September/October 2011 | Trade and Industry Development

September/October 2011

Trade & Industry Development Magazine

Trade & Industry Development - September/October 2011

The manufacturing process has changed dramatically over the years, but at the core it is still the art of creation and production. Everything from shoes to CPUs to airplanes owes its existence to manufacturing. And in the U.S., the long overlooked importance of manufacturing is starting to reemerge. One of the few bright spots in our halting economic recovery has been manufacturing, and now the realization is dawning on policy makers that a “knowledge-based” economy cannot stand on its own and be sustainable unless it is also linked to the application of that knowledge – which means manufacturing.

In this issue, we examine manufacturing from several different angles, and offer advice to executives looking to expand their facilities. Paul Hampton, of Newmark Knight Frank, offers pragmatic solutions to companies that need to add facilities but are also focused on environmental initiatives. In his article on working with utilities, Larry Gigerich, of Ginovus, provides significant insight into what indications to look for in choosing a worthy utility partner. And Harry Moser, founder of the Reshoring Initiative, provides bottom-line value in his examination of the total cost of ownership, and how it relates to sourcing components and siting facilities. Also, Jennifer Alten examines the benefits offered by Foreign Trade Zones, and Linda Dobel takes a look at some of the designated sites in North America. Douglas K. Woods, president of the Association for Manufacturing Technology, provides a clear snapshot of manufacturing in America and the developing trends. And Dennis Donovan, of WDG Consulting, charts the outlook for facility expansions throughout the rest of the year and into 2012.
 

In this issue

Manufacturing: Furthering the Triple Bottom Line Through the Site Selection Process

BY: Paul Hampton

Regardless of personal opinion, any astute observer of consumer culture and corporate strategy should acknowledge sustainability is affecting business activities. Despite the cloud of catchy, feel-good buzzwords that have overshadowed any meaningful discussion of the issue, the impact “sustainability” has on corporate goals and project initiatives has been real and tangible. Driven by consumer expectations, marketing and the bottom line, language about sustainability has found its way into virtually all corporate charters and project goals. In fact, a 2010 KPMG/The Economist Intelligence Unit survey of over 350 global executives showed as many as 72 percent felt the benefits of eco-friendly initiatives outweighed the costs. In manufacturing, sustainability initiatives typically manifest themselves in one of the following ways: highly efficient or LEED certified buildings, optimization of supply chain, recycling programs and/or renewable power generation. Typically these initiatives are addressed during the final implementation phase of a new project (facility construction, remodeling, plant expansion, etc.). However, waiting until final implementation to address sustainability ignores the fact that all of these endeavors can be impacted, positively or negatively, by project location and physical site. For example, site characteristics can dramatically affect solar loading. Likewise, local utility programs can limit or enhance the potential for onsite or offsite renewable energy generation. In short, site selection can determine not only the success of manufacturing related sustainability initiatives, but more importantly, site selection can impact the cost and efficiency of implementation. more....