out into the environment and believe in corporate social responsibility.
As consumers become eco-friendly, they are also interested in supporting environmentally conscious/responsible manufacturers that strive to reduce their environmental footprint. It is up to manufacturers to encourage environmental responsibility. Here’s more information about how:
Government Regulations Have Impacted Manufacturing
The manufacturing industry has been highly impacted by such government regulations. The amount of waste that manufacturing companies create is being monitored which has resulted in Environmentally Conscious Manufacturing (ECM). According to the International Institute for Sustainable Development:
Environmentally conscious manufacturing (ECM) is a new way of thinking about manufacturing which focuses on the most efficient and productive use of raw materials and natural resources, and minimizes the adverse impacts on workers and the natural environment. In its most advanced form, a product’s entire life cycle is considered, from design, raw material and natural resource use to end use and disposal.
In order to reach this goal, tools like life cycle analysis (LCA) may be used. Concepts like pollution prevention, energy efficiency, material substitution and maximization of recycled content guide the process.
Companies Strive to Meet and Exceed Regulations
While companies strive to meet and exceed regulations and expectations, it comes with a cost. This “regulatory burden” is difficult for many manufacturing companies. Regulation costs the manufacturing industry between $265 billion and $726 billion a year, a large chuck of the $1.7 trillion a year manufacturing industry, according to the National Association of Manufacturers.(http://dailycaller.com/2012/08/22/environmental-regulations-hit-manufacturing-hardest/#ixzz2uMmR0JDz)
However, manufacturing companies also benefit from practicing ECM. Reducing waste, in addition to improving the environment and keeping major stakeholders happy, also decreases production costs and improves a company’s competitiveness and profitability.
From EPA.gov, 5 key benefits from sustainable manufacturing include:
- Lower Resource and Production Costs
- Lower Regulatory Compliance Costs
- Improved Sales and Brand Recognition
- Greater Access to Financing and Capital
- Easier Employee Hiring and Retention
Manufacturing companies that adhere to ECM guidelines will typically use this as a selling point. Every manufacturing company is different, since different materials and processes are used. Look for corporate responsibility or sustainability program information page on a company’s website to learn more.
For more information about this, please contact Fishman Corporation.