* Sustainability Fuels Savings, Growth and Competitive Advantage
* PSI Pilot Program Demonstrated Substantial ROI for Manufacturers, State of Wisconsin
MADISON–An innovative program to promote sustainable manufacturing in Wisconsin will be expanded to include an additional 30 manufacturers. The Profitable Sustainability Initiative, managed by the Wisconsin Manufacturing Extension Partnership (WMEP), will assist small and mid-sized manufacturers in using sustainable practices to save money and gain a competitive edge.
A report released in June 2011 stated that the five-year economic impact from the first 45 firms participating in the Profitable Sustainability Initiative is projected to be $54 million, along with immediate and long-term environmental benefits.
Because of the tremendous success, both in profits and environmental impact, WEMP is seeking an additional 30 manufacturers to participate in Phase II of the Profitable Sustainability Initiative. The Profitable Sustainability Initiative is funded by the Wisconsin Economic Development Corporation (WEDC) and the American Recovery and Reinvestment Act.
According to WMEP, the pilot of the Profitable Sustainability Initiative will result in a $54 million economic impact over five years by the 45 Wisconsin participating companies. The WEMP estimates the companies collectively will have $26.9 million of operation savings, $23.5 million in increase or retained sales, and $3.6 million in investment.
The WEMP also reported the Profitable Sustainability Initiative will achieve reductions in electricity use, carbon dioxide and total air emissions, transportation and solid waste from the 45 companies over the next five years.
“Wisconsin manufacturers in the Profitable Sustainability Initiative pilot program have made dramatic progress that has exceeded our expectations,” said Paul Jadin, CEO of the WEDC. “We are well on our way to becoming the most sustainable manufacturing state in the nation. The impressive success of the 45 companies in the pilot program shows that this is a wise investment with business returns and environmental impact reductions that are nearly 30 times higher than program costs. Expanding this program to more manufacturers makes solid business sense for our state.”
“With an estimated 31:1 return on investment, the Profitable Sustainability Initiative has proven its value to Wisconsin manufacturers at a time when businesses are focusing more and more on sustainability,” said Buckley Brinkman, executive director of WMEP. “The recent 2011 Next Generation Manufacturing Survey shows that Wisconsin manufacturers have made strong progress since 2008 toward recognizing that sustainability will affect the success of their business in the next five years. The PSI program helps manufacturers put sustainability into practice while driving profitability.”
The program, managed by WMEP, brings together a team of expert partners to work with manufacturers to identify and implement high-payback projects targeting energy, logistics, product and process innovation and environmental improvements.
Manufacturers can get information about the Profitable Sustainability Initiative at http://www.wmep.org/PSI-Phase-II. The deadline for submitting an application is November 18, 2011.
Unique Public/Private Partnership Fuels Success
The PSI program – the only one of its kind in the U.S. – features a multidisciplinary approach to sustainability and reliance on expert partners to drive improvements. Under the program, a team of energy, environmental, logistics, lean and finance experts are dispatched to take a 360-degree view of the participants’ business enterprises to diagnose, assess and implement improvements.
“A key reason for the success of the pilot program is that PSI is flexible and customer-driven,” said Randy Bertram, WMEP’s PSI program manager. “The program absolutely encourages manufacturers to prioritize sustainability projects based on business needs, fast payback and high ROI. There are no cookie-cutter solutions here.”
PSI Results
The Profitable Sustainability Initiative demonstrates the power of sustainability to drive savings, growth and competitive advantage for state manufacturers, while reducing environmental impacts.
Five-year financial and environmental project impacts for the initial 45 participating firms include:
* $26.9 million in savings
* $23.5 million in increased/retained sales
* $3.6 million in investment
* $54 million total economic impact
Environmental impacts include reductions in:
* Electricity: 17.3 million kilowatt hours
* Carbon dioxide equivalents: 45.6 metric tonnes
* Transportation: 10.8 million miles
* Solid waste diverted from landfills: 11,245 tons
* Air emissions: 83.7 tons
The financial and environmental impacts are based on rigorous cost-benefit and data analyses completed by WMEP and its partners, Focus on Energy, SCS BT Squared, Inc., LogiServe® and Baker Tilly Virchow Krause, LLP and North West Wisconsin Manufacturing Outreach Center (NWMOC) in consultation with PSI participants.
