The recent White House announcement calling for a monumental increase in the use of renewable energy over the next decade will have plenty of direct and obvious implications for manufacturing employers – but it’s the indirect implications that might catch you by surprise. What are the three biggest indirect consequences of this movement that your workplace will need to address in the near future if you want to stay on top of your game?
Employers in the manufacturing world constantly need to monitor industry trends and world events to maintain their competitive advantage – and recent events have demonstrated that disruptions to your workplace can come from any source. In April, less than three months after rejoining the Paris Agreement, the Biden administration proclaimed a new target to reduce U.S. greenhouse gas (GHG) emissions by 50-52% below 2005 levels by 2030. While most U.S. manufacturers are already transitioning to lower carbon-based products and processes, the new GHG targets will require nearly all manufacturing operations to expedite the rate of change. Manufacturing employers will need to start analyzing these new targets for both direct and indirect impacts on their operations.
Direct Impacts on Manufacturing Operations
The change from fossil fuel-based operations to renewable energy sources will undoubtedly have direct impacts on certain products and processes. For example, if your company manufactures components for internal combustion-based lawn mowers, it is likely you’ll see the demand for your products drop as consumers switch to electric mowers. Your firm will need to develop a new business model to meet changing demands.
These direct impacts are quite visible, and you have probably already begun to adapt your business model to address the obvious changes. But what if one of your company’s products is portable gas cans for lawn mowers? The demand for this product will also likely drop also requiring a change in manufacturing operations. It’s these kinds of next-level indirect ramifications that you need to consider when you forecast what your business will look like in the near future – and adapt to them accordingly.
3 Critical Questions to Ask Yourself
The following are three of the most critical workforce considerations for manufacturing employers to take into account as the economy switches to renewable energies in order to meet the White House’s GHG targets.
These are just a few of the most important employment considerations facing manufacturing employers as the economy switches from fossil fuels to renewable energy, but there will be numerous other employment challenges resulting from reducing emissions throughout the economy. You should start planning now to be in the best position possible to compete successfully in the new green economy.