A cost-benefit analysis in any industrial manufacturing environment typically doesn’t focus on environmental compliance.
This needs to change!
In an era of increased risk to the environment, plus a PR outcry resulting from one mis-step; the environment needs to be at the top of any manufacturer’s priority list.
If you fail to remain compliant, you will face substantial fees. These fees will cut into your operational budget.
So, while you’re fixated on production speed and quality (for good reason), don’t forget to also consider your environment compliance and costs.
Prevention is Key
It can be hard to justify allocating budget towards environmental regulations when everything has been running smoothly for a long time. Besides avoiding a violation and fee, it can affect your bottom-line.
While your plant manager may not be taking environmental compliance seriously, federal and state agencies are getting more serious about it every day.
Are you prepared for an inspection? Don’t expect the leniency and grace periods of the past. Violations are becoming an opportunity for agencies to meet their new revenue quotas and continue to accrue funds.
As many agencies lately have been faced with downsizing, there is more pressure on factory inspectors to produce results (and dole out citations).
Implement a Comprehensive Environmental Program
Evaluate your specific required permits and compliance guidelines for your local area. Ensure your factory is not producing any unnecessary pollutants or causing harm to the citizens in your community.
Business is not just about money. A good business can no longer thrive, without good moral practices. Consumers these days will start to avoid your product if you’ve developed a reputation for toxicity and neglect.
Start small by making minor adjustments to existing processes and programs. This is much easier on the budget than implementing an entirely new program. Small, preventative steps with compliance go far and are generally inexpensive.
Perform a compliance audit. This will help you figure out how you’re currently doing and how you can improve. With this info gathered, you can develop a much more comprehensive plan of attack for compliance in the future.
Smoke Stacks & Product Contaminates
Since the passage of RoHS/WEEE in the European Union, many non-EU countries have passed similar legislation, including the United States. These laws pertain to the composition of your products as opposed to what's coming out of your smokestacks or out your drains.
You will face certain challenges to selling your product, as an OEM or otherwise -- if your products aren’t compliant with International environmental laws from. So, it doesn’t matter much if you contract out or off-shore, you’ll need to stay abreast with environmental regulations at home and abroad.
While the investment to maintain compliance is significant, it’s always more costly to not comply if you get caught (and likely you will).
Imagine having to redesign and re-work products and manufacturing processes, potentially postponing timelines significantly in the process. Suddenly you have less product and cannot meet demand… potentially having to scrap costs for the items that must be omitted from the product.
Don’t forget the labor cost of management oversight that may occur, if these compliance issues are not properly in-check.
Your Reputation is Everything
Violations rack up expenses, but the more intangible consequence is long-term and far more costly than the spreadsheets show. Imagine you made a small mistake and violated one of your local compliance regulations. Seemingly insubstantial, yet one lone citizen scientist takes that information and makes it a hot topic for local & regional news media.
Don’t be the bad guy, just comply!
The worst nightmare for many manufacturers is a product getting out into the market and being flagged as hazardous. Your brand reputation may take a bigger hit than it can afford. Your partnerships will suffer and your supply chain will need some serious TLC.
Take These Steps to Maintain Compliance
Avoid a catastrophe for your company, customers, and Planet Earth by taking a few simple steps toward being proactive & preventative:
- Stay on top of local laws, rules & regulations. Laws and regulations change regularly, whether it’s at home, across state lines, or overseas.
- Always apply the rules and regulations to your processes and products. Whether it has to do with labeling, contents, or even power-efficiency.
- Audit your components used in products to regularly ensure they are meeting compliance regulations.
Ask yourself and your plant managers how aware they are of the environmental requirements for your specific factory and products.
If any sense of uncertainty, it’s time to revisit the rules and perform an internal audit… before an outside agency comes in to perform one for you!