{"id":1178,"date":"2025-10-08T15:22:07","date_gmt":"2025-10-08T15:22:07","guid":{"rendered":"http:\/\/www.davidseall.co.uk\/blog\/?p=1178"},"modified":"2025-10-08T16:02:54","modified_gmt":"2025-10-08T16:02:54","slug":"greening-the-economy-and-how-manufacturers-can-make-the-future-more-sustainable","status":"publish","type":"post","link":"https:\/\/www.davidseall.co.uk\/blog\/?p=1178","title":{"rendered":"Greening the economy and how manufacturers can make the future more sustainable"},"content":{"rendered":"\n

A few years ago I put together a blog about some chapters had written for some books. You can find the post here<\/a><\/p>\n\n\n\n

The chapters were a great way to focus my brain during those troubled times of lockdown and the post-lockdown\/2nd lockdown confusion. The good thing is that those times now seem an age ago.<\/p>\n\n\n\n

I was obviously pre-occupied with this issue as I posted again here<\/a> and here<\/a><\/p>\n\n\n\n

Also some time ago I wrote about the servitization of manufacturing <\/a>and what the impact would be.<\/p>\n\n\n\n

Following the interview<\/a> I gave to New Street Group during the summer it made me think about those original chapters which you can find below.<\/p>\n\n\n\n

You can purchase the books here<\/a> and here<\/a> and I would highly recommend them.<\/p>\n\n\n\n

It’s interesting that this very week Make UK published a paper<\/a> about capitalising on Green Technologies<\/p>\n\n\n\n

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How the UK manufacturing sector can grasp the opportunities of new technologies and contribute to future sustainability<\/strong><\/p>\n\n\n\n

This chapter details some of the challenges that the manufacturing sector within the United Kingdom currently face and how by embracing Industry 4.0 along with other exciting technologies can create a truly circular economy.<\/p>\n\n\n\n

The greening of the United Kingdom\u2019s manufacturing economy has been underway for at least the last 25 years. It began with the push to outsource labour and energy intensive manufacturing processes to Central and Eastern Europe and China and the Far East at the end of the twentieth century. Large corporations sought to benefit from cheaper products and wanted reduced labour costs and were keen to build relationships with these growing economies to create new markets for their goods. They also wanted to reduce exposure to taxation, such as the poorly focussed Climate Change Levy in the UK and remain globally competitive.<\/p>\n\n\n\n

The carbon footprint of the UK reduced significantly and even the recycling of our waste was outsourced. However, our imported carbon footprint rose in proportion and thus the UK failed to reduce the true effect of our activities.<\/p>\n\n\n\n

The unprecedented economic disruption caused by COVID-19, uncertainty surrounding Brexit and the growing realisation of the catastrophic effects of climate change, have accelerated the need for the UK to revisit and change the way we consume and also produce the goods that we need to become globally competitive and create essential resilience in our economy. <\/p>\n\n\n\n

These disruptions have emphasised that global, highly stretched, long distance supply chains have struggled to demonstrate resilience and even cross-channel supplies can no longer be guaranteed. Supplies of pharmaceuticals, medical equipment and food are now seen as vulnerable and the manufacturers of these are seen as strategically essential industries that should be based in the UK. Hence the increasing demand for re-shoring and the domestic production of critical products and services. This will inevitably lead to the potential for our own greenhouse emissions to rise with the increasing productive activity.<\/p>\n\n\n\n

To mitigate this, it will not be adequate to go back to the old ways of production. Manufacturing industry needs to grasp the opportunities of using new energy sources, improved processes and less intensive consumption of resources.<\/p>\n\n\n\n

The impact of Industry 4.0 (which has been defined and explained in a multitude of sources), cannot be underestimated within this more strategic approach. The impact will be demonstrated in a number of key areas.<\/p>\n\n\n\n

