Investing in a green manufacturing initiative may be at the top of your list of goals for this year. There is no doubt about it, this does offer various benefits. For one, it is great PR in a world where consumers love a company’s efforts to reduce their carbon footprint. It can also save the company millions of dollars over its lifetime in many instances.
Some companies are taking big steps, and making big investments, to be an environmentally conscious company and it is paying off in spades.
What’s Behind the Push?
For many companies, it is all about the demands of the consumer. Companies are making significant changes to their investment plans to fill the demands of the consumer. The consumer is demanding eco-friendly, environmentally-focused products. This is driving manufacturers to invest in newer technology that is more environmentally friendly. The immediate cost is simply worth it in the long-term.
Diamond Wipes is a good example of this extreme investing for the payout to the company. The company installed a 3360 panel solar system on top of its new manufacturing facility in California. It cost the company $1.6 million to do, which is about 8 percent of their annual earnings. In doing so, the company is creating enough power to fill virtually all of its needs or even to exceed them.
The company’s investment may be a wise one. With 35 to 40 percent of it coming back to them over time through federal and state rebate programs. For the total payback, it could take seven to eight years to realize their investment and break even. Considering this, it could take the company a decade to break even. It may not sound financially wise, but for the company it’s all about good business.
The benefit, the company says, comes from the PR value found in both the consumer and the corporate customers. This particular company is mainly a business-to-business provider, and the green model it is taking will appeal to those companies they operate with over the entire supply chain.
Beyond the Solar Panels
Environmentally friendly initiative extends beyond solar panels. Companies are investing in methods that reduce emissions. Another option is to improve shipping and warehousing to ensure they are efficient. Moving to biodegradable products is also a key benefit some companies are enjoying. Some are also looking to cut packaging costs to reduce waste. Others are demanding greener base products from manufacturers, all with the goal of creating a more eco-conscious end product for the consumer.
The initial investment may not pay off for some time, but for many companies, it is worth it just to do good business. Meeting the consumer’s demands and fulfilling corporate customer’s needs is worth the investment.
Advance Staffing Solutions in the central states of Ohio and Michigan can help your manufacturing program to become more eco-friendly. Find out how temporary staffing can support a more green manufacturing model.