Aug. 13, 2008 - Seventy-one percent of supply chain executives believe the cost of greening manufacturing is getting lower as profit potential soars, according to a new survey.

A whopping 95% of the 3,000 North American executives polled agree that green manufacturing will continue to expand, citing increased profits (66%) and improved efficiency and product quality (43%) as key drivers.

Manufacturing executives report implementing a variety of green initiatives to build their business. The most popular choice with 65% of respondents, was investing in recycling and reuse programs. Additionally water reduction programs (58%), continuous improvement (54%), energy management (50%),environmental management (46%), materials management (36%), establishing a corporate green team (33%), and supplier management (32%) are all reported to be making manufacturing leaner, greener and more profitable.

What's pushing manufacturers to adopt green initiatives where once there was such reluctance to invest? According to the survey, 64% of executives expect green initiatives to further their overall corporate sustainability strategy and vision, 62% see green initiatives as a good response to customer interest in environmentally friendly products and services, and 51% feel they are improving their public reputation.

On the operations side, 52% note cost reduction as a key benefit, and 47% see improved efficiency when taking on green initiatives.

The results of this study suggest that it's the change in the attitude of manufacturing executives that has made the biggest difference. When asked how they view green manufacturing initiatives, 84% of respondents said that they see them as part of an overall optimization strategy.

"This marks a major sea change, and implies that environmental programs are becoming part of the standard arsenal of strategies employed to boost innovation and optimize operations," says Katharine O'Reilly, EFT's senior vice president of environmental research.

The study certainly supports that with 96% of executives agreeing that environmental initiatives and traditional business objectives can and should be combined to move businesses forward.

The report, by research firm Eye for Transport, is available for free download (for a limited time) here.