Supply Chain<\/strong><\/p>\n\n\n\n

It has been found that the supply chain contributes a significant contribution to an Original Equipment Manufacturer\u2019s (OEM) total carbon footprint. One global pharmaceutical manufacturer recently claimed that nearly 25 per cent of its carbon footprint was produced by the activities within its supply chain. The Industry 4.0 requirement for the digitally automated management of suppliers by the OEMs can lead to a more resilient and efficient system. The just-in-time production and delivery of components and parts will be finely honed and efficient. Over production and inventory will be minimised and the sources of production will be disaggregated from the current single sources and will be located closer to the point of demand. This will reduce the distances of parts travelled and make the shipping of container loads of \u2018stuff\u2019 less desirable. This reduction in transportation can also significantly reduce the carbon footprint of the products.<\/p>\n\n\n\n

Additive manufacturing<\/strong><\/p>\n\n\n\n

Localised production can be made even more efficient by the use of additive manufacturing otherwise known as 3d printing. This is very \u2018pull focussed\u2019, whereby set up times and specific tooling requirements are minimised and only the parts needed at the time need to be produced. The only inventory required is the raw material whether metallic or polymer based and this can be used across a range of parts. Additionally, parts produced tend to be more structurally efficient and consequently are lighter too. Porsche has recently developed an electric transmission casing additively manufactured in aluminium that is ten per cent lighter than the previous conventionally cast component. This technology enables these parts to be made near the point of use without the transportation and storage of finished parts. In theory these parts or parts like them could be produced at service and support centres. A case in point is that of Mercedes Benz which has already introduced 3d printers to print polymer parts in some its truck support centres in the USA.<\/p>\n\n\n\n

Servitization<\/strong><\/p>\n\n\n\n

Another aspect of Industry 4.0 that will have a significant impact on the efficient use of resources is the advent of servitization. This is where the manufacturing company is not only responsible for the manufacturing of the part or assembly, it is also responsible for the full support of the product through the entire service life of that product with the customer. <\/p>\n\n\n\n

We see this manifested at the moment with the Rolls Royce Aero engine model where airlines no longer buy engines but buy a service for the delivery of power from Rolls Royce, sometimes on an hourly basis. Rolls Royce maintain those engines and ensure optimum performance being rewarded with a long-term income stream for a fixed time period.<\/p>\n\n\n\n

Those that buy their mobile phone service through a contract get a similar sort of service. Increasing responsibilities  are placed on the supply chain to be both capable of providing in-service support but also to look at careful through life cost management. This means that reducing costs during manufacture, at the expense of longevity, is not in their best interests. <\/p>\n\n\n\n

An example of this would be the bus companies, who instead of buying the cheapest tyres for their fleet, move toward a service contract based on mileage of their buses. This drives the contractor to purchase the best tyres that not only have a longer initial life but because of superior carcass construction, these tyres can be re-treaded or \u201cre-manufactured\u201d two or three times. This reduces the overall environmental impact by reducing energy consumed and ensuring that materials remain in use and do not contaminate the environment. <\/p>\n\n\n\n

This servitization model will move from B2B to B2C. Customers will use Internet of Things connected devices such as phones, TVs, domestic goods and cars and pay for the service – either via a pay as you go or by subscription. These products will know when to be serviced and will call out for the delivery and fitting of replacement parts. An autonomous vehicle may even drive itself to the service depot for overnight repair.<\/p>\n\n\n\n

Servitization also drives designers to create less modular designs which are then easier to repair in service. The adoption of \u2018right to repair\u2019 legislation across Europe encourages manufactures of consumer goods to build in repairability and reduce the modular, hard to replace and thus expensive nature of the componentry. Again, as we move from an ownership model to one of hire or rental, the onus moves to the supplier of goods to think long term about the relationship and support of the customer. It could be that the customer has a broom that has served them well for ten years but has had five handles and ten heads constantly maintained by the supplier!<\/p>\n\n\n\n

Materials<\/strong><\/a>  optimisation- Technology, Recycling and Remanufacturing<\/strong><\/p>\n\n\n\n

All of this means that the utilisation of materials is optimised, waste is not produced, either during the manufacturing process or at the end of life of the product as there is a much reduced need for landfill.<\/p>\n\n\n\n

