The environmental imperative for local manufacture

ASL are proud of their success in improving the environmental effects of our business. Drawing on extensive experience within our parent company Circuitwise Group we will continue in sustainable, quality-led manufacturing.

The article below, originally published on Circuitwise’s website, explores the environmental case for local manufacturing and why sustainability is increasingly shaping supply chain decisions.

We’re sharing this article to highlight environmental considerations that are becoming critical for New Zealand products and companies operating in global markets.

• Reduced shipping emissions: Producing goods locally reduces the need for long-distance transportation for products sold or assembled in Australia, thereby decreasing greenhouse gas emissions. While components still need to be shipped to Australia and NZ, as we generally don’t manufacture such items here, these are largely shipped in bulk, translating to environmental efficiencies.
• Reduced travel emissions: Managing foreign suppliers requires at least a few visits to get your production quality up to speed. Typically, you will conduct on-site inspections for initial assessment, contract negotiations, and expectations setting. If your product’s value proposition is based on high reliability, you may need to visit the manufacturing site frequently for audits, product development collaboration and troubleshooting. Periodic follow-up visits are advisable to maintain a good working relationship and communication. Keeping your travel local within your city or country dramatically reduces emissions from air travel.
• Energy-efficient equipment: At Circuitwise, we install the most advanced manufacturing technologies possible to remain competitive with foreign manufacturers. The latest technology is also the most energy-efficient, as equipment suppliers are constantly under supply chain pressures to improve their technology’s environmental footprint. Low-cost Asian manufacturers, on the other hand, are incentivised to minimise their capital expenditure to maintain their low-margin profits. These practices minimise energy consumption and reduce the overall environmental footprint of production activities.
• Environmentally friendly components: Some substances are so environmentally toxic that they have been banned in some jurisdictions, such as the European Union’s Restriction of Hazardous Substances (RoHS) Directive. In addition, some of the minerals used in semiconductors are so rare that they have driven the development of hazardous mining practices in countries with poor or no regulation, as in some African countries. These so-called “conflict minerals” include Tantalum, Tin, Tungstun and Gold. Circuitwise audits its component suppliers to ensure they comply with RoHS rules. By contrast, in Asia, substituting counterfeit parts for the original RoHS-compliant component is common, especially among the cheapest manufacturers. For assurance of original componentry and environmental compliance, Australian or NZ-made is a must.
• Responsible management of e-waste: Australian and NZ companies are strictly bound by local regulations to responsibly manage e-waste. In addition, the European Directive on Waste Electrical and Electronic Equipment (WEEE) and the REACH Regulation on chemical waste disposal and recycling demand companies marketing products in the European Union ensure their manufacturers follow stringent environmental guidelines. Circuitwise’s quality management system is set up to ensure compliance with these. It’s hard to be sure how strictly Asian suppliers follow these directives, even if they say they are. By contrast, Circuitwise aims to minimise the production of any waste at all by targeting the highest possible yield.

If you're considering offshore manufacturing versus local manufacturing, we are here to assist and help you understand and evaluate the commercial, operational, and environmental trade-offs so you can make the right decision for your business.

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If you’re looking for a partner who will work with you through the manufacturing process to get the best result for your product and company, get in touch.