Report: Increased recycling will create 1.5M jobs http://www.bizjournals.com/austin/news/2011/11/15/report-increased-recycling-will.html?ana=handmark
This story continues to drive home the idea that there are other ways to create green jobs, even in the services sector. What other ways are there that our political leaders gave not thought of?
Posted in Environment, Green Manunfacturing, Leadership, Service
Singapore has joined the push for sustainability in a major way. In a recent article in Eco-Business.com, the Minster for the Environment and Water Resources explains what the country is doing to incentivise and train manufacturers to be green.
In addition to the training program, which provides a 400% tax credit for participation, Singapore has scaled its Certified Productivity and Innovation program down to support the estimated 7000 Small to Mid sized Enterprises (SME) in the country. This program, called SME Qiang or “SME Quality Initiative to Assist and Nurture Growth” program, looks to teach lean and siz sigma techniques.
Contrast this to the US approach of providing penalties and dis-incentives for non-conformance. It is time for the US to understand that when done properly, green can save money.and lead to increased profitability. By focusing on incentives and training, manufacturers will learn the benefits of green. In order to increase US manufacturing competitiveness, manufacturers have to be trained in green and lean techniques. A US manufacturing strategy that includes green would be a great start.
Yesterday’s Dilbert comic really hit a nerve on green technology with the assertion that many green tech claims are false. While as usual, Dogbert shows his jaded view of the world, it does bring up the question as to who really validates the claims and who assesses what the real savings and impacts are on the environment.
For many things there are standards, but not so much in the energy field. So what if a solar panel does not deliver the same efficiency with a little dirt on it and needs batteries full of harmful chemicals to store the energy? So what if wind power is cleaned up and boosted with natural gas? So what if we have to add new power plants so that everyone can charge their electric vehicles with even more nasty batteries?
These questions show the continuous need to address our total energy requirements. Energy can be neither created, nor destroyed, for lack of a better term, we just move it around.
It is a real shame that the disaster in Japan has focused fear back on nuclear energy again. Risk aside, there are few cleaner forms of power available. It needs to be evaluated equally with other alternative energy forms. There are questions with all forms of power. There should be a uniform way to evaluate and report on the claims. Otherwise, the Dogberts of the world can make whatever claims they like.
A recent story on the Fox newswire shows a significant number of companies that qualified for green energy tax credits for producing renewable energy products did not have enough tax liability to make use of the credits. For many emerging technology companies, they are simply not profitable yet. Therefore, no tax liability and no help. This in turn gives them more incentive to seek subsidies and manufacturing capacity in Mexico and overseas.
Other firms simply cannot fix the green investment to bring their projects to capacity. It is increasingly difficult for US manufacturers to compete, when Chinese companies are getting credit subsidies from the government. LDK Solar in China received an $8.9B credit facility from the China Development Bank. Contrast this with a total of $2.3B approved for a total of 183 projects submitted under the DOE’s 48C program. Working capital loans for manufacturing companies continues to be a problem that slows economic recovery. Availability of cash in loans (not handouts) allows US manufacturers to grow and create jobs. It’s time we looked at putting our money where the mouths we feed are and focus on loan programs for successful manufacturing companies that create US-based jobs.
An new article in the Washington Post highlights the fight for manufacturing jobs being waged by foreign countries will ing to invest in manufacturing companies for the purpose of job creation. With traditional manufacturing jobs disappearing to offshore, near shore and other outsourcing models, the fight to retain US Manufacturing competitiveness is tougher than ever.
While China and Mexico are willing to offer cash incentives to attract companies, the best incentives the US seems to be able to offer are secured loans that are available as long as the company has sufficient collateral. This will rarely be the case in a new and growing company. It’s time that the government levels the playing field for all manufacturing companies, not just subsidies to money losing entities like the airlines and auto makers. Where are the incentives for growing companies that can create real US jobs? It’s time Washington looks at the fight we are in to maintain the country as a cornerstone of manufacturing. It’s time to mobilize manufacturing as a political force with the ability to create the jobs lost over the last decade. Let your congressman know how you feel.Posted in Environment, Green Manunfacturing, Leadership, Offshoring
There is a good update on some topics at the 2010 Green Manufacturing Summit in the Milwaukee-Wisconsin Journal Sentinel this week. A topic of interest was the discussion by Foley & Lardner of the requirements being placed on suppliers by their customers, as well as state versions of Cap and Trade. These requirements, which are driven largely by Fortune 50 OEMs. 60 companies including 3M, Pfizer, Siemens and Kraft Foods are cooperating on a standard to require their supply base to reduce their green house gas emissions. These 60 companies have set a goal to reduce greenhouse gases from their supply chain by 20 million tons over the next 5 years. This will likely be a much more effective approach than a government mandate and will be much cheaper as it will be enforced by industry.
Maybe more meaningful reforms could happen in the health care insurance industry if they chose to clean up their own backyards, rather than continue the turf wars that reduce effective competition. Legislation is rarely the most productive or cost-effective method of enforcement.
I think it is time for all companies to look at their manufacturing practices and see where they can have a green impact. It’s the right thing to do, and frequently makes good fiscal sense too.
Posted in Environment, Green Manunfacturing, Leadership
In another proud economic move for California, Freshwater Tissue, the only chlorine and dioxin free pulp mill in the United States will be forced to close after being unable to get stimulus funds to convert the mill to an integrated toilet tissue plant.
Freshwater tissue had a goal to produce cost-effective, ecologically friendly products to compete against offshore competitors. When the owners bought the plant they also planned to use wasted byproducts of the nearby redwood forest. The tanoak tree, which has long been a fire hazard to the redwood forests, was to be used in the production of this tissue pulp. The plant would have created nearly 3000 jobs, as well as protecting vital natural resources.
