It has become obvious that many aspects of future operations, including facilities, will have green components. Here is one company’s thinking for transforming entirely to green and lean.

The green building movement has become one of the most evident examples of environmental values in business and industry. While the concept of “green” is anything but new, the word is now being used to promote environmentally friendly development and construction, driving businesses to overhaul the very way they do business.

Among companies large and small, no one wants to be considered an energy glutton, a materials waster or (eek!) an actual polluter, especially not businesses that are relying increasingly more on the positive marketing aspects of an environmentally friendly reputation.

As such, last year saw more than 70 percent growth in cumulative Leadership in Energy and Environmental Design (LEED)-registered and -certified projects, on top of more than 50 percent cumulative growth in 2006, Jerry Yudelson of Yudelson Associates wrote at iGreenBuild.com in December. There are currently 1,097 LEED-certified commercial projects worldwide, with 600 LEED-certified buildings in the U.S. alone, according to the United States Green Building Council (USGBC).

Yet for all the interest in saving energy, many companies also exaggerate even the smallest improvements for eco-status marketing purposes. These days, companies are piling on so many mentions of “green” or “sustainability” in their promotional materials that it often seems like a game of one-upmanship among over-caffeinated corporate marketers.

A particularly ambitious example of “walking the talk” when it comes to investing in green transformation of operations is Aerzen USA, a manufacturer of industrial blowers, compressors and vacuum pumps, which recently moved to a new green building in Coatesville, PA.

Aerzen USA, a wholly owned division of the German manufacturer Aerzener Maschinenfabrik, operates a little differently than many. Although more corporate leaders are doing something about environmental concerns, they aren’t taking their eyes off the bottom line, according to the results of a recent online study conducted by Supply Chain Management Review and Logistics Management magazines.

Aerzen USA, however, approaches decision making with a “triple bottom line” philosophy. That is, one that focuses on: 1) producing a long-term positive economic impact; 2) increasing the well-being of its employees and the surrounding community; and 3) increasing the health and vitality of the natural environment that supports the economy.

Put simply: profit, people and planet.

“While undertaking the design and construction of a ‘green’ facility has taken more time and money up front, we know that it will pay long-term ‘triple bottom line’ benefits,” the company has stated.

The company inaugurated its new $5 million+ building — 30,000 sq. ft. of assembly plant and 10,000 sq. ft. of office space — in April, with more than 50 employees operating there. Nearly 100 percent of the construction waste is recycled.

Among the many highlights of the new green building:

• “Earth tubes” to condition some of the air underground the production area;

• Infrared gas heat of high ceiling areas in manufacturing area;

• Geothermal heat pump heating and cooling office area;

• Concrete with 40 percent recycled content (fly ash);

• Plastered straw-bale walls;

• Highly efficient lighting in all areas and daylighting throughout;

• Pervious paving, infiltration beds and rain gardens;

• ENERGY STAR appliances;

• Water-efficient landscaping (wild meadow versus manicured lawns); and

• Even recycled office furniture.

Currently, the company expects to achieve 40 percent energy savings. This should increase dramatically when a solar farm is likely added to the production roof later. (The high-performance building has been designed to carry a large photovoltaic array on the manufacturing roof to convert sunlight into electricity.)

In addition to a number of major green features, there is an under-floor utility grid in production and office areas for future flexibility.

In fact, particular emphasis has been placed on building in future flexibility — to adapt to any changes in business, market and equipment needs with minimal expense, time and effort — and on supporting lean production. Early on, the company engaged the Delaware Valley Industrial Resource Center as a partner to help prepare for truly lean manufacturing.

“We’ve run very lean here. So our costs are low, our quality is high, and we can provide [customers] with a lot of value,” Ralph Wilton, marketing manager at Aerzen USA, said during a recent interview. “That’s very key.”

In 2004, the business sector shouldered 65 percent of environmental regulatory costs, with manufacturers paying an average of $4,850 per employee, according to an oft-cited 2005 U.S. Small Business Administration report. Today, despite damage-control efforts, manufacturers still face the stark reality that delivering on consumers’ increasingly vocal demands for eco-friendliness won’t be painless.

“ROI is elusive . . . especially because this is new,” Wilton wrote to us in an e-mail. “It costs more to build green. It takes more time because people do not know how to do it.

“The permits, townships, government and regulations are not set up for ‘green.’ This was the largest — and probably most expensive part (time, effort, education, etc.) — overcoming the paradigm of conventional construction,” Wilton continued.

The financial return for Aerzen is expected to come from leveraging the efficiencies of being lean, as the company expects its lean-green combination to bring a solid ROI over time.

Already one of the first green manufacturing buildings in Pennsylvania, the company recently learned it is slated to be the first Light Industrial / New Construction project to achieve LEED Gold certification in the state.

Resources

AerzenUSA.com/Green

The Business Case for Green Buildings 2008: Unprecedented Growth Meets Unrivaled Opportunities
by Jerry Yudelson, Yudelson Associates
iGreenBuild.com, Dec. 14, 2007

U.S. Green Building Council

The Green Supply Chain: LM and SCMR Readers are Thinking Green
by Sean Murphy
Supply Chain Management Review, June 2, 2008