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Recession leaves legacy of resource efficiency as West Midlands businesses undergo major 'thrift shift' as reported by Envirowise

The recession could leave a legacy of improved resource efficiency in the West Midlands as businesses adopt an increasingly 'thrifty' mindset - that's according to a new report published today by sustainability experts Envirowise. 

The Envirowise Business Thrift Shift Report, which encompasses responses from more than 500 UK companies reveals that almost three-quarters (74%) of respondents in the West Midlands 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. 

Reduction of spend on raw materials and consumables was one of the biggest areas of cut back for the region's companies, with a large number also minimising their water, energy and transport use. And this 'thrift shift' is set to continue, with 88% of respondents expecting to be more careful about how they use their resources once recovery comes.

Responding to the report, Nora Asselah - Environmental Co-ordinator at Birmingham-based Truflo Marine - said: "The recession has made us more aware of the need to make small efficiency improvements in all business activities. For example, we decided to carry out some environmental changes mainly on our heating system. It may seem contradictory to make an investment during a tight period, but the new system should offer us a 30% reduction on our gas consumption in the first year alone, which means payback in less than two years. The installation of an automatic delivery door operated by sensors and the use of half hourly electricity metering will further help us conserve heat and reduce energy use."

Tim Robins, Envirowise Regional Manager for the West Midlands said: "Businesses in the West Midlands have 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 (37%). 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 region. 

"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."

Another local business which has doubled its environmental efforts during this recession is Malthouse Engineering based in Oldbury. Health, Safety and Environment Officer, John Jackson, said: "The recession has made us all look at the cost of running a business and 'overheads' play a big part in this cost.  We looked at the volume and cost of water used on site as it is the one resource you pay for twice; once when you turn on the tap and again for its disposal. Our solution was to build a rainwater harvesting plant on the roof, which we have recently increased from a 4,000 litre capacity to 11,000 litres. As we emerge from recession and more business comes in we will use more water, but our savings will also continue to increase. We've got into a groove now so everything we are doing will perpetuate and the savings should continue to grow.

Nationally, almost three-quarters of the 500 businesses surveyed (73%) had developed a more detailed knowledge of their spending and resource use as a result of the recession.

 

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Article published by Midlands Business News on 8 December, 2009

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Articles submitted by Envirowise:



  • West Midlands contractors can build a greener reputation with help from Envirowise - click to read
  • Nottingham companies invited to access free ‘low carbon’ advice online - click to read
  • Recession leaves legacy of resource efficiency as West Midlands businesses undergo major 'thrift shift' as reported by Envirowise - click to read
  • West Midlands companies can reduce costs and maximise profits with help from webinar - click to read
  • Manufacturers Could Save Thousands By Rethinking Waste - click to read
  • Last chance for Midlands businesses to join stream of sign ups to water saving initiative - click to read
  • Engaging staff is key to cutting costs for West Midlands businesses says Envirowise - click to read
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