This is the problem when stimulus money is controlled only by lobbyists and special interest groups. The money is not getting too small and midsize businesses who could use the money to create new industries in the new green economy.
Maybe Washington will eventually wake up and see that there are other industries that should receive funding. They are doing progressive and positive things in proven technologies that are good for the United States. Many of these companies are in smaller niche markets which do not get the attention that the automakers and airlines get. Until then, good companies will continue to fail, while mediocre ones benefit from their lobbyists and their greed. This is a big loss for Samoa, CA and another loss for the US green manufacturing industry.
Posted in Environment, Green Manunfacturing, Leadership
Well, the stimulus is in full swing and the Obama administration is promising millions of new jobs through the creation of “green jobs”, but what do these really mean. Traditionally, a green job was a job working in a renewable energy sector, but this definition seems to be getting broader as more of the talking heads discuss it. So that got me thinking (and now writing about) what REALLY constitutes a green job.
If manufacturing solar cells and wind turbines are green jobs, why not production of hybrid vehicles? What about all of the Reduction of Hazardous Substances (ROHS) in electronic manufacturing? Are these jobs any less green because they are not NEW? At VirTex Assembly, we take great pains to recycle, reduce and reuse as much as possible, while minimizing the impact on the environment. Does that make us green? I would like to think so.
If a company making solar power or wind turbines is inefficient and wasteful by spending huge amounts of fuel transporting goods around the globe rather than producing them locally, does that make them less green? I would like to think that is true too. Green should be more than the industry you are in. Green should be a corporate culture. Sustainability needs to become the focus and companies working hard to reduce emissions and decrease their carbon footprint should be afforded the same opportunities. Are the hundreds of thousands of new government jobs to oversee stimulus money so it is not wasted green jobs? What about the jobs created protecting the habitat of Speaker Pelosi’s beloved salt marsh harvest mouse? It’s environmental, right? Doesn’t that make it green even if it is just another case of ridiculous pork barrel spending?
I am not naive enough to think that any of the stimulus plan will trickle down to traditional small manufacturing companies. We are not a huge bloated behemothlike the auto industry who has squandered more money than we have donein revenue in our nine year history. We will need to continue to find ways to make ourselves more competitive by focusing on ways to add value in a down economy through increasing responsiveness of service and logistics. Saving money and fuel in reduced transport costs is green, Reducing the amount of packaging materials used to ship products is green. Redesigning boxes and packaging to accomodate more product in less space while providing the same protection is green.
I think I have a green job, as do all of VirTexAssembly’s employees. And I am going to keep thinking so, until something in the very un-green (except for the color on the money) stimulus plan tell me otherwise.
Brad
Posted in Environment, Green Manunfacturing, Leadership
Over the holidays, I saw a Reuters article about a company called Recycline, a thirteen year old Massachusetts company that makes toothbrushes, bowls and other kitchen products from reused plastics. Recycline has standardized on No. 5 plastic, a plastic not commonly taken by recyclers that is used is yogurt and other food containers.
To get this plastics they rely on unconventional sources, many times coming from supplier partners who could not otherwise readily find recycling outlets for their products. One such partner is for Stoneyfield Farms, who sends then containers collected so that they can be reused. Austin based retailer Whole Foods is also looking to start collection bins for No. 5 plastic so that they can be sent to Recycline for processing.
Perhaps the most impressive thing about Recycline’s products is that they cost no more than products made from conventional sources. This is the goal of all re-manufactured products, to be able to offer products at a comparable cost while providing a positive impact on the environment. They do this through focusing on their core competencies, sales marketing and product development. Design and marketing are done through outsourcing..
Manufacturing has become a business of specialties, which bring economies of scale to their customers. In my opinion, this continues to be the model that is most sustainable for many companies. EMS and ODM companies have become the means by which start-up companies and established OEMs design and manufacture electronic products. Our customers rely on VirTex for electronic design, manufacturing, fulfillment and logistics so they can focus on what they do best.
Other industries such as food processing, pharmaceuticals and now recycled plastic products follow the same model. As manufacturers continue to feel the effects of the economic recession, outsourced manufacturing will continue to be an option for entrepenuers who still have vision and determination.
In this weeks Austin American Statesman, it was revealed that Greenstar, the city of Austin’s recycling program partner hauls the recycling materials over 200 miles to its Garland, TX recycling facility.
http://www.statesman.com/news/content/news/stories/local/11/09/1109recycling.html
When the city of Austin was ready to move to single stream recycling Greenstar was supposed to be able to do this locally. Their San Antonio facility was not ready. Since the city switched to solid stream recycling, daily trucking to Garland for recyling has risen to 150 tons per day. Until the city restarts and completed its plans for its own facility in solid waste recycling, there is huge waste associated with the city’s recycling program. Until Austin has a better solution, ten 18 wheelers per day make their way 215 miles from Austin to Garland.
Any good plan should include a contingency and oversight. The single stream recycling plan is clearly low on both. Increased scrutiny and public pressure may increase the development of the comprehensive master plan that will address Austin’s long term needs. One can only hope that this will have more alternatives for delays and oversight than the current plan.
This is a great example of a good concept, poorly executed. Rock concerts to promote awareness of global warming that bring rock stars to concerts on private jets and limos, wasting hydrocarbons and generating emissions is another. A good portion of the problems we face right now are similar.
The mortgage crisis is classic example of poor execution and oversight. One can only hope that our national leaders are more vigilant and forward thinking than our local leaders, but history would certainly not indicate that.
As we look for solutions to energy shortages, and ways to reduce our dependence on foreign oil, I can only hope that we plan, address alternatives and execute better than this recycling plan.
Brad
Posted in Environment, Green Manunfacturing
