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
In January, I talked about Evergreen Solar, and their shameful outsourcing of jobs to China, even though they received tens of millions in government subsidies and incentives. Last week, the Metrowest Daily News reported that Evermore has filed for bankruptcy.
The Chapter 11 filing is hardly surprising. Trying to kick-start a company to prosperity by throwing money at it, despite a lack of competitive manufacturing practices and a clear misunderstanding of the pricing structure and the market that they were in was just plain bad judgement. Interestingly enough, the Chinese joint venture may remain open, with only the US subsidiary going down the toilet.
The US and Massachusetts governments seems to pick who gets money by whether the state or business owner is red or blue, and how many possible jobs it supports under the company forecast, no matter how unrealistic it seems. Wouldn’t it make more sense to develop an overall manufacturing and energy strategy with experts in those areas instead of politicians deciding on what incentives and investments will really pay off in the long run?
I think so, what about you?
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
This article on Reuters caught my eye this last week, as we have been working hard on the designs for VirTex Assembly’s new facility. One of the largest considerations we have is ways that we can reduce, not only our overall consumption, but our peak demands. LEDs offer a number of important benefits in a manufacturing environment over traditional halogen based lighting. Halogen lights give off nearly 90% of the energy they consume as heat. This is wasted energy and requires additional energy to remove this heat using air conditioning. Even fluorescent lights can waste nearly 50% of the energy used.
In addition to being more efficient than fluorescent lights, LEDs can be dimmed and have little to no maintenance cost. they also can offer better visibility and a more natural look than fluorescent lighting. This may translate to better employee morale in a building with little outside lighting. Take a look at LED lights if you are looking to upgrade your facility or move into a new one. It may be one of the simplest and most effective green changes you can make.
Posted in Green Manunfacturing, Leadership, Lean Manufacturing
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
When I think of slot machines, I typically only think about the type of green that I leave behind to build new casinos. Flashing lights, buzzers and music do not exactly conjure up images of reducing energy usage. Never the less. the Leonardo Academy is developing a Standard for Sustainable Gaming, LEO-8000. Per their website, the purpose of the standard is to:
“[E]stablish a comprehensive framework and common set of sustainability metrics for the environmental, social, and economic performance of the gaming industry, including the entire supply chain and delivery chain for gaming products and services, as well as the operations of the gaming companies and organizations themselves. The standard will provide a set of metrics that encourages continuous improvement of the environmental, social, and economic sustainability performance of gaming at all levels of the supply chain. The standard will start with gaming equipment such as slot machines and work through the entire scope described.“
I don’t know about you, but if someone can make Las Vegas green, they can do darn near anything. Don’t get me wrong, I love Las Vegas, but it is really not my idea of green. I have long thought that with all of the buildings there, if you installed solar panels on all of them you could have a very green neon jungle. It is certainly un-obscured by clouds.
Again, I Just tkae this as a challenge to think about areas where you are not being green and find new ways to do things that are more green. Vegas may never be truly green, but this is a start.
Brad
Posted in Green Manunfacturing, Leadership, Service
