Efficiency can net manufacturers £10bn
UK manufacturing could increase annual profits by £10 billion and reduce carbon emissions by 27 million tonnes a year if companies adopted widely proven resource efficiency measures, say researchers at Next Manufacturing Revolution (NMR)
According to NMR, a not-for-profit initiative run by Cambridge University’s Institute for Manufacturing, the online sustainability network 2degrees and consultancy firm Lavery Pennell, manufacturers could add billions to their bottom line through greater energy efficiency, better collaboration with suppliers, cutting operational waste and adopting circular-economy business models.
After a 12-month study of the sector, the researchers concluded that, although manufacturers in the UK had improved resource efficiency by 10%–15% over the past 10 years, leading firms had achieved a 50% improvement.
According to the report, if all UK manufacturers reduced their energy intensity by 4% a year, in line with best practice in the chemical and automotive companies, the sector could save £1.9 billion and cut annual greenhouse-gas emissions by 19 million tonnes.
However, the ...