The need to decarbonise, to transition to net zero, and to create more sustainable business practices in manufacturing, logistics and supply chains offers an opportunity to reinvent how we do business. UK manufacturing has declined in the last few decades in relation to other advanced G7 economies as the country's service sector has become ever more dominant.
But UK OEMs and advanced manufacturers harbour a strong and enviable foundation of technological capability along with a high skill workforce adapted to complex assembly. The UK manufacturing base is therefore in a great position for a renaissance, aided by a wave of new cleaner technologies coming online and the transformation imperative toward greener business practice. We take a closer look at this transition and these technologies below.
The green economy transition necessitates a wholesale change in the way companies do business, in their own production along with their distribution and procurement. The economic advantages of this change aren't yet being fully embraced by UK business. UK GDP has green goods and services contributing at 4% versus an EU average of 6%, rising to 11%+ in Sweden and Denmark. UK public investment in low carbon technologies are among the lowest in the G7. The UK has been lagging behind in 'green growth' but the new government's focus on a clearer industrial strategy with 'advanced manufacturing' as a key focus area suggests that is finally about to change.
We've written before about the legislative need to adapt your business for sustainability, net zero goals, and reducing greenhouse gas (GHG) emissions (check our previous article, Better Business Through Sustainable Supply Chain). In Embracing Supply Chain Sustainability for Better Manufacturing we also highlighted the four key areas of sustainable practice implementation: sustainable procurement, green supply chain management, supplier collaboration and responsible sourcing.
It reiterates that good business requires a green supply chain. How can we go from underperformance to unlocking the commercial and competitive advantages of sustainable business and clean tech?
The Manufacturing Matters Report (by the IPPR thinktank), highlights the potential to add 2.5% to UK GDP and up to 1.6 million jobs by 2030 through the opportunities that net zero transition presents. While the benefits of a transition appear solid, its remains a challenge for manufacturers to improve sustainability and move to greener practices in reality. The top barriers according to the 2024 Nexsys State of Manufacturing survey are: rising energy costs (61%), cost of greener technology (57%), and a lack of expertise (48%).
71% think new technologies are making manufacturing more sustainable. With 90% of these saying it has improved efficiency and reduced waste.
— State of UK Manufacturing 2024, Nexsys
Green manufacturing and the path to sustainability
The adoption of sustainable eco-friendly strategies throughout the manufacturing process is the only way countries will be able to meet international net zero sustainability commitments. Manufacturers are being compelled through various factors (including legal and market pressures) to align themselves with this process, so what are the challenges?
— It can be a daunting task to revaluate and reinvent production processes to greener methods.
— New equipment, infrastructure and training costs are significant and can hold business back from investing.
— Depending on how long and complex a supply chain a manufacturer has (and for most OEMs it is on the more complicated side of this scale), reengineering the supply chain for maximum sustainability is not a simple process.
— The addition of sustainable processes and materials add multiple cost pressures and affects pricing profitability.
— Environmental regulations and sustainability compliance is complex and can add further operational costs for clients.
While these are part of a valid critical analysis, key benefits can also accrue and act as a counterweight to these points. Clear competitive advantages can accrue through addressing these challenges. Embracing greener products and production adds to market competitiveness and client attractiveness in a multilayered way.
Cost savings, energy efficiency and waste reduction can also positively affect company bottom line costs through the adoption of sustainable practices. Reduced consumption in materials, energy and packaging mitigates environmental impact and positively impacts the circular economy. Sustainable product design is focussed on component efficiency, product durability and reusability (through life cycle assessment). These are all contribute to company and product competitiveness.
Cleaner, Greener Technologies for Growth
Green industrial technologies are emerging in a wide variety of areas, approaches and options varying from industry to industry, with each sector having its own appropriate mix of strategies. So what can manufacturers look at in terms of these strategic technologies, including those more pertinent to production, assembly and supply chain? We go through the options.
Production Technologies
Renewable Energy Systems — local energy production from solar and wind to power manufacturing facilities. Choosing energy providers prioritising hydropower and biofuels as energy sources; also adds to the renewable energy mix and reduces GHG (greenhouse gas) use. Renewable energy consumption is set to double between 2020 and 2050 (International Energy Outlook).
Energy Efficiency Measures — more advanced machinery and equipment is generally more energy efficient. LED lighting, smart lighting and heating systems offer more efficient, safer environments. Energy consumption can be reduced through optimising production schedules. Algorithmic processing and smart grids with load management administer power in a more efficient, cost effective manner.
Waste Reduction and Recycling — process and production design to create less waste in the production process, and recycling of components and materials. Procurement has a part to play in sourcing from more sustainable sources and from suppliers using green ethical raw materials. Closed loop manufacturing processes intertwine data, technology and sustainability in a holistic process to maximise resource efficiency and reuse (Tesla's Gigafactory and Siemens are global innovators at the forefront of this shift away from traditional linear production to 'closed loop'). On-site recycling and treatment programmes, along with waste-to-energy solutions (using waste heat, 'grey water' or gases to generate electricity or save energy and water in other areas of production), contribute to efficient use of resources.
Green Materials — this includes greener raw materials production, bio-polymers and bio-composites, cellulose-based materials and nano-materials, along with recyclable and biodegradable materials usage. These are providing substitutes for plastics and other synthetic materials. UNIDO's Emerging Green Technologies for the Manufacturing Sector is a wealth of information for these emerging green materials trends.
Advanced Manufacturing Processes — better quality control and production output can reduce rejects and defective components. 3D printing can reduce excess material use, and allow more efficient ways to create parts using less material. Manufacturing principles such as 'lean' streamline production and enhance efficiency.
