Manufacturers need efficiency now for post-recession savings

Manufacturing firms need to do better at managing resources efficiently, not only to save on costs but to prepare for an “increasingly regulated post-recession economy,” according to a new report from the manufacturers’ organisation EEF.

Prepared in conjunction with Barclays Commercial Bank, the report — “Resource Efficiency: Business Benefits from Sustainable Resource Management” — says UK manufacturers are missing out on a unique opportunity by not working now to become more efficient.

In addition to identifying the benefits of resource efficiency, the report also provides a guide to practical resource-management applications for a wide range of factory environments.

“Many companies underestimate the true cost of inefficient business processes because of a lack of understanding of environmental costs,” said Vanessa Fandrich, EEF’s Senior Climate and Environment Policy Adviser. “Behaviour change is often a first step towards realising considerable savings.”

Fandrich continued, “However, in some instances doing things differently will require more significant investment and market forces alone may not be enough to provide for the necessary change. The government must set out clear objectives and timescales for sustainable resource management as part of its low carbon strategy, which businesses can use to plan their operations strategically.”

“While environmentalism has traditionally been considered a back seat issue during a recession, the strong correlation between resource efficiency and cost control should be pushing energy use and waste management much further up the corporate agenda,” added Ray O’Donoghue, Head of Midlands Region, Barclays Commercial Bank.