Environmental factors
resources, alternatives, limitations,
recycling/reusing
pollution
government legislation
Sociological factors
issues relating to a business
workplace cultures
the role of a business in the focus industry
identify how the resources and processes used in a business impact on environmental and sociological factors
identify the problems of pollution and any recycling of materials associated with a business
appreciate the impact of government legislation
describe how the business impacts on the focus industry
Environmental and sociological considerations
alternative resources: power, material, processes, limitations
recycling and reusing
waste management and minimisation
pollution
sustainable development
rehabilitation of commercial sites
legislative requirements: local, state, federal
environmental studies
location: land costs and availability, transportation facilities, workforce, impact on surrounding population, resource availability, geographical factors, waste management
describe and evaluate the approaches to the various environmental and sociological factors adopted by the industry studied
recognise and evaluate alternatives to traditional industrial practice especially in relation to power and resource management
discuss and justify the ramifications of legislative requirements on the development and sustainability of the industry
identify and describe how factors relating to location affect the viability and organisation of industry
The majority of businesses in the industry have traditionally used electricity as their source of power from the grid
Some businesses are significant energy users - for example BORG manufacturing at Oberon NSW
It is becoming increasingly wise to source power from alternative sources for reasons of:
Cost
Reputation
Alternative sources could include:
Solar panels on the factory roof - especially due to the large roof area.
Co-generation - small co-generation plants are becoming increasingly available - this is where wastes such as offcuts or scrap materials can be used as fuel to produce steam for power generation. For example, BORG manufacturing has installed co-generation plants at 2 sites in NSW with the one at Oberon saving over $500,000 in power costs in 1 year and 514 tonnes of CO2 emissions abated in one year. Source.
Improvements in battery technology also allow for power that is generated can be used at other times.
Businesses can choose to purchase their power from green generators. This can be more costly but can enhance the "green" credentials of the business and can drive changes in the energy marketplace.
It is becoming increasingly important for businesses in the industry to source appropriate materials for their products. The most obvious material is timber, either in solid form or as manufactured boards. Sourcing sustainable managed and harvested timber is vital for a number of reasons such as:
The long term viability of the business/industry - no raw materials = no industry
Maintain the quality of the product. Australian hardwoods are unique and give Australian businesses a competitive advantage when competing in international markets
Protecting the clean/green/sustainable image of the business and the industry.
Protecting the environment and ensuring that the industry plays a significant role in combating climate change.
As en example, BORG manufacturing ensures that all of its products are produced from managed and renewable pine plantations and are Australian Forestry Standard chain of custody certified (COC). All Borg Manufacturing products are manufactured from E0 or E1 substrates. You can view their environment policy here.
All business should seek to ensure that their processes are as efficient as possible as this ultimately reduces costs, increasing profit or allowing the business to be more competitive.
Efficient processes use less energy/power
Efficient processes use less materials, generate less waste
Mass production technologies can lead to more efficiency in terms of time and power use but can in some cases generate more waste.
New technologies can be the best of both worlds, where items can be produced quickly, using less power but can also be done in such a way as it reduces waste, through error but also through efficient layout. An example is using large manufactured boards with CNC equipment. The computer can automatically find the most efficient layout of parts for each board, cut them without error and automatically move them on to the next stage of the manufacturing process
It is increasingly common practice to recycle and reuse what would otherwise be timber residue into new products and applications. The versatility of timber is no better demonstrated than in the variety of second life products it makes its way into. Particleboard manufacture is increasingly utilising recycled wood packaging and off cuts in the production of new particleboards. Animal bedding, mulch and composts continue to make excellent use of the natural moisture retaining properties of timber and more and more timber salvaged in the demolition of large buildings is finding new life as features in contemporary designer buildings.
The environmental benefits of such reuse are obvious - not only is the service life of the timber extended (and with it the need for a new product eliminated) but in addition, the carbon contained within the recycled timber is stored for the life of the new product. When wood residue from timber processing cannot be recycled it can still be used to produce biomass energy. Biomass energy is a renewable energy, sourced from natural materials like wood, which is then generated into heat or electricity. The National Timber Product Stewardship Group states that the energy produced from the combustion of renewable timber is considered to emit over 50 times less greenhouse emissions than combustion of black coal and over 30 times less than natural gas, when used in industrial facilities.
