How to Overcome Challenges in Sustainable Manufacturing
Actionable steps to lower costs, modernize legacy equipment, align suppliers, and track metrics for more sustainable, efficient manufacturing.
Sustainable manufacturing is a growing priority for businesses in 2025, driven by stricter regulations, shifting consumer expectations, and the need for efficiency. However, challenges like high upfront costs, outdated systems, and supply chain misalignment often stand in the way. Here’s a quick summary of actionable strategies to address these obstacles:
- High Costs: Start small with energy audits, phased technology upgrades, and renewable energy options supported by incentives.
- Outdated Systems: Audit current equipment, retrofit with sensors, and modernize gradually to avoid disruptions.
- Supply Chain Issues: Set clear sustainability standards for suppliers, offer support, and conduct regular audits.
- Tracking Progress: Use clear metrics (e.g., energy use, emissions, waste) and integrate them into daily operations for accountability.
Insights Series: Sustainability Challenges in Manufacturing
Challenge 1: Managing High Initial Costs and Limited Resources
The biggest hurdle to sustainable manufacturing often isn't the lack of commitment - it's the upfront cost. For small to mid-sized manufacturers working with tight budgets, the initial investment in green technologies and renewable energy can feel overwhelming.
But achieving sustainability doesn’t require a complete overhaul all at once. Small, strategic steps can lead to significant long-term benefits. The challenge lies in identifying where to begin and prioritizing investments that deliver lasting value. Here are some practical, budget-friendly approaches to tackle high costs and limited resources.
Find Quick-Win Efficiency Improvements
Start by optimizing what you already have. Many manufacturing facilities unknowingly waste energy and resources due to hidden inefficiencies. Fixing these doesn’t require massive spending but can yield noticeable savings.
Conduct energy audits to uncover issues like outdated lighting systems, poor insulation, or inefficient equipment usage. Addressing these areas can reduce energy bills and improve overall efficiency. Additionally, streamlining production workflows to minimize waste and scheduling regular preventive maintenance can keep operations running smoothly while avoiding costly breakdowns.
Implement Technology Changes in Phases
Modernizing an entire facility in one go can be financially daunting. Instead, take a phased approach. By starting with pilot projects in a single department or production line, you can minimize financial risk and gather valuable data on what works.
For example, install cost-effective sensors to monitor energy use and waste. Once you see results, you can gradually introduce more advanced tools, such as AI-powered systems or cloud-based supply chain solutions. This step-by-step method allows you to scale improvements while staying within budget.
Switch to Renewable Energy and Local Suppliers
Energy expenses often make up a significant portion of manufacturing costs. Transitioning to renewable energy can help lower these expenses while reducing your carbon footprint. Whether through power purchase agreements (PPAs) or on-site solar installations - especially when supported by government incentives - renewable energy becomes a practical option.
Additionally, sourcing materials locally can cut transportation costs, shorten delivery times, and improve supply chain reliability. Review your supplier network to identify local options that align with your sustainability goals. These incremental adjustments not only save money but also set the foundation for a more sustainable future in manufacturing.
Challenge 2: Updating Legacy Systems for Sustainability
Bringing outdated systems into the modern era is a key step toward achieving the sustainability goals discussed earlier. Many manufacturers rely on machinery and processes that have been in place for decades. While these legacy systems may still function, they often consume excessive energy and lack the advanced monitoring tools of newer technologies. The challenge lies in upgrading these systems without disrupting production or exceeding budget constraints, which requires careful planning and execution.
The hurdles are both technical and organizational. Employees may resist changes to familiar routines, and decision-makers might hesitate to invest in updates when existing systems appear to be working fine. However, sticking with outdated infrastructure comes with hidden costs - inefficiencies, wasted resources, and missed opportunities for improvement. Tackling these issues head-on can make the transition both smoother and more impactful.
Audit Current Systems for Weaknesses
Before diving into upgrades, you need a clear understanding of your starting point. A thorough audit can pinpoint which systems consume the most energy, where bottlenecks occur, and which processes generate the most waste. This analysis forms the foundation for prioritizing updates.
