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| FOR IMMEDIATE RELEASE January 2010 |
For more information please contact: Muriel Mosher Tel: 207-623-0680 |
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MEP-EPA Partnership Achieves 10:1 Return for Firms in New Hampshire, Maine, and Massachusetts CONCORD, NH - The results of a pilot project to help New England Tri-state manufacturers cut energy costs were announced today by the New Hampshire Manufacturing Extension Partnership (NH MEP). Touting the energy savings achieved by New Hampshire firms participating in the initiative, NH MEP expressed its intention to offer its new Lean Energy and Environment program to manufacturers throughout the state. “The energy savings achieved by the companies participating in the pilot project exceeded our expectations. For a modest $140,000 investment, the Tri-state project generated more than $1.4 million in expected energy savings and operational efficiencies for the six participating manufacturers. The integration of the EPA energy toolkit into our MEP lean training program has the ability to help overcome one of the largest competitive barriers that face New England manufacturers -- the high cost of energy,” said NH MEP Director of Operations Zenagui Brahim. The New Hampshire, Massachusetts and Maine Manufacturing Extension Partnerships (MEP) embarked on a collaborative initiative with the U.S. Environmental Protection Agency (EPA) to evaluate EPA’s energy toolkit and integrate it into the MEP’s lean training programs. NH MEP also collaborated with the NH Department of Environmental Services and the NH Department of Resource and Economic Development to launch the pilot. The new integrated approach utilizes lean techniques, driven by energy and environmental metrics, to target opportunities for energy savings. Unlike conventional methods of reducing energy consumption, the pilot project identifies manufacturing process inefficiencies that, when improved, can reduce or eliminate the need for energy in the first place. The integrated Lean Energy and Environment program was pilot tested in six regional manufacturing clients, two in each of the three participating states. In New Hampshire the Lean Energy and Environment initiative was implemented by BAE Systems of Nashua, an electronics manufacture, and High Liner Foods of Portsmouth, a leading seafood processor and one of the largest energy-consuming manufacturers in the state. The Tri-state initiative achieved a highly successful return on investment. For $140,000 in direct and program management costs ($67,000 coming from the EPA and $73,000 in associated match dollars), the project produced a total of $1.4 million in identified and expected impacts from the six participating manufacturers. These included: • Energy savings exceeding $652,000 per year; • Environmental exceeding $34,000 per year; and • Lean manufacturing savings exceeding $750,000 per year In addition to achieving an impressive ROI, the project demonstrates that going “lean and green” is feasible for small manufacturers. Cost concerns and long payback periods can deter companies from implementing environmentally sustainable practices. Small manufacturers in particular may want to implement green manufacturing practices but fear that they cannot afford high upfront costs, particularly in a sluggish economy. That barrier does not exist with many of the energy-saving proposals identified in this pilot project, said Brahim. BAE Systems identified $40,000 in energy savings opportunities at its 33,000 sq. foot facility. Implementing these initiatives, which the company’s management termed “low hanging fruit,” required an investment of $48,000, including internal labor costs. The company expects a 100 percent payback on its investment in 14 months. “This pilot project has helped bust the myth that going green is a financial drag on a company. Manufacturers should consider it a natural extension of lean operations and recognize that they must take an aggressive approach to cutting energy costs in order to remain competitive,” Brahim said. The pilot project identified more than $200,000 in energy savings opportunities for High Liner Foods: • Electricity: $108,802 • Compressed air: $48,007 • Water consumption: $21,500 • Hydaulic Power: $13,092 • Heat recovery: $26,600 High Liner targeted $90,000 in energy savings projects for the first year and expects the payback on its investment to begin immediately. “This project brought immediate payback and began improving our bottom-line performance from day one,” said Christianson. “Some investments have a very long payback, but the energy saving practices we implemented with the help of NH MEP quickly demonstrated their value. In our experience, there’s no excuse for not taking advantage of the resources NH MEP has to offer.” The New Hampshire MEP operations director noted another valuable aspect of the MEP initiative. It can help manufacturers meet the growing consumer demand for green products and the ever-increasing number of companies with green supply chain standards. “Companies like Northrop Grumman are asking suppliers to rate their own environmental performance on a Green Supply Chain Report Card in five categories that includes energy,” Brahim stated. “The MEP Lean Energy and Environment program can help manufacturers satisfy green supply chain standards.” Brahim concluded by summarizing four main benefits of adopting a lean-energy approach: • first, immediate cost savings through decreased energy consumption that go directly to the bottom line' • second, compliance with green supply chain requirements that many large manufacturers and retailers increasingly require of their suppliers; • third, a marketing advantage that can come from branding your company’s products green; and • finally, the environmental benefit that results from decreased energy consumption “This pilot project sets a new standard for lean training and takes the traditional lean toolkit to the next level. Every company should be looking for ways to make their operations both lean and green. NH MEP’s Lean Energy and Environment initiative will help companies achieve process improvements that cut costs, improve efficiency and yield environmental benefits. It brings bottom line results, with immediate paybacks. It’s good for companies, it’s good for consumers who want to buy green products, and it’s good for New Hampshire” Brahim said. |
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