November 30, 2022 Economic Climate Holding Back 70% of US Manufacturers

Decision makers remain confident in their organisation’s role in achieving net zero carbon emissions.

Indiana, US – Almost seven-in-ten (67%) manufacturing decision makers in the US agree that their sustainability strategy has been restricted due to cost pressures. This is according to research findings by Visual Components.

The stalling of progress in green initiatives is also revealed by 60% of respondents saying that less than 50% of the materials used in the manufacturing process are sustainable, while an even higher percentage (71%) state that less than 50% is currently powered by renewable energy.

There is also room for improvement when it comes to progress in sustainable initiatives, with only a third of US organisations focusing on waste reduction (33%) and less than half on improving efficiency (48%) and less than a quarter on reduction of power usage (24%), with the latter most likely driven by rising energy costs. This is despite confidence among decision makers that their business will play a role in the global drive for net zero carbon emissions (69%).

Rising economic pressure will likely extend beyond impacting sustainability and also push organisations towards a reshoring strategy. In fact, over four-in-ten (43%) are planning to bring their operations back to the US, with increased costs associated with maintaining operations across several countries and transporting goods across long distances likely to be playing a role.

While only 17% currently cite a reduction in needed transportation as a sustainability strategy, this will likely increase as reshoring gains in popularity. The need to reshore will also escalate as decision makers identify supply chain issues (44%) and the challenging economic environment (36%) as the biggest challenges.

However, organisations need to ensure that sustainability stays front-of-mind, as decision makers state that employees are holding greater power in driving sustainability strategies (65%).

Graham Wloch, Director of Business Development, Visual Components, said: “For many manufacturers, the current difficult economic climate acts as a barrier to putting green strategies in place. With net zero targets and employee demand highlighting the importance of sustainability, this can no longer be allowed to continue. Technology such as simulation software will be key in allowing manufacturers to move forward confidently to reduce waste; optimise floor layouts; enable communication of plans to colleagues remotely and bring down emissions.”

About Visual Components
Founded by a team of simulation experts and amassing over 20 years in business, Visual Components is one of the pioneers of the 3D manufacturing simulation industry. The organisation is a trusted technology partner to a number of leading brands, offering machine builders, system integrators and manufacturers a simple, quick and cost-effective solution to design and simulate production processes. To move to its next stage of growth and enhance its product offering, Visual Components has acquired Delfoi, a pioneer company in robot offline programming (OLP) software solutions. For more information please visit: https://www.visualcomponents.com/

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