Map out your entire production process, from raw materials to finished products, and involve frontline staff to uncover inefficiencies and hidden resource drains. Pay close attention to energy usage, material waste, and areas where data collection is either limited or nonexistent. Often, a handful of machines or processes are responsible for the majority of inefficiencies.
Identify compatibility issues between older equipment and newer technologies. Legacy systems that can’t communicate with modern software create data silos and limit your ability to monitor operations effectively. Determine which systems need complete replacement and which can be enhanced with add-ons like sensors or connectivity modules to boost their performance.
Also, calculate the true cost of maintaining outdated systems. Consider energy usage, repair frequency, downtime, manual processes, and the missed opportunities for real-time data insights. This comprehensive financial overview can help make a strong case for modernization to stakeholders who might otherwise focus solely on upfront costs.
With these insights, you can create a clear roadmap for upgrading your systems.
Create a Step-by-Step Modernization Plan
Armed with a full understanding of your current systems, you can develop a phased plan to modernize without overwhelming your operations. Trying to upgrade everything at once can lead to confusion and disruptions, so a gradual approach is often more effective.
Focus on high-impact areas first. Start with the systems that are the least energy-efficient or generate the most waste, as they’ll likely deliver the quickest returns. Look for opportunities to schedule upgrades during routine maintenance to minimize downtime.
Begin by retrofitting existing equipment with IoT sensors. These sensors can track energy use, temperature, vibration, and other key metrics without requiring major overhauls. By gathering real-time data, you can identify inefficiencies and even predict maintenance needs, reducing the risk of unexpected breakdowns.
Consider using middleware to bridge the gap between old equipment and modern analytics platforms. This approach allows you to retain functional legacy machinery while benefiting from advanced monitoring and optimization capabilities.
Pilot test your updates. Start small by implementing changes in a specific area or process, then refine your approach before rolling it out across the entire facility.
When choosing new technologies, prioritize flexibility for future upgrades. Opt for solutions that use open standards and can integrate with emerging technologies. Avoid proprietary systems that could lock you into a single vendor or make future changes difficult. The goal is to build infrastructure that can evolve alongside your sustainability needs.
Manage Internal Resistance to Change
Even the best technology won’t succeed without buy-in from your team. Employees may worry about job security, and management might fear productivity losses during the transition. Addressing these concerns is just as important as the technical side of the upgrade.
Clearly explain the benefits. Regularly communicate how sustainability improvements will reduce costs, create a healthier work environment, and strengthen the company’s financial position. By connecting these goals to tangible outcomes, you can make the changes feel more relevant to your team.
Involve employees in the planning process. Don’t present updates as decisions made in isolation - form cross-functional teams that include operators, maintenance staff, engineers, and managers. When employees contribute to designing new processes, they’re more likely to support and advocate for the changes.
Offer hands-on training tailored to your workforce. Don’t assume younger employees will automatically grasp new systems or that experienced workers can’t adapt. Provide clear instructions, reference materials, and designate “super users” who can assist colleagues with troubleshooting.
Address job security concerns directly. Reassure employees that modernization aims to enhance their roles, not eliminate them. Highlight how new technologies can free them from repetitive tasks, opening up opportunities for more engaging and skilled work. Whenever possible, reassign roles rather than cutting positions, shifting employees from manual data entry to data analysis or from reactive maintenance to predictive optimization.
Set clear accountability for sustainability goals. Assign specific metrics - like energy reduction or waste minimization - to individuals or teams, and tie these objectives to performance reviews and recognition programs. This creates a sense of ownership and reinforces the importance of the changes.
Celebrate early successes. Share stories of how new systems have prevented breakdowns or reduced energy consumption. These visible wins can turn skeptics into supporters and build momentum for future upgrades.
Addressing both the technical and human aspects of modernization ensures a smoother path toward a more sustainable manufacturing operation.
