Report suggests improved resource efficiency

The Envirowise Business Thrift Shift Report, which encompasses responses from more than 500 UK companies, reveals that almost three-quarters (73 per cent) of businesses have developed a more detailed knowledge of their spending and resource use as a result of the recession.

This includes everything from investment in raw materials, transport and energy, to staffing, equipment and professional services.

For the manufacturing industry, reduction of spend on raw materials and consumables was one of the biggest cutbacks (46 per cent), with a large number also minimising their water, energy and transport use.

This 'thrift shift' looks set to continue, with 95 per cent of respondents expecting to be more careful about how they use their resources once recovery comes.

Michael Savage, Envirowise manufacturing specialist, said: 'The manufacturing sector has been facing some serious challenges as a result of the recession and this is perhaps reflected in the number of survey respondents reducing staff costs during this period.

'However, it is also clear that for many companies this period of economic difficulty has stimulated a more resource-conscious mindset, galvanising environmental commitments that had perhaps been lower down the business agenda.

'We know from experience that resource efficiency goes hand in hand with profitability, so it is encouraging to see better management of raw materials, energy and water forming an important component of the business response to recession in the UK.

'Such an approach does not only lead to financial savings; it can also equip businesses to face increasing levels of environmental legislation and provides an important competitive advantage as customers become more environmentally conscious.

'These companies are not only more likely to survive the recession in the short term, but are also better placed to thrive when the economy begins to recover,' he added.

Gareth Stace, head of climate and environment policy of EEF, the Manufacturers' Organisation, said: 'The current recession has been a significant challenge for manufacturers and is going to continue to be the biggest challenge over the coming months - with cash-flow constraints and limited availability of credit further restricting spend.

'At present, it is only where the economic business benefits from resource efficiency are clearly visible that companies will prioritise investment in environmental improvements.

'However, we know there are many no-cost or low-cost opportunities for manufacturers to cut costs and we are working to help companies seize the longer-term challenge of getting back on the path of sustained economic growth.

'Increased resource efficiency across the whole economy will play an important part in this recovery,' he added.

The Envirowise Business Thrift Shift Report is available at www.envirowise.gov.uk/thriftshift2009.