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5 Business Benefits of Embracing Green Manufacturing

Green manufacturing is more than just a trend — it lowers energy use, materials use and pollution production. Embracing this method can benefit your business, too. It’s time to become more environmentally conscious. In doing so, you’ll save money and improve your efficiency — it’s a win-win situation on all sides. There’s no reason not to adopt green manufacturing practices in your business.

Here are five benefits of opting for green manufacturing.

1.      Lower Energy Costs

The most common benefit of green manufacturing comes in energy savings. When you become a greener business, you’ll cut your energy costs by using more energy-efficient methods. Switch out incandescent lights for more efficient LEDs or solar tubes. Consider installing solar panels on your facility. Doing so can cut the amount of electricity you use from the grid while making your facility more sustainable.

Additionally, when you opt for greener energy sources and reducing the amount of electricity you use, you’ll lower your impact on the environment. Reducing your energy costs saves you money, keeping more green in your wallet as you make your facility better for the planet, too.

2.      Tax Cuts

Installing green energy production sources on your building can cut your power bills. It can also lower your tax liability. The U.S. IRS offers a corporate tax credit for investing in sustainable energy, which gives you a rebate on a percentage of qualifying purchases. For instance, with the Business Energy Investment Tax Credit, you could get a 30 percent rebate on wind, solar or fuel cell purchases. Rebates of 10 percent of the cost of microturbines and geothermal are also included.

As with any tax incentive, read the fine print or discuss this option with an accountant before making a purchase or filing your taxes. Thanks to this federal incentive, though, becoming a greener business is easier than ever.

3.      More Reliable, Local Products

It’s not enough to cut your energy use — you also must think about your facility’s place in the environment. Buying products from overseas contributes to greenhouse gases from shipping the goods. Shipments also increase the total cost of the supplies. Purchasing goods from your country is a better option for the environment and your business. With the supplier closer to you, you will enjoy shorter shipping times and products built to a caliber you can verify soon after purchase.

Every product you use in your facility can be greener. Die-cast products made in your home country are an eco-friendly, reliable option to sand-cast or overseas products. This process relies on recycled materials. Of all aluminum die castings, 95 percent use recycled metal.

4.      Boost Reputation

Consumers demand transparency in the manufacturing of everything they purchase. If you have greener products and production, you can label your goods to illustrate that. This clean label is highly coveted. According to Manufacturing Global, with a reputation as an environmentally friendly manufacturer, you’ll reach the 81 percent of consumers who prefer green businesses.

Even if it takes time to transition to sustainability, millennials will wait for you. West Monroe Partners discovered 82 percent of millennials would wait for environmentally friendly delivery, which outpaced any other demographic. Be patient in your transition to green manufacturing. Your new reputation with consumers will make the wait worthwhile.

5.      Improve Morale

Employees will have better morale if they feel assured of keeping their jobs. When you hire green manufacturers, you’re bringing a position onboard that accounts for 26 percent of clean energy jobs, according to Goodwin College. Though they require a higher salary, these workers will help transition your facility to a greener manufacturing plant.

Keeping your production in one place can also help the environment. Though it may cost less to outsource to another country, they may not follow environmental restrictions as closely there. Additionally, you’ll lose worker morale.

Reshoring — or bringing jobs from overseas back to the U.S. — has resulted in 90 percent of American manufacturing jobs added to the industry. You’ll make your employees feel valued if they aren’t afraid of their jobs being outsourced. Plus, you’ll gain the highly desirable “Made in America” label for your products.

Make Manufacturing Greener

If you want to make your business greener, look to your building. If you construct a new facility, Manufacturing Global recommends building it according to LEED building guidelines — doing so can cut your energy costs by 28 percent. Even if you don’t build a new facility, you can change the light bulbs you use and switch to more energy-efficient habits and equipment. Use the available tax cuts for solar panels or wind turbines to get even more for your investment.

To benefit your company, move your manufacturing back to the U.S. Reshoring and using local products can cut your shipping costs for supplies, increase your reputation and make your employees feel safer in their positions. Even if you cannot move all your operations to the U.S., make the switch to American manufacturers for your supplies. Doing so can reduce the size of your carbon footprint through cutting shipment fuel use.

To a Greener Future

The future of manufacturing is green. Your business will benefit financially from embracing green manufacturing processes that lower energy use, cut waste and reduce pollution. If you get so many benefits for such a little investment, why would you not become a greener business?

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