We’ve Got Work To Do

Climate change represents the biggest challenge humanity has ever faced, and every industry — especially manufacturing — must reckon with its impacts around the world. We created the Sustainability in Manufacturing Report to better understand how our industry is tackling the problem and gain insight into how we can move towards a more sustainable future.

This inaugural report on sustainability builds on Fictiv’s 8th annual State of Manufacturing Report which has findings and analysis from hundreds of senior leaders in engineering, production manufacturing, supply chain, and research and development (R&D). The report revealed an industry focused on navigating a tough macroeconomic climate, which is shifting individual company priorities and impacting sustainability initiatives.

Sustainability Challenges

Regardless of the larger economic picture, sustainability continues to be a stated priority for leaders, with 87% of those surveyed responding that sustainability is growing in importance. However, intentions aren’t enough to get the job done, and one of the issues preventing effective action is the lack of a plan — 3 out of 10 surveyed companies are struggling to form effective strategies to improve the sustainability of their operations.

And the foundation of any good sustainability plan is built upon good information — about carbon emissions and other climate-related impacts of their operations — but many companies neither understand the scale of their environmental footprint nor have practical ways to measure it. It’s nearly impossible to make effective plans to improve when you don’t know where the problems lie and don’t have the infrastructure in place to measure your progress!

And even with a good plan, you need the resources to execute, which brings us to a couple more hurdles to building a more sustainable manufacturing industry — lack of funding and a failure to prioritize sustainability initiatives.

All of these hurdles are connected. Without good info, there can be no good plan, and without a good plan, it’s hard to get funding and buy-in from your organization.

The good news is that by acknowledging and understanding these hurdles, you can start knocking them down and make real progress in creating more sustainable operations.

Good for the Planet and Good for Business

Let’s be honest, we all know that businesses are built, first and foremost, to generate profit, not to save the planet. But we also know that efficiency is key to maximizing profitability, and a lot of things that companies can do to become more sustainable will make the business more efficient, too.

Which brings me to the most critical elements for building a more sustainable organization — leaders must align sustainability goals with business objectives and embed sustainability into their operations.

Attitudes throughout any organization reflect the leadership of that organization. Employees know when their company views sustainability as an external PR campaign versus when it’s a core value of the business. That’s why leadership is central to the transition from intent to implementation of sustainability initiatives — if leadership has integrated sustainability into their values and practices, those become embedded in operations, too.

So how does that work in practice? Jabil
JBL
is one of the largest manufacturing companies in the world and a key Fictiv production partner. The company’s Senior Global Energy Manager, PJ Farrenkopf, plays a critical role in Jabil’s sustainability initiatives. Farrenkopf provided analysis for the Sustainability in Manufacturing Report, and here’s his guidance for manufacturing leaders looking to align sustainability goals with their business objectives:

1. Take a long-term perspective and consider the potential cost savings and benefits that sustainable practices can bring over time.
2. Evaluate the holistic impacts of sustainability, including environmental and social benefits, alongside financial considerations.
3. Look beyond upfront costs by considering the total cost of ownership and the potential for lower maintenance and operational expenses in the long run.
4. Assess the risks associated with unsustainable alternatives and the potential for innovation and differentiation through sustainable practices.
5. Adopt a collaborative approach by engaging with industry partners and stakeholders to share knowledge and resources.

Key Takeaway

The bottom line is that integrating sustainability into your management strategy and operational approach will increase operational efficiency, reduce costs and waste, strengthen your brand and reputation, and build long-term business viability and success.

Oh, and you’ll be helping save the planet, too.