Seeing High Profits From “Green” Operations

A recent survey of over 300 North American manufacturers, conducted by EFT Research, found that the corporate mindset around environmental initiatives is changing and the need to invest in innovative products and new technologies is growing, according to Industry Week.

Seventy-seven percent of manufacturing executives said they believe that energy prices will rise significantly next year and that the focus of operations budgets is turning sharply toward how to cut the dependence on oil.  Ninety-five percent of respondents pinpointing where they are seeing a return of investment, said their green manufacturing segments will continue to expand over time.

About 66% said they believe there is a market for more expensive and greener products in their industry.  The finding showed that it’s not just the increased profits that are driving green initiatives, 43% of respondents said environmental imperatives have resulted in improved efficiency and product quality for their operation.

To achieve results from green efforts 65% of respondents were investing in recycling and reuse programs.  Additionally water reduction programs (58%), continuous improvement (54%), energy management (50%), environmental management (46%), materials management (36%), establishing a corporate green team (33%), and supplier management (32%) are all being used to make manufacturing leaner, greener and more profitable.  On the operations side, 52% noted cost reduction as a key benefit, and 47% saw improved efficiency.