Nick Shields: Future's bright for those who grasp low-carbon opportunity

This includes Japanese giant Mitsubishi's decision to establish a new renewables research and development facility in Edinburgh and similar investments by Spanish energy company Gamesa in Glasgow and Doosan Power Systems in Renfrewshire. These endorsements are giving Scotland impressive credentials to show off on the world stage. But the growth of our renewables sector is just one side of the story. If we truly want to be able to describe Scotland as having a low-carbon economy, then we need to help all companies from all sectors respond to this agenda. And manufacturing is no exception. The manufacturing sector has faced considerable challenges in recent years and, although the sector fared better in Scotland than the rest of the UK during the recession, output still dropped by about 11 per cent. The transition to a low-carbon economy, however, offers manufacturers an opportunity to reverse this trend. Through my time with Scottish Enterprise and the Scottish Manufacturing Advisory Service (Smas), I've worked with a whole range of manufacturing companies. When I've asked them about their low-carbon agenda, many think I'm talking about a recycling policy or reducing their energy consumption. While that may be a good starting point, I always argue that companies that stop there are missing an opportunity to make their business more efficient, more profitable and more productive. And with sustainable development now being a top priority for businesses at the top of supply chains, the businesses that contribute components and services to them are having to catch up. Manufacturers need to embed sustainable practices and lean management techniques across their entire operation, from strategy and design to production and marketing. Some argue it's too costly and too time consuming. But these companies are failing to see that the savings they'll generate by becoming more efficient will outweigh the costs. The results we announced this week show what can be achieved. Last year, our advisers worked intensively with more than 200 manufacturers in Scotland, looking at their processes and identifying ways to make them more efficient. As a result of these projects, more than 20 million of productivity gains were identified for these companies. Over the past year, we've also seen a 30 per cent increase in the number of inquiries to Smas and carried out 56 per cent more projects with manufacturers, as companies begin to recognise the benefits of adopting more efficient practices. Adopting a low-carbon mindset is not just about increasing efficiency. It can also open up new opportunities, new markets and new supply chains. The UK market for low carbon and sustainable goods is expected to be worth 12 billion. And, as environmental issues become ever more important, a company that can demonstrate its "green credentials" will have a significant advantage over its competition. The key to capitalising on this potential is innovation, whether it's the design of new products using more sustainable materials or modifying existing products to make them environmentally friendly. The growth of Scotland's offshore wind sector clearly offers huge potential for Scotland's manufacturers, particularly those that have built up expertise in the shipbuilding, aerospace and oil and gas sectors. These skills can be easily transferred to target new opportunities in renewables. Manufacturers such as Mainetti and Albert Bartlett are reaping the benefits of adopting a low-carbon approach for their business. Over the next year, this is going to be an even bigger priority for both Scottish Enterprise and Smas as we look at ways to help manufacturers grow their business, whether that's increasing business efficiency, investing in innovation or targeting new markets. The opportunities are there for Scottish manufacturing - we just need to seize them. • Nick Shields is the newly-appointed director of the Scottish Manufacturing Advisory Service