Wood residue used in energy production provides two fold environmental benefits. Firstly, its use reduces industry reliance on environmentally damaging fossil fuels, in turn preventing the release of long-term carbon store from sources that cannot be replenished. Secondly, the energy itself omits far fewer greenhouse gas emissions than typical alternatives.
For more information on the timber industry's forward approach to recycling and waste reduction, go to The National Timber Product Stewardship Group (NTPSG) www.timberstewardship.org.au. NTPSG is an initiative of the timber and wood products industry, aimed at doubling the recovery of post-consumer timber and wood products.
Choosing timber in design and construction can help tackle climate change in several ways. One of the most important is that wood stores carbon. Growing trees absorb carbon dioxide from the atmosphere, emit oxygen and store carbon. Carbon remains locked in the wood for the life of the piece of timber until it rots, decays or is burnt.
Australia's native forests, timber plantations and wood products are all net absorbers of greenhouse gases. In 2005, they sequestered (or stored) 56.5 million tonnes of carbon dioxide, reducing Australia's overall greenhouse gas emissions by almost 10%. The combination of carbon sequestration in growing trees and the long term carbon storage in wood products represents a significant net sink and store of carbon for Australia.
Embodied energy describes the energy consumed in providing materials for building construction. It includes the extraction and processing of raw materials, along with manufacturing, transport and product delivery processes. Embodied energy is usually sourced from fossil fuels and it can be a significant component of the total life cycle energy consumption of a material. Generally, the more highly processed a material is the higher its embodied energy.
The embodied energy of a building can be lowered by using locally available, natural materials that are both durable and recyclable, with a design that incorporates components that are easy to recover and reuse, within a structure that is easy to dissemble and dismantle.
Timber can create buildings with low embodied energy. It is often locally available and it is natural, durable and recyclable. Its versatility and light weight means it can be designed to be easy to disassemble, recover, reuse and/or recycle.
Recent research by the Cooperative Research Centre for Greenhouse Accounting compared the amount of greenhouse gas emissions generated by the manufacture of timber products, with the amount of emissions generated by other common building materials. The results showed that by substituting timber in the construction of a typical family home, greenhouse gas emissions, equivalent to up to 25 tonnes of carbon dioxide, could be saved.
Sustainable development is the organising principle for meeting human development goals while at the same time sustaining the ability of natural systems to provide the natural resources and ecosystem services upon which the economy and society depend. The desired result is a state of society where living conditions and resource use continue to meet human needs without undermining the integrity and stability of the natural system. Sustainable development can be classified as development that meet the needs of the present without compromising the ability of future generations.
Describe and evaluate alternatives to traditional industrial practice especially in relation to power and resource management
When a business, whether a manufacturing or service industry, is setting up in an area they are required to comply with relevant laws and regulations set down by state and local governments. Typically, regulations cover the zoning of the land, hours of operation, storage of materials, transport limits, noise levels, pollution, waste controls, hazardous materials handling and disposal. Government regulations also cover Work Health and Safety (WHS) requirements.
Not only do industries have regulations that govern initial set up of a business, but laws are in place to ensure that the day to day operations comply with pollution, emission and waste controls. For example;
If you visit the following website you will see that the NSW government has a department devoted to the Environment, Climate Change and Water and that there are several government agencies set up to control a range of environmental concerns.”
Some of these agencies are:
Department of Energy, Utilities and Sustainability
http://www.deus.nsw.gov.au/ has responsibility for the safety and performance of energy networks, water and energy policy and promotes affordable, safe, reliable and sustainable water and energy for NSW.
Department of Environment, Climate Change and Water
http://www.dec.nsw.gov.au/index.htm was established in September 2003 to bring the Environment Protection Authority (EPA), National Parks and Wildlife Service, Resource NSW and Botanic Gardens Trust together into a single Department.
Department of Infrastructure, Planning and Natural Resources
http://www.dipnr.nsw.gov.au/ "drives, co-ordinates and streamlines land-use, transport planning, infrastructure development and natural resource management in NSW." It incorporates the previous departments of Land and Water Conservation and Planning NSW.