Alongside this is the search for more sustainable materials that require less energy to produce and also have less reliance of fossil fuels and other natural resources. Plastics sourced from organic sources such as sustainable sugar cane can be used. There have been significant moves to create more sustainably sourced composite materials using organic resins and natural fibres. For example, this has been regulated in some forms of motorsport for non-critical structural components thus avoiding the need for carbon fibres and epoxy based resin systems. These materials are less harmful for the environment at end of use. Even with conventional epoxy\/carbon composites, waste materials and recycled parts are being remanufactured into other products, an example being carpet tiles for future Boeing aircraft. It has been said that a tonne of mobile phones has more gold within it than a 100 tonnes of ore. Recycling and remanufacturing will create a circular economy which will optimise the use of all materials, especially those that are expensive and strategically difficult to source and ensure that they remain in use without damaging our environment through disposal.<\/p>\n\n\n\n

Energy<\/strong><\/p>\n\n\n\n

Underpinning the greening of manufacturing within the UK has to be the efficient use of energy and the use of renewables. The full electrification of industry needs to be incentivised and we must move quickly. Removing gas from the equation particularly when used for heating and especially ovens, needs to be addressed, perhaps by hydrogen conversion. With gas 25 per cent cheaper than electricity it\u2019s difficult to create a business case within an SME to change. In fact, this will be exacerbated when global demand reduces for fossil fuels at the end of the decade, when oil prices are predicted to drop to $20 a barrel. Economically viable and sustainable methods of producing and distributing hydrogen as an alternative fuel will need to be determined. Also, factories creating their own energy though solar panels and perhaps small wind turbines will only be viable if that energy can be stored and used within the factory. Cost efficient technology such as cheaper, heavier sodium batteries or even mechanical flywheel based technologies may be the answer.<\/p>\n\n\n\n

Skills<\/strong><\/p>\n\n\n\n

All of this new technology such as digitisation, servitization, supply chain management, new materials and green energy needs an upskilled workforce to enable this step forward. Manufacturing is in a competitive environment to capture these skills as they are in demand from many other sectors such as finance, business services and retail. A revitalised manufacturing sector needs to be able to train and secure this talent.<\/p>\n\n\n\n

Policy <\/strong><\/p>\n\n\n\n

There is also a massive strategic gap in capabilities and awareness between the OEMs, at the top of the supply chains and the small and medium sized enterprises (SMEs) at the bottom. The OEMs, driven by their Boards and shareholders to address the issues of Environment, Sustainability and Governance (ESG) are funded and mandated to tackle these issues head on. Whilst the supply chain SMEs, which constitute a significant percentage of the total environmental footprint of an OEM, struggle to find the funds, skills and even management time to address these issues. Greater support to SMEs is going to be required to address the issue, especially as more of the supply chain will now be UK based. Support with skills, advice, technology and especially intelligent procurement and funding will help.<\/p>\n\n\n\n

We will also need careful guiding of the energy market to encourage further electrification and the roll out of hydrogen for both combustion and use in fuel cells.<\/p>\n\n\n\n

Underpinning this is a strategic approach from Government that can create the climate for success. This involves addressing the key skills shortages, encouraging the use of more sustainable materials and most importantly determining a strategy for future industrialisation which creates resilience with export potential that has sustainability at the core. <\/p>\n\n\n\n

And the second chapter<\/strong><\/p>\n\n\n\n

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Organisation, processes and skills and their future impact on sustainable manufacturing<\/u><\/strong><\/p>\n\n\n\n

As we move forward towards a future net-zero, with sustainability integral to all operational activities, manufacturers find themselves tackling the objective on several fronts.<\/p>\n\n\n\n

Those within supply chains are increasingly facing contractual obligations and measures to improve sustainability, as the larger Original Equipment Manufacturers (OEMs), face scrutiny of their environmental impact.<\/p>\n\n\n\n

