Upping The Ante To Be "Green"

Many manufacturers are increasingly realizing that going green could be a new way for companies to save - or even make - more green, as in money.

"Going green isn't about hiring a hippie for your board," says Enterprise Minnesota president and CEO Bob Kill. "Plenty of companies find that what we consider 'green' are just plain good business practices: reducing costs, enhancing growth, and creating new markets."

Increasing energy efficiency is one way to go green and cut costs in the long run. The Red Wing facility of Archer Daniels Midland (ADM), which processes oil and meal for food products, recently reconfigured its system layout to take advantage of a more efficient drag conveyor system.

With the help of a rebate program from Xcel Energy, ADM opted for a system with two sections of drag conveyors and a static separator. The new system uses 74 percent less energy. ADM estimates saving $23,000 annually - enough for the project to pay for itself in just under five years.

For Lakeville-based New Morning Windows, going green is a consideration from their supply chain all the way through to the end product. When consumers think of green windows, they often only consider U-factors, or energy efficiency rating. New Morning wanted to move beyond just that narrow definition of green says sales and marketing director Alicia Richman.

With more than 30 employees and $7 million annual sales, New Morning is finding success in the green window market.

"Instead of only energy standards, we wanted to go a step beyond so that everything going into the product would be green," Richman said. "It's not just about U-factors, it's the whole company direction."

New Morning planned to create a product that was both energy efficient and environmentally sustainable. That meant asking suppliers for products that contained low or no volatile organic compounds, or chemicals that contribute to air pollution. It took nearly 18 months to reorganize a supply chain that fit with New Morning's vision.

While it was difficult to find products at first, Richman says that now even some of their suppliers are driving innovation and creating new products as everyone keeps "upping the ante" to be green. "Now it's becoming easier because other companies are getting into green," Richman said.

In addition, New Morning uses wood certified by the Forest Stewardship Council, an organization that ensures forests are managed responsibly, and the company offers a recycling program for homeowners to dispose of old windows.

Central Container in Brooklyn Park also looks at ways to increase efficiency by working with their supply chain. The company, which manufactures custom corrugated cardboard boxes, folding cartons, paper boxes, product packaging and custom containers, is using the Green Suppliers Network to identify new ways to reduce waste.

The Green Suppliers Network, a Manufacturing Extension Partnership program, helps manufacturers to engage their suppliers in low-cost technical reviews to identify strategies for improving process lines and using materials more efficiently.

Working with a major supplier, Central Container is moving towards electronic invoices to save paper, administration time, and costs. Ed Polin, lean enterprise manager at Central Container, expects the new initiative to start paying dividends soon.

"The nice thing is that this is something green and it really saves money," Polin said.

"Advocates like to talk about 'reduce, reuse, recycle," which is pretty good business advice in general," Kill said. "The more efficient you are about the use of your resources, the healthier your business becomes."

Look for more information on green in the upcoming March/April issue of Enterprise Minnesota magazine article "8 Ways to Green Your Profits," and you also may sign up to attend Enterprise Minnesota's upcoming event The Business Case for Going Green.

The Business Case for Going Green

When: March 18, 2009, 8:00 - 11:30 a.m.
Where: Comcast (9705 Data Park, Minnetonka, MN)
Cost: $79 or Group Rate 4 for $237



Who Should Attend?
CEOs, General Managers, CFOs, CIOs, VPs, Mid Level Managers, & Supervisors

What to Expect?
Can going green help save costs, increase profitability, and grow your organization? There is a business case for green. Learn from those on the leading edge of green about

• What it means for an organization to "go green"
• Cost savings to an organization that applies green principles techniques
• Embracing green to grow markets, products, and business

Presenters:

Lynn Olson, Corporate Scientist, Environmental Health and Safety, Ecolab
Sustainability is fundamental in Ecolab's products and services. From concentrated, solid formulations to innovative packaging and dispensing methods, their products are designed to help increase safety, lower the use of water and energy, and reduce the chemicals and waste released to the environment. Strengthened by their dedication to social responsibility, these offerings provide business value to customers and the global economy.

Eric Jackson, Chief Executive Officer, Carbonlesspromise
Jackson is the founder and CEO of Stillwater-based Carbonlesspromise. His company helps take steps to reduce a carbon footprint, making companies a very attractive member of the supply chain to large companies looking to do business with green suppliers.

Louis Jambois, President, St. Paul Port Authority
Jambois heads the St. Paul Port Authority, an organization that focuses on contributing to the East Metro's growth and prosperity by providing businesses with cleaner land on which to expand, space on the Mississippi River to receive and ship commodities efficiently, loans for real estate and equipment purchases, and job training and career development for workers.

Ron Lyrek, President, Interscapes, Inc.
Lyrek is the president of Interscapes, an architectural woodworking firm in Minneapolis. His company was recently featured in Enterprise Minnesota magazine for taking steps to go green and save costs on things like energy, fuel, and trash pickup. In everything it makes, Interscapes Inc. offers the option of Leadership in Energy and Environmental Design (LEED) - certified green products or products made out of materials that are environmentally sustainable and nonpolluting.

Timothy Nolan, Sustainable Industrial Development Coordinator, Minnesota Pollution Control Agency
Tim has 26 years experience working at the forefront of the State of Minnesota's efforts to advance sustainable development policies and practices. Since 2002, he has coordinated eco-industrial initiatives through education, technical assistance, and project development. He is a member of the International Society for Industrial Ecology and serves on the Board of Directors for the North American Eco-Industrial Development Council. As a former board member for the Institute for Market Transformation to Sustainability, he co-chaired a committee to create the first market-based Sustainable Textile Standard.

Register online at www.enterpriseminnesota.org or call our events line at 612.455.4239.

sponsored by: