Manufacturing industries in countries worldwide are steering towards cleaner technologies to stay competitive. For Singapore to maintain its competitiveness, its manufacturing sector must also take a low-carbon path, said Dr Song Bin, director of the Sustainable Manufacturing Centre, SIMTech.
Speaking at the National Sustainability Conference on Thursday, Dr Song noted that countries such as South Korea, China, Japan, Germany and the United States have already begun this move.
Global drivers for this shift include the raised awareness of environmental concerns, greenhouse gas (GHG) reduction targets, and increased customer awareness.
Business considerations such as branding opportunities, energy and raw material prices, supply chain management, and cost savings are also some factors.
Across these areas, both public and industry awareness has been on the rise since 2007, said Dr Song. While awareness is increasing, there is a need for more successful business case studies to help highlight the gains made by pioneering projects.
Specifically in manufacturing, elimination of waste, a push for energy efficiency, and closed-loop processes were areas that needed attention. Some improvement measures include KPIs which centre on materials, processes, and the carbon footprint of these operations.
According to Dr Song, businesses increasingly understands that waste should be viewed as a resource. In this light, waste can be a value-add through resource recovery. Many companies in Singapore are beginning to awaken to this commercial opportunity, he said.
A case study of LHT Holdings demonstrated how a local company engaged in wood recycling from demolition turned out useful products from waste. Some of the company’s finished recycled wood products include flooring, doors, and shipping palettes, Dr Song highlighted.
He also flagged significant potential for energy efficiency, especially through heat insulation and heat recovery. He noted that real-time visualization systems exist to monitor the energy consumption and production volume of manufacturing. These systems allow manufacturers to adjust their processes, and optimise it for energy efficiency.
Securing new investment in technologies is often tricky especially if using traditional models. Dr Song questioned the typical calculations for return on investment (ROI) which are critical in swaying investment decisions.
“Is the ROI correct?” he asked, noting that assumptions should include potential for return from branding impact, long term strategic advantages, and operational cost savings. Taking a broad-level, strategic view of technology investments will help enable a shift towards cleaner manufacturing, he said.