Challenge 3: Working with Supply Chain Partners
Sustainability in manufacturing doesn’t stop at your factory doors. If even one supplier operates with unsustainable practices, it can undermine your entire effort. Since raw materials often pass through multiple vendors, ensuring your supply chain aligns with your goals is a critical step.
To build on internal improvements, it’s vital to extend your sustainability strategy to external partners. Synchronizing your supply chain creates a unified approach that reinforces your broader objectives.
Set Clear Sustainability Standards for Suppliers
Your sustainability goals won’t mean much if your suppliers aren’t on the same page. Start by defining what sustainability looks like for your supply chain and establish clear, measurable expectations.
A supplier sustainability scorecard can be a helpful tool for outlining specific requirements. Set precise metrics such as renewable energy usage, waste reduction, water consumption, or carbon emissions per shipment. Incorporate these standards into procurement contracts, complete with provisions for regular audits and mandatory reporting on key indicators.
When evaluating new suppliers, include sustainability criteria alongside considerations like price and quality. Ask for documentation of environmental management systems and certifications. For existing suppliers, introduce new requirements gradually to avoid causing financial strain, especially for smaller partners.
Using tiered requirements can help you manage a variety of suppliers. For example, set baseline standards for all vendors while creating advanced tiers for strategic partners that demand higher renewable energy use or third-party audits. This acknowledges that not all suppliers have the same resources but still encourages progress across the board.
Beyond setting standards, motivate suppliers with support and incentives. Instead of simply imposing demands, consider offering resources to help them succeed. Larger manufacturers might provide technical assistance, share best practices, or even help suppliers secure financing for sustainability upgrades. By positioning yourself as a partner, you encourage suppliers to make meaningful changes.
Use incentives to drive compliance, such as prioritizing purchases from compliant suppliers, offering longer contracts, or recognizing their efforts through awards or public acknowledgment.
Finally, ensure these standards are more than just words on paper. Conduct regular audits to verify that suppliers are meeting expectations. Use a mix of scheduled and unannounced inspections, and consider third-party audits for critical suppliers to maintain impartiality. If issues arise, work collaboratively with suppliers to create corrective action plans with clear deadlines and milestones.
Keep detailed records of supplier performance and audit results. These records demonstrate your commitment to sustainability and help address questions from customers and stakeholders.
Challenge 4: Tracking Progress and Maintaining Long-Term Commitment
Putting sustainable practices into action is just the start. The real challenge lies in keeping those efforts measurable and seamlessly integrated into daily operations. Without clear tracking and consistent commitment, even the best initiatives can lose momentum, especially when market conditions shift. To stay on course, it's crucial to make sustainability progress both visible and actionable by defining metrics that turn ambitious goals into practical steps.
Identify Key Sustainability Metrics
The right metrics turn sustainability from a lofty idea into something you can measure and act on. Consider tracking these:
- Energy Consumption: Measure total energy use (in kWh) and energy intensity per unit of production. This helps identify where efficiency improvements are happening - or where they're needed.
- Carbon Emissions: Track direct emissions from operations and indirect emissions from purchased electricity, expressed in metric tons of CO₂ equivalent. Compare this against production volume or revenue to gauge carbon intensity.
- Waste Generation and Diversion Rates: Record how much waste is produced and the percentage diverted from landfills through recycling, composting, or reuse.
- Water Consumption: Monitor total water use and water intensity per unit of production. In some cases, basic water quality indicators might also be relevant.
- Material Circularity: Assess how much of your materials are recycled or renewable, and evaluate whether your product designs support reuse, recycling, or easy disassembly.
- Supplier Sustainability Performance: Evaluate your suppliers' environmental practices and track the portion of your supply chain that meets your sustainability standards.
Regular tracking - whether daily, weekly, or monthly - ensures you can spot trends quickly and make informed adjustments.
Build Clear Reporting Systems
After identifying the right metrics, the next step is embedding them into a reporting system that supports day-to-day decision-making. These systems should provide immediate insights by integrating sustainability metrics directly into daily operations. While the specific tools or methodologies may vary, the ultimate goal is the same: making sustainability a natural part of how the business is managed every single day.
