The manufacturing industry was hit hard by the global financial crisis of 2008. As some manufacturing facilities could no longer pay for production costs, they had to close their doors, causing layoffs all over the world. Since 2010, the industry has slowly and steadily been recovering from the crisis. Factories opened for business again and employment has increased for some. Although there is no certainty in how long this growth trend will last, experts have claimed recent innovations in energy efficiency and sustainable practices have the potential to continue to help the industry flourish.
In an article on GreenBiz, Nate Aden claims that, “[…]efficiency-improving investments and innovations can preserve and in some cases create jobs through increased economic competition.” Innovation and competition are the driving forces in any industry because these two factors have a way of encouraging companies to continously improve and grow.
New innovations brought about by sustainable practices have also become popular because of the long-term paybacks they offer. Aden goes on to say, “Technology investment and efficiency improvements will help preserve jobs through facility survival […].” With more investments coming in, companies have the opportunity and the means to apply sustainable practices in their factories. This means companies who did not have the budget to implement sustainability initiatives before now have the justified payback that enables them to differentiate themselves.
Executives in the manufacturing industry claim they see the importance of energy efficiency in their factories, according to an article for businessGreen. The cost of energy is increasing, and with it companies are considering the options new sustainable innovations offer. Executives must, however, weigh the long-term effects a rise in prices means for their facilities, operations and employees. Furthermore, the continued exhaustion of the world’s resources means that raw materials become more expensive over time. Adopting more sustainable programs and practices helps companies better manage their supply chains and make their brand more attractive to consumers.
With recent successes in the manufacturing industry, executives seem more open towards taking risks in developing their production methods, streamlining operations and improving facilities. The employment rate at these facilities will grow as demand for products grows. The economic crisis and the impact of climate change have reinforced that the industry needs to accelerate the implementation of new equipment, processes, procedures and programs that reduce the impacts of climate change and deliver a return on investment within 1-2 years. Engaging an experienced third party allows them to find industry best practices for their supply chains.
FirstCarbon Solutions offers sustainability consulting services that help companies in manufacturing and other industries keep track of their business inputs and outputs, with regards to their respective supply chains. FirstCarbon Solutions’ proven tracking system assures important and relevant information is efficiently and effectively delivered to all satellite factories through a single platform, while reporting performance against a defined set of business targets and KPIs. For more information, click the button below.