Assembly Technologies
Automation and Robotics — 'lights out' manufacturing with the use of automation and cobots (collaborative robotic units) can automate production and assembly lines while cutting heat, ventilation and lighting costs. Collaborative robots are designed to work alongside human operatives, and can take over so-called 3D jobs (dangerous, dirty and dull). More physically versatile than static robot arms, they are more suited to pick, pack and assembly tasks.
Smart Assembly Systems — manual assembly systems are being replaced by automation and sensor-packed A3Ss (adaptive automation assembly systems – see Adaptive Automation Assembly Systems in the Industry 4.0 Era) which can result in a 30% improvement in assembly cycle time and a 45% increase in system productivity. Quality control and defect detection can be monitored through AI-enabled sensing, measuring and detection technologies making up IIoT (the Industrial Internet of Things).
Sustainable Packaging — in both assembly and the supply chain, thoughtful redesign of systems and swapping out of materials can mean more effective utilisation of packing materials. Reduction of packaging where possible reduces resource consumption, otherwise substituting for eco-friendly materials and designs helps sustainability goals.
Supply Chain Technologies
Green logistics — making use of hybrid and electric vehicles for transportation is now becoming commonplace as the electrification and powering infrastructure is rapidly propagating and maturing. Route optimisation software both inside and outside the factory can also reduce usage and make transportation more efficient.
Sustainable sourcing — larger supply networks can be monitored through AI-algorithmic assessment, with factors such as sustainability criteria being weighed against availability, value and distance. Blockchain and digital twins can enable trusted provenance and transparent measurement and tracking of supply chain components and material.
Green warehousing —drastic reduction of carbon emissions through best sustainability practices, reducing waste and driving energy efficiency and renewables usage. Energy-efficient warehouse management systems can work in tandem with automated storage and retrieval systems.
Carbon Management — carbon capture and storage solutions reduce and take away emissions for net zero and scope 1,2,3 emissions compliance. 80% of emissions are produced by supply chains so this is an important factor in GSC (green supply chain). AI analysis can track and find areas to optimise carbon footprint.
Smart Grid Technologies — improves control, efficiency and sustainability in energy management. Enhanced load management allows better planning of industrial energy use, including demand response for peak energy reduction and grid stability, and automated reaction to local usage patterns through real time monitoring. Smart Grid includes the integration of renewable energy sources and HVAC (heating, ventilation and air conditioning) management.
Strategic Cross-Cutting Technologies
IIoT (Industrial Internet of Things) — enhancing industrial processes and manufacturing through the use of sensors, actuators and smart devices to provide data monitoring, retrieval, exchange and analysis. Besides smart factory uses, it can enable predictive maintenance, supply chain and asset tracking, along with realtime energy management. IIoT can be utilised fully upstream and downstream in the supply chain, and throughout the production and assembly process.
Artificial Intelligence and Machine Learning — move from a smart to a hyper-intelligent factory. The promise of these strategic technologies is in moving from the collection and realtime monitoring possible through IIoT, into intelligent insight, innovation and value-driven decision-making such as with quality control, and automated management and process optimisation of production processes. Predictive production and maintenance can revolutionise assembly line and product life cycle efficiency.
Digital Twins — the creation of virtual models of objects, production processes and systems for simulation and running test scenarios for improving production and sustainability metrics. Digital Twins allow for continuous improvement (Hitachi use them to simulate each machine on manufacturing sites, and use their data flow to constantly optimise production and get ahead of any production issues). P&G created a digital twin of its warehouse operations, which allowed it to reduce inventory by 30%, achieve 99.9% D.O.T. (delivery on time), and 15% reduction in logistic cost.
Big Data, Cloud and Edge Computing — allows flexibility, scalability and ease of deployment so manufacturers can achieve faster innovation through the collection and processing of production and supply chain analytics and intelligence. Eliminates much of the burden of on-site IT systems and infrastructure maintenance, while increasing reliability and security. Edge computing allows a low footprint but efficient way to collate and provide deep insights and predictive analysis in near realtime at source for critical manufacturing operations where response times and reduced latency are key.
Getting Better at Sustainable Manufacturing
Despite the challenges, we are getting better at sustainable manufacturing. Progress on enabling technologies is making it easier, and increased adoption is lowering both the cost and expertise-gap to implementation. The large amount of energy and materials used in manufacturing gives a big surface area for addressing improvements. It is important to remember OEMs don't need to reinvent the wheel or do everything themselves. Working with partners who are also implementing sustainable practices helps ensure the right pathway to eco-friendly operations.
Green business has become a matter of survival for companies, people and planet. The transition to green tech can be a driver of innovation and competitive advantage for your business.
Sources: — Manufacturing Matters Report, IPPR — State of UK Manufacturing 2024, Nexsys — Technologies Associated with Industry 4.0 in Green Supply Chains Paper — Adaptive Automation Assembly Systems in the Industry 4.0 Era — Emerging Green Technologies for the Manufacturing Sector, UNIDO (United Nations Industrial Development Organisation) – Digital Transformation in Manufacturing Report, The Manufacturer — Trends in Harnessing Industry 4.0, UNESCO
Further reading: — Better Business Through Sustainable Supply Chain — Embracing Supply Chain Sustainability for Better Manufacturing
Learn about our sustainability
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From providing leaner inventory and less waste, to sustainable packaging and more efficient delivery we can help you deliver on your ESG goals and provide a more sustainable supply chain.