Conclusion: Moving Forward with Sustainable Manufacturing
Sustainable manufacturing isn’t about flipping a switch and transforming overnight. It’s about taking deliberate, measurable steps to tackle real challenges while positioning your business to thrive. From managing high costs and outdated systems to improving supply chain coordination and tracking progress, these hurdles can be addressed with a practical approach.
Challenges don’t have to be roadblocks - they can become opportunities. By implementing phased technology upgrades, auditing legacy systems, enforcing stricter supplier standards, and defining clear performance metrics, you can turn obstacles into actionable strategies.
Forward-thinking manufacturers see sustainability as a competitive advantage. Cutting energy use per unit of production doesn’t just help the planet - it lowers costs. Tracking carbon emissions in metric tons of CO₂ equivalent prepares you for future regulations. Transparent reporting systems create accountability and foster continuous improvement.
The path forward starts with small, focused actions. Identify one area where you can make a noticeable impact. Maybe it’s sourcing materials locally to reduce transportation emissions or addressing the biggest energy-consuming process in your facility. These small wins build momentum, showing that sustainability isn’t just a concept in a report - it’s a core part of daily operations that influences decisions and drives performance.
The journey won’t be without its bumps. You’ll encounter resistance, budget constraints, and competing priorities. But ignoring these challenges only adds to your risks and costs. Regulatory demands are tightening, customers want transparency, and inefficiencies tied to waste and energy use hurt your bottom line. Sustainable manufacturing isn’t a passing trend - it’s the key to staying competitive in a world that values efficiency, accountability, and long-term resilience.
FAQs
How can small manufacturers adopt sustainable practices on a limited budget?
Small manufacturers can adopt eco-friendly practices without overspending by focusing on straightforward, budget-friendly strategies. Start by improving how resources are used - simple changes like upgrading to energy-efficient equipment or tweaking processes to use less water and power can make a big difference. Additionally, recycling materials and finding ways to repurpose waste not only save money but also contribute to a healthier planet.
It's also smart to stay up-to-date on local and federal sustainability regulations. Following these rules can often lead to perks like grants, tax breaks, or partnerships that lighten financial pressures. Partnering with suppliers who share your green values can further cut costs while keeping your business aligned with sustainability goals.
For those exploring careers in sustainable manufacturing, platforms like scale.jobs can be a game-changer. They offer tools like AI-driven resume builders and human support to help you navigate the job market and secure roles in this expanding field with ease.
What are the best ways for manufacturers to upgrade outdated systems for sustainability while minimizing production disruptions?
Upgrading legacy systems to support sustainability might seem daunting, but with a well-thought-out plan, it’s entirely manageable. Begin by thoroughly evaluating your existing systems to pinpoint inefficiencies and determine which areas need the most attention. From there, consider gradually introducing upgrades - like energy-efficient equipment or smart technology - to reduce disruptions and keep operations running smoothly.
Engaging your team is a critical part of the process. Offer training on the new systems and maintain clear communication about the upcoming changes to ensure everyone is on the same page. Bringing in specialists or consultants can also simplify the transition and address any technical challenges. By taking a step-by-step approach and fostering open dialogue, manufacturers can modernize their operations effectively while keeping production steady.
How can manufacturers ensure their supply chain partners support their sustainability goals?
To align supply chain partners with your sustainability goals, it's crucial to take a proactive and clear approach. Start by articulating your sustainability standards and expectations to all partners. Transparency in communication helps set the tone for collaboration and accountability.
Regular audits are another essential step. These evaluations not only check compliance but also highlight areas where improvements can be made. Beyond audits, work hand-in-hand with your partners to adopt greener practices. This could mean reducing waste, streamlining logistics, or sourcing materials that are environmentally friendly.
It’s also wise to prioritize suppliers who already hold sustainability certifications or have initiatives in place. To encourage compliance, consider offering perks like long-term contracts or exclusive partnerships to those who actively support your sustainability goals. This creates a sense of shared responsibility and strengthens the collective commitment to more sustainable manufacturing practices.
