The business case for sustainability: Takeaways from the sustainable manufacturing expo
Last week, I had the opportunity to attend the Sustainable Manufacturing Expo (SME) in Anaheim, California. The event showcased strategies and opportunities for companies to achieve sustainability while maintaining and even maximizing profitability. Keynotes and presentations from forward-thinking manufacturers, including Siemens, highlighted real-world success stories of integrating sustainability into products, processes and plants.
In this blog, I’ll break down the key enablers, trends and strategies driving cost savings and operational efficiency through sustainable manufacturing that took center stage at the event.
The business value
Traditionally, sustainability has been discussed separately from its economic impact on an organization. However, a recent Gartner Survey revealed that 69% of CEOs views sustainability as a prime driver of business growth. This is because decision makers understand that sustainability means efficiency, and efficiency means profitability. It comes as no surprise that manufacturers who have implemented sustainable strategies are actively experiencing benefits like cost savings from reduced waste and energy efficient machines and plants. And these cost savings can be reinvested into workforce development, innovation and long-term business growth.
The concept of circularity—designing products and processes to minimize waste and maximize reuse—is a key driver of sustainability progress. Companies are now embedding sustainability into product lifecycles, making environmental impact a priority early in the design phase. And other organizations are exploring circular economy hubs to incentivize recycling and reuse at scale.
Another example of circularity in action comes from Siemens’ partnership with top beer producer, Heineken. With Siemens Digital Twin technology, the company developed a way to repurpose excess grains from brewing rather than discarding them, ensuring they get maximum value out of their materials and resources.
Smarter Manufacturing with AI and automation
One of the biggest challenges in scaling sustainability is data—acquiring, analyzing and utilizing it effectively. Speakers noted that access to the right data is often the biggest hurdle. Without accurate information, manufacturers risk spending more than necessary and missing opportunities for optimization.
Artificial intelligence (AI) and digital twin technology are playing a critical role in solving this challenge. Industrial AI helps companies sift through data insights to reveal the data they need to optimize their businesses. This data enables predictive manufacturing, allowing companies to anticipate equipment failures, optimize energy usage and enhance overall performance.
Equipped with invaluable data derived from AI, tools like the comprehensive Digital Twin can give manufacturers the power to simulate and validate sustainable solutions in the digital world before implementing them in the physical world. Not only does this reduce material waste, but it also improves output and enables innovation that may be impossible to achieve without simulation.
Automation and AI are also an essential piece of the circularity equation. AI can drive material tracking, allowing manufacturers to recover and reuse valuable materials from batteries and other componenets, rather than letting them go to waste.
Sustainability making it part of a company’s DNA rather than a separate initiative. Likewise, Siemens’ Rahul Garg emphasized that companies prioritizing sustainability are the ones thriving in today’s challenging market. The shift is clear: profitable companies are sustainable companies.
Partnerships and collaboration
The labor shortage in manufacturing remains a pressing issue, but sustainability is proving to be a factor in attracting the next generation of workers. Young professionals and university students are increasingly drawn to companies that prioritize environmental and social impact. AI and automation are also reshaping job roles, requiring companies to invest in upskilling and reskilling their workforce.
Despite the clear benefits of sustainable manufacturing, adoption remains a challenge due to cultural and operational barriers. Lack of trust and data-sharing between companies slows down progress. However, companies are recognizing that collaboration is essential to overcoming these obstacles.
From industrial AI to circularity initiatives, the message from this year’s expo was clear: sustainability is smart for business. Companies that embrace this shift, invest in technology and prioritize partnerships will be competitive and successful.
Siemens Digital Industries Software helps organizations of all sizes digitally transform using software, hardware and services from the Siemens Xcelerator business platform. Siemens’ software and the comprehensive digital twin enable companies to optimize their design, engineering and manufacturing processes to turn today’s ideas into the sustainable products of the future. From chips to entire systems, from product to process, across all industries. Siemens Digital Industries Software – Accelerating transformation.