Companies find themselves under greater external pressures to meet environmental, social and governance (ESG) mandates. Politicians, lobbying groups and the media continue to fuel the appetite of investors and informed consumers. The expectation is that manufacturers must do all that they can to create a more sustainable future for manufacturing and quickly.<\/p>\n\n\n\n

Rules of origin for the constituent materials and components of finished products are not only important for post-Brexit trading regulations. There is also a growing expectancy from consumers that materials will be sourced ethically in a fully traceable and measurable manner. Manufacturers are no longer only responsible for the carbon footprint of their own operations but also for the greater impact of their total supply chain.<\/p>\n\n\n\n

As expected, there will be a gradual flow down of the requirements of reporting and measurement into the supply chain and down to the level of the small and medium sized enterprise (SME).<\/p>\n\n\n\n

Organisation<\/strong><\/p>\n\n\n\n

Organisationally there are several major challenges that these businesses face. Amongst these are governance, culture, leadership, strategy, and maintaining customer and supplier relationships.<\/p>\n\n\n\n

The boards of many companies have realised that their duties are no longer to the shareholders alone but also to a multitude of stakeholders. Of course, it could be argued that failing to meet environmental targets will not only adversely affect many different groups but also lead to a corresponding negative impact on the share price. It will consequently lead to further downstream costs as OEMs will be subjected to legislations making them accountable for lifetime product lifecycle impacts, emissions and consequent recycling. Landfill and waste finding its way into the ocean will no longer be tolerated.<\/p>\n\n\n\n

Aligning the organisation to ensure that the objectives are met requires full commitment from the board, inspired leadership and a creation of a strategy within the business that is not stand alone but is complementary to other activities, this must be integral within business operations and business management systems. <\/p>\n\n\n\n

If this is successful it can create a culture within the organisation where everyone is committed to achieving a truly net-zero enterprise. This would also be guided by the behaviours of customers and consumers.<\/p>\n\n\n\n

Processes<\/strong><\/p>\n\n\n\n

When we look at processes is it’s quite clear that the adoption of lean manufacturing and the future opportunities of Industry 4.0 have and will aid, the reduction of waste and future sustainability of manufacturing.<\/p>\n\n\n\n

Indeed, many companies that have not adopted these systems have implemented design control rules to control and reduce variation within product designs. This manifests itself for the designer with a restricted choice of both materials and processes and consumable items such as adhesives, sealants and fasteners. This can be used to further restrict choice to specify more sustainable options and reduces unused stock.<\/p>\n\n\n\n

The impact of regulations such as Waste from Electrical and Electronic Equipment (WEEE) and the \u2018Right to repair\u2019 have further influenced designs to focus on recyclable materials and products that have greater modularity. These regulations and systems mean that the future emphasis on product design must embrace materials that are ethically obtained from a sustainable or recycled source and have eventually a net-zero impact on the environment and have the capability to be recycled and remanufactured into something else. Indeed, the recycling of waste or surplus materials back into feeder stock for new products or into local energy capture is within the control of the manufacturer.<\/p>\n\n\n\n

Manufacturers may also produce sub-assembles with inherent design features that enable them to be repaired. Of course, eventually this approach can lead to the servitization (an integral part of Industry 4.0) of the product where the onus on repairability is with the OEM. Instead of selling a product, they are selling a service to the consumer based upon the reliability and serviceability of the product throughout the product lifecycle. For example, a smartphone or a car hire\/leasing service. <\/p>\n\n\n\n

Thus, it is in the manufacturer\u2019s interests to design a product that is built to last and can be repaired or that can be refurbished, rather than one that will be thrown away within a short time. <\/p>\n\n\n\n

The consumer has a growing appetite for \u2018remanufactured\u2019 products that have full service lives and perhaps can be adapted and repurposed to meet a different need at some time in the lifecycle. A growing group of consumers also want to be able to repair products themselves.<\/p>\n\n\n\n

When considering lean manufacturing, the universally adopted Toyota Production System names the following wasteful activities or \u2018muda\u2019 that need to be tackled within factory and service operations<\/p>\n\n\n\n