Visit http://www.wmep.org for more success highlights or to view the report on the impacts of the first year of the Profitable Sustainability Initiative.
Participating companies laud the Wisconsin Profitable Sustainability Initiative
TCI, Inc., Milwaukee: “TCI participated in a PSI project and was very pleased with the diagnostic and assessment process as well as the results,” said Steve Copp, president of Transcoil International. “The PSI team provided a high level of expertise and identified legitimate areas for improvement in several parts of the company’s operations. The team produced supporting data that quantified realistic ROI gains and gave us practical tactical options to realize the ROI. That was impressive.”
Edstrom Industries, Waterford: “We’re working on two projects identified through the PSI program,” said Pete Planton, vice president of manufacturing and supply chain for Edstrom Industries. “The first is a Value Stream Mapping (VSM) project that analyzes the manufacture of one product from start to finish, with the goal of reducing overall lead time. Our initial goal was to reduce overall lead time from seven weeks to five weeks. We identified 36 different wastes through the process and we’ve resolved 32; our lead time is now just four weeks, and we’re not done yet. The other project is ‘Eco-Transportation- – through the PSI program, we installed a software package that streamlines the quoting process and ensures that all of our shipments are ‘Smart Way’ – the most environmentally friendly way to ship freight. By the end of the year, we expect to see a significant reduction in our carbon footprint. The PSI process is user-friendly and has provided both immediate and long-term benefits to Edstrom Industries.”
Johnson Electric Coil Company, Antigo: “I really liked the PSI process – it provided access to expertise that small companies normally don’t benefit from,” said Bill Bockes, president of Johnson Electric Coil Company. “We learned a lot about our energy consumption and we now track energy use with a software package provided through the program – we can even calculate our carbon footprint. With PSI funds, we were able to insulate the roof in our facility – we’ve calculated a ROI of four years for that investment. The process was worthwhile, and the data we gather will help us evaluate other changes that will save money and benefit the environment.”
PSI Partners
Northwest Wisconsin Manufacturing Outreach Center (NWMOC) provides business assistance and management expertise to small and midsize manufacturers and is part of the NIST Hollings Manufacturing Extension Partnership (MEP).
Focus on Energy (FOE) works with Wisconsin manufacturers to install cost-effective energy efficiency and renewable energy projects. FOE provides information, resources, and financial incentives help to implement projects that otherwise would not be completed, or to complete projects sooner than scheduled.
SCS BT Squared, Inc., delivers economical and environmentally sound solutions for solid waste management and other environmental projects throughout the world. SCS BT Squared provides engineering, construction, and long-term operations and maintenance services to private and public sector clients.
LogiServe®, a logistics management firm with offices in Wauwatosa and Rome, Ga., helps clients achieve optimum cost and performance in transportation, logistics and supply chain activities through tactical and strategic approaches.
Baker Tilly Virchow Krause, LLP, with staff totaling more than 1,350, Baker Tilly provides a wide range of accounting, tax, assurance, and consulting services. Ranked as the 16th largest* firm in the country, Baker Tilly serves clients from offices in Chicago, Detroit, Minneapolis, New York, Washington D.C., and throughout Wisconsin.
About WMEP
WMEP is a private, nonprofit organization committed to the growth and success of Wisconsin manufacturers. Since 1998, WMEP has helped to generate more than $1 billion in economic impact and create and save more than 13,000 state manufacturing jobs, according to results documented by customers. WMEP receives financial support from the Wisconsin Economic Development Corporation and the NIST Hollings Manufacturing Extension Partnership. WMEP also partners with many public and private organizations to serve Wisconsin manufacturers. For more information, visit http://www.wmep.org.
Contact:
Wisconsin Manufacturing Extension Partnership
Teresa Schell
Phone: (262) 345-3381
Wisconsin Economic Development Corporation
Tom Thieding
Phone: (608) 267-9661
