Sustainable practices drive profitability for manufacturers

Sustainability is no longer a ‘nice to have’ trend in UK manufacturing – it’s becoming a key driver of profitability. 

According to our recent research, 72% of UK midmarket manufacturers have seen increased profitability as a result of adopting more sustainable practices.

A growing focus on sustainability

The study highlights the extent of the UK manufacturing sector’s commitment to sustainability, with 84% of respondents identifying it as a priority. More than two thirds (71%) of organisations now have dedicated resources to address sustainability, and three quarters report having a Net Zero plan in place.

“Operating more sustainably while maintaining market share and controlling costs has historically been a challenge for any UK midmarket manufacturer, but this research shows how seriously organisations are now taking sustainability,” said David Coste, President, North & Western Europe, Forterro. “It’s not just a corporate responsibility but also a driver of financial success. Manufacturers are aware of this and are taking purposeful, accountable steps to be sustainable.”

Focus areas: Supply chains and digitalisation

Supply chains are a primary focus of sustainability efforts for UK manufacturers. Our research reveals that 85% of respondents are digitalising supply chain and logistics operations to improve transport efficiency. This aligns with broader trends in supply chain localisation, with 46% of manufacturers motivated by better control, 43% by cost reduction, and 38% by sustainability goals.

The push for localisation also reflects evolving customer demands, as manufacturers respond to shifting market expectations for greener practices and more sustainable products. Localisation is likely to become even more of a priority for manufacturers if further restrictions on global trade emerge as a result of the recent US election. 

Technology: A catalyst for sustainable operations

Technology, particularly Enterprise Resource Planning (ERP) systems, plays a pivotal role in enabling sustainable operations. ERP solutions help manufacturers manage resources more efficiently, reduce waste, optimise inventory and ensure compliance with environmental regulations. Our research found that 82% of respondents believe ERP contributes significantly to their sustainability initiatives.

“For midmarket manufacturers, an ERP system is a highly effective way to manage resources more responsibly and take meaningful steps towards Net Zero,” Coste added. “It’s a proactive measure that can both reduce costs and help companies meet increasing demand for environmentally friendly products and operational practices.”

Sustainability: A strategic advantage

Sustainability isn’t just about meeting regulations or fulfilling corporate social responsibilities – it’s a strategy that directly impacts the bottom line. As more manufacturers adopt technologies and sustainable practices, the industry is well-positioned to thrive in an increasingly eco conscious and competitive market.