Recession makes UK industry more resource efficient

London - The recession could leave a legacy of improved resource efficiency in the manufacturing sector as UK businesses, according to a survey of over 500 UK companies for the new Envirowise Business Thrift Shift Report. The study found that 73% of businesses had developed a more detailed knowledge of their spending and resource use in every area, from investment in raw materials, transport and energy, to staffing, equipment and professional services, as a result of the downturn.

Among manufacturers, one of biggest areas of cut back (46%) was in spending on raw materials and consumables, with many also minimising their water, energy and transport use. And looking ahead, 95% of respondents said they expected to be more careful about how they use their resources once recovery comes.

“The manufacturing sector has been facing some serious challenges as a result of the recession and this is perhaps reflected in the number of survey respondents reducing staff costs during this period (33%). However, it is also clear that for many companies this period of economic difficulty has stimulated a more resource-conscious mindset, galvanising environmental commitments that had perhaps been lower down the business agenda,” said Michael Savage, Envirowise manufacturing specialist.

According to Savage, it is now encouraging to see better management of raw materials, energy and water as this also equips businesses to face increasing levels of environmental legislation and provides an important competitive advantage as customers become more environmentally conscious.

Gareth Stace, head of climate & environment policy of manufacturers’ organisation the EEF, added: “The current recession has been a significant challenge for manufacturers and is going to continue to be the biggest challenge over the coming months – with cashflow constraints and limited availability of credit further restricting spend.

“At the present time it is only where the economic business benefits from resource efficiency are clearly visible that companies will prioritise investment in environmental improvements. However, we know there are many no-cost or low-cost opportunities for manufacturers to cut costs and we are working to help companies seize the longer term challenge of getting back on the path of sustained economic growth. Increased resource efficiency across the whole economy will play an important part in this recovery.”