Manufacturers starting to decouple business growth from carbon emissions

By Made In Group
schedule21st Dec 22

By 2050 or sooner, factories will need to deliver significantly greater output using fewer resources and producing zero harmful emissions. As the pressure to become net zero rises, the issue businesses face is how to achieve growth without increasing their carbon footprint.  

Manufacturing generates around 16% of total UK greenhouse gas emissions. Therefore, industrial businesses have a vital role in dealing with climate change. Fortunately, more and more companies have realised the need to become net zero, localise their supply base and invest in environmental initiatives.

Actions being taken include improved resource efficiency; reduced reliance on fossil fuels; reshoring production; adopting circular design principles, and embedding sustainable manufacturing practices across the value chain.

One such business is Alwayse Engineering, the Birmingham-based company globally recognised as the leading designer and manufacturer of Ball Transfer Units. BTUs are an innovative solution to a challenge faced by many businesses – how to handle materials more effectively, efficiently and safely.

Alwayse exports to more than 60 countries around the world, a feat supported by a global network of distributors. Twelve months ago, the company faced a dramatic increase in transportation and packaging costs. Rather than accepting the situation, Daren Lightwood and his team chose to review current practices and explore a better alternative.

According to the Managing Director, the project had three aims:

  1. Reduce waste, particularly single-use plastic, by upgrading packaging
  2. Reduce shipping costs by optimising packaging formats
  3. Improve structural integrity of packaging used

Challenge the status quo

The Alwayse team began by categorising their products into three groups – runners (high volume, core lines), repeaters (not as common but regularly ordered) and strangers (bespoke, special-order parts). Minimum order quantities were introduced for runners and repeaters which led to distributors buying in bulk. This reduced the number of transactions for smaller orders and the increased stock-holding enabled distributors to serve local demand more quickly.

New box standards were defined, with one size for runners and another for repeaters and strangers. Products are also now packed straight from the production and testing line rather than being booked into stock and then having to be re-picked for distribution.

The new boxes eliminated all plastic packaging, which previously accounted for around 80% of Alwayse’s total plastic footprint. A BTU was also installed in the dispatch area to reduce internal manual handling.

The new boxes are stapled rather than glued, carry improved product branding and are made from thicker material which helps ensure products arrive intact. The new packaging is not only cheaper, but it is also more space-efficient.  

“We’ve saved 20p per box on every box at a time when packaging prices were going through the roof,” noted Daren. “Additionally, we’ve managed to achieve a 45% reduction in volume that we were sending out. Volume is a critical element of sending goods by air so we have saved our distributors significant sums in shipping thanks to this project.”

Daren’s message to members is that even though you and your business are facing extreme pressures from rising supply chain and transportation costs, ask yourselves why you’re doing things the way you are. There may be a better, more innovative method that could help your products become more competitive in the market, help grow your existing sales and possibly lead to the development of an entirely new product or revenue stream.

Following Daren's presentation, a Discussion Group chaired by Jonny Williamson explored what actions other Made Members have taken to reduce their carbon footprints. 

Green intelligence

The UK MD of a global manufacturer and distributor of machine tools described his organisation’s ‘Go Green’ strategy. Sustainability has been factored into all its operations, from machine tool, design, development, manufacture, usage and eventual renewal. The company is also working towards making its machine tools four times more efficient by 2030 compared to 2010.

One innovation the company has introduced is especially relevant for manufacturers. Hard structures such as buildings, roads and other urban infrastructure absorb and re-emit more heat from the sun than natural landscapes such as woods and rivers. This creates what is known as heat islands which contribute to global warming.

To combat this, the company has installed a ‘living green roof’ on which moss is growing to reduce the heat island phenomenon. Such a move could be replicated across the billions of square meters of commercial roof space in the UK.

The benefits of doing so (purifying the air, reducing the ambient temperature, regulating indoor temperature, saving energy and encouraging biodiversity) greatly outweigh the downsides (cost of installation, reinforcing structures to support additional weight and regular maintenance).

The group went on to discuss how technologies were the enabler underpinning many environmental innovations. Whether manufacturers are looking to take their first, small step on their journey to net zero or make a larger, more far-reaching change, there are solutions available at a price point to suit all budgets.  

This is especially true for digital technologies, with the price of sensors, storage and analysis falling sharply over the past decade. As one Made Member concluded, “Understanding is the starting point for any improvement project, you need to understand what is happening, why, when and where before you can begin to explore how to improve it.  

“Understanding how your shopfloor assets are being used, for example, enables you to then start using them more effectively. The same goes for your maintenance procedures and the move from being reactive to preventative and more predictive.”

Meet, confer and share best practice 

Opportunities to openly discuss and consider challenges, opportunities and solutions are why the Made in Group’s Virtual Breakfast Mornings are so invaluable.

Eighty minutes out of your morning to hear inspiring and thought-provoking conversations, build relationships with like-minded fellow manufacturers, and gain a clearer picture of what’s happening beyond your factory gates.

We look forward to seeing you at the next one:

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*Header image courtesy of Pixabay, all other images courtesy of Alwayse Engineering


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