Department of Lands
http://www.lands.nsw.gov.au/ is responsible for the management of Crown lands; titling, valuation and surveying of land; Native Title; Aboriginal land claims; soil services including conservation and testing; Land Boards and Emergency Information Co-ordination Unit.
Department of Local Government
http://www.dlg.nsw.gov.au/dlg/dlghome/dlg_index.asp is a central website from which information and links are available for all Local Councils in NSW.
Department of State and Regional Development
http://www.business.nsw.gov.au/ "provides information, advice and assistance to foster business growth, industry and innovation in Sydney and NSW.
Environmental Issues
http://www.environment.nsw.gov.au/environmentalissues.htm monitors and enforces policies to reduce pollution, waste and emissions in NSW homes and industries and is now incorporated into the Department of Environment and Conservation.
Waste Avoidance and Resource recovery
http://www.environment.nsw.gov.au/warr/index.htm/index-RNSW.htm who"s role is "to develop, co-ordinate and evaluate strategies and programs for resource conservation and waste reduction".
Often, if a business in the Industry wishes to commence operations, expand operations or relocate operations, it will need to conduct an Environmental Impact Assessment (EIA). An Environmental Impact Assessment (EIA) is the process of identifying, predicting, evaluating and mitigating the environmental, social, economic and other relevant effects of development proposals, this is usually carried out via an Environmental Impact Study (EIS). They take into consideration the location of the business, the activities the business performs and how the business will affect its surrounds. Put another way, an EIS is a study undertaken in order to assess the effect on a specific environment of the introduction of any new factor which may upset the ecological balance. EIS are administered at the state level by the Department of Planning but an EIS must take into account legispative requirements from all three levels of government.
Contents
Introduction – containing background information and a basic outline of the EIS.
Statutory Planning – containing legislative requirements and influences
Current Situation
Alternatives
The Proposal
Ecologically Sustainable Development – principles behind it, what it means
Economic Evaluation
Cultural Heritage – containing sub-headings such as: Current Situation; Proposed Situation; Compliance with Relevant Plans; Potential Impacts; Mitigative Measures; Conclusion. The following 14 points use similar sub-headings as these.
Aboriginal
Flora and Fauna
Marine Environment
Fire Management
Soil Management
Visitor Health
Visual Impacts
Stormwater
Water Supply and Sewerage
Noise
Light
Traffic and Transport
Social Impacts
Land Use and Cumulative Impacts
Heritage and Environmental Management Plans
Justification
Summary
Discuss and justify the ramifications of legislative requirements on the development and sustainability of the industry
There are a wide range of legislative requirements on the Timber Products and Furniture industry in Australia, many of which have impacts upon the development and sustainability of the industry over the longer term. In Australia, legislative requirements can exist at the local, state and federal level. It can be argued that these have both positive and negative impacts but overall, the role of legislation has had a beneficial impact, particularly when viewed from the perspective of long term development and sustainability of the industry in Australia.
These laws affect how a business within the TP&F industry operates and interacts with other businesses, the government and the public. They may relate to specific areas such as Work Health & Safety, environmental issues and the use of Environmental Impact Statements, the use of materials as described in Material Safety Data Sheets, employment conditions through Australian Workplace Agreements and other areas.
The unique qualities of Australian timber species provide a natural advantage to the Australian timber products and furniture industry, although in our early history much of this timber such as Australian Cedar, was harvested in an unsustainable manner. Legislation, such as the Forestry Act (1916) sought to protect our forests from further unmanaged clearing and exploitation to ensure long-term sustainable management of the State's timber reserve. This limits access to timber for companies to use as raw material leading to an increase in cost. However, there are a range of benefits, such as ensuring an ongoing supply of raw materials and the establishment of the Forestry Corporation that actively manages our forests, plans and manages plantation forests such as Radiata Pine and other species, thus enabling access to locally produced timber that can be certified as sourced from sustainably managed forests.
Environmental Impact Statements (EIS) are important as they ensure businesses take into account a wide range of factors before they commence, expand or relocate operations. For example, in addition to considering stormwater or waste removal issues, a business also has to consider cultural and environmental impacts, visual impacts, noise, pollution, loss of habitat etc. EIS are quite complex and can place considerable costs and constraints on businesses but they do force a detailed and considered approach to planning and location factors which in the longer term ensure a more sustainable approach to both the business but also to the society and environment within which it operates.
