US manufacturers see green light

US manufacturing executives have had a road to Damascus-style conversion when it comes to their environmental strategies, according to a recent report from Eye For Transport (EFT).

EFT Research surveyed more than 300 North American manufacturing, operations and supply chain managers to establish where their green efforts are focused, how they are managed and financed, and to predict the outlook for eco-products.

The resulting report, Green Manufacturing: Adoption & Implementation, revealed that the corporate mindset around environmental initiatives is changing, and the need to invest in innovative products and new technologies is growing.

"When asked how they view green manufacturing initiatives, 84 per cent told us that they see them as part of an overall optimisation strategy,” said Katharine O'Reilly, EFT's senior vice president of environmental research. “This marks a major sea change, and implies that environmental programmes are becoming part of the standard arsenal of strategies employed to boost innovation and optimise operations."

Nearly all – 95 per cent – of respondents agree that green manufacturing will continue to expand. Furthermore, 66 per cent believe there to be a market for more expensive greener products in their industry.

But increased profits are not the only motive: 43 per cent report that improved efficiency and product quality for their operation are behind the green drive. Initiatives include recycling and re-use programmes; water reduction; energy and materials management and supplier management.

What is pushing US manufacturers to adopt green initiatives where once there was such reluctance to invest? According to the survey, 64 per cent of executives expect green initiatives to further their overall corporate sustainability strategy and vision, 62 per cent see green initiatives as a good response to customer interest in environmentally friendly products and services, and 51 per cent feel they are improving their public reputation.

On the operations side, 52 per cent noted cost reduction as a key benefit, and 47 per cent saw improved efficiency.

With 77 per cent of manufacturing executives in agreement that energy prices will rise significantly next year, the focus of operations budgets is turning sharply towards how to cut dependence on oil.