Understanding sustainable manufacturing

Manufacturing is a sector that thrives on innovation, constantly pushing the boundaries of what’s possible. But with this progress comes responsibility. We must progress and innovate towards a more sustainable manufacturing.

For centuries, manufacturing has driven economic growth and improved quality of life, but it has also contributed to some of the environmental challenges we face today. The relentless demand for goods and services, coupled with a rapidly growing global population, has placed unprecedented strain on our planet.

Now, the industry stands at a crossroads. The choices we make today will determine not just the future of manufacturing, but the future of our world. How do we continue to innovate while preserving the planet for generations to come?

This is where the concept of sustainable manufacturing comes into play. It’s not just about reducing harm, it’s about rethinking how we create, consume, and coexist with our environment.

Manufacturing at a crossroads

In the past 300 years, the global population has gone from around 600 million to around 8 billion today. The figures are astonishing. It’s a percentage increase of around 1200%, and in the history of the human race, 300 years is a tiny fraction of the time we’ve existed.

The next 25 years are likely to bring significant change to our environment and the way people live and work.

A report by the British Government and University College London opens with the following statement:

“Driven by an increasing population, resource use and CO² emissions will grow under a business-as-usual trajectory… pushing the world over the 2°C average warming and possibly up to a 4°C – 6°C, with predicted catastrophic effects.”

It’s no wonder that sustainability has taken a central position in the global conscious. It’s a topic that affects us all, and we are right to be concerned about the future. The manufacturing sector finds itself in a unique position, at the intersection of science, technology, and commerce.

Caring for your customers means caring for their future needs as well as their present. To truly focus on our customers, we must go beyond meeting immediate market demands and prioritise long-term sustainability.

What is sustainable manufacturing?

There are plenty of definitions of sustainable manufacturing. Here’s the U.S. Environmental Protection Agency:

Sustainable manufacturing is the creation of manufactured products through economically-sound processes that minimise negative environmental impacts while conserving energy and natural resources. (U.S. Environmental Protection Agency, 2017)

Sustainable business involves finding a balance between profit and planet, but there is also a social dimension. For manufacturing organisations, that might include things like labour practices and community impacts.

Here’s another definition, this time from the world leading Enterprise Resource Planning software company SAP:

Sustainable manufacturing is a system that integrates product and process design with manufacturing, planning, and control, to identify, quantify, assess, and manage the flow of environmental waste. (SAP)

This definition takes a different approach. It emphasises sustainable manufacturing as an integrated system, with a cohesive strategy across the entire business and even beyond. It covers everything from product design to managing waste.

Key differences between traditional and sustainable manufacturing

The term “sustainable” implies a time span. For something to be “sustainable” (without further qualification) it must be indefinitely sustainable. I can stand on one leg for 30 seconds. That action is sustainable, but only briefly. True sustainability requires us to look at the bigger picture.

What is sustainable today may not be tomorrow. Sustainable manufacturing is uniquely forward facing. The difference then, is in the strategic focus of the organisation. The elements of the business are more or less the same, the difference is in the configuration of those elements and the balance between them.

We can see that visually with the popular triple bottom line model. This may be a simplification, but it’s sufficient to make the point. The key difference between traditional and sustainable manufacturing is the balance between the three elements of the people, planet and profit.

A traditional, profit driven manufacturing organisation will usually prioritise economic viability and shareholder value. Their goal is to extract revenue from the markets they serve and ensure the continued existence of the organisation.

With sustainable manufacturing, the organisation must still be economically sound, but not at the expense of the social or environmental impacts.

Three organisation types compared

For the sake of comparison, we have included a third type of organisation in the model – a social enterprise. The primary focus of a social enterprise is to create a social change and remain a going concern. They divide their efforts between financial targets and broader social causes. In its simplest form, a social enterprise is an organisation with dual focus. It may also prioritise broader environmental goals, but not necessarily. It is not a defining feature.

There is at least one more distinctive feature of sustainable manufacturing and that is the focus of innovation. Because sustainable manufacturers present themselves with more restrictions and a greater range of challenges, they are required to be more innovative in almost every aspect of their business operations. To remain economically competitive, they must adapt their activities, search out new suppliers, new materials, alternative energy sources, transportation, packaging, the list goes on indefinitely.

The business case for sustainable manufacturing

The business case for sustainable manufacturing is compelling. Sustainable operations are by nature resilient operations.

An organisation that’s focused on sustainability is necessarily considering its long-term viability. By addressing environmental and social challenges proactively, companies mitigate risks like those associated resource scarcity, attracting new talent and changes in regulations. This requires an investment in the short-term where the returns will be seen in years to come.

But sustainability can also bring about short-term savings. By reducing waste and increasing operational efficiency organisations will see an improved profitability. This will go some way to offset longer term investments. As in the SAP definition, sustainable practices are usually integrated and streamlined. This helps to make the best use of resources, which also translates into cost savings.

The business case for sustainable manufacturing includes push and pull factors.

Perhaps the most compelling of all is an increasing demand for sustainable products produced by sustainable organisations. As consumer awareness and demand for sustainable goods increase, companies that adopt sustainable manufacturing practices are directly satisfying a pool of demand within the market.

Sustainable practices protect and strengthen brand reputation. It’s also an increasing priority to job seekers. By demonstrating a commitment to environmental and social responsibility, businesses can build public trust and loyalty.

Overcoming financial and design challenges

Implementing sustainable manufacturing comes with significant challenges that require innovative solutions. One of the primary hurdles is the initial cost of transitioning to sustainable practices. Investments in new technologies, equipment, and training can be daunting, especially for small and medium-sized enterprises with limited financial resources. However, these costs should be viewed as long-term investments rather than short-term expenses. Gains from waste reduction and improved operational efficiency can offset these costs over time, while avoided emissions contribute to a more sustainable future.

Product design is another area under constant pressure to innovate. Designers must create products that are more durable, recyclable, or made from sustainable materials. Advanced simulations and Computer-Aided Engineering (CAE) tools play a vital role in this process. By optimising designs before production, manufacturers can reduce material usage, minimise waste, and create lighter, more efficient products that are easier to transport.

Navigating metrics, regulations, and profitability

Accurate measurement and reporting of sustainability metrics present another significant challenge. Establishing systems to track and report sustainability performance can be resource-intensive and may require expertise that is not readily available within many organisations. Additionally, regulatory uncertainties add complexity, as governments frequently update environmental laws and standards. Staying compliant requires constant vigilance and adaptability.

Balancing sustainability with profitability remains a delicate act. Companies must align their sustainability goals with financial performance and competitive positioning. This requires innovative thinking, strategic alignment across business functions, and a commitment to long-term resilience, ensuring that sustainability becomes an integral part of their operations.