Legislation, such as the Work Health and Safety Act (2011) has an impact upon a wide range of work practices in the industry such as managing the risk of plant, managing the risk of hearing loss, first aid etc. This can be argued that it can increase costs of production as the health and safety of workers must be taken into consideration however, the act is balanced as it places areas of responsibility on both the employees and employers in a business. By making the workplace safer, it can make businesses more sustainable in the longer term by reducing down time due to accidents, costs of litigation and damage to the reputation of businesses and the industry as a whole.
Industrial relations represents a class of legislation that operates at both the state and federal level. It includes workplace agreements and industrial awards that determine general pay and working conditions as well as equal employment legislation and anti discrimination legislation. Australia enjoys world class protections to pay and conditions through a range of industrial relations legislation. Some argue that this makes Australia expensive and uncompetitive but the ongoing viability of the industry in Australia suggests otherwise. This legislation supports the sustainability of the industry by providing quality working conditions that encourage workers to be productive, commit to additional training and strive to produce high quality products. Additionally, this stability encourages owners to invest in new technology such as computer aided manufacturing systems which allows many Australian businesses to be competitive in global markets.
Whilst it can be seen that a wide range of legislation has significant impacts upon the operation of the timber products and furniture industry in Australia, the overall impact is that it benefits both the industry through stable and sustainable resource management, work practices and worker protection and by protecting the environment and the society within which it operates and upon which it depends.
Identify and describe how factors relating to location affect the viability and organisation of industry
Land costs are a significant factor relating to the location of a business. Even if a business is in rented premises, the value of the land is usually expressed through higher or lower rents. Better located land that is closer to transportation, workforce and other desirable features is more valuable and expensive. Most businesses when considering a site to either buy or rent will also need to consider not only what the site offers now but if it offers opportunities for expansion and development in the future
Businesses, particularly those in the timber products and furniture industry need to consider the proximity to transportation facilities. A good example of how this works in practice is the bulky goods warehouses located around the intersection of the M4 and M7 is Sydney's west. Because of the close access to both of these major transportation links, many businesses that involve warehousing and distribution have chosen this location. One drawback of this location is that it is not well served by public transport, so workers generally drive to work although they too have relatively easy access as their place of work is located close to major expressways. Therefore businesses need to consider:
Transport proximity to suppliers and market
Access to efficient rail and/or road network
Businesses need to consider proximity to available workforce.
Are there sufficient people living nearby who could be potential employees?
Does the business require people with particular skills? Do these people live nearby?
If not, what policies or programs could the business put in place to attract potential employees to move to the area?
Business can approach this in two ways - in the short term they can offer incentives for appropriately skilled people to move to the area or
in the longer term, can encourage and fund local institutions such as TAFE to offer courses where the appropriate skills can be developed.
Additionally, business need to consider what conditions and facilities are to be provided to encourage a stable and productive workforce
Safe and well maintained workplaces
Parking facilities
Tea room/lunch room
Reasonable and legal work conditions with appropriate remuneration
Businesses need to consider impact upon surrounding poulation such as:
Increased traffic, especially at the beginning and end of shift/working day
Impact on surrounding community facilities such as sporting fields, parks, libraries, shopping centres, schools
The business may also introduce environmental impacts such as increased noise, dust or other forms of pollution
In most cases, businesses are required to submit a Development Application (DA) through the local council to be given approval to set up in a particular location and it is through the DA process that council will force the business to consider impacts and in some cases, charge the business a fee that goes towards community facilities such as sporting fields, libraries etc
Businesses can aim to have positive impacts on the local community such as:
Sponsorship of local community groups such as sporting clubs or teams
Offering training and employment opportunities through local schools
Businesses will often need to take into account the availability of resources. For example, a large plywood manufacturing factory will usually be found located close to large areas of plantation timbers. Coal fired power stations are located close to coal mines etc. These factors may be less critical for furniture manufacturing businesses but they are going to need to be relatively close to a reliable supply of raw materials, close to a suitable workforce, have access to services such as electricity, water and waste removal.
Climate can be an important factor, particularly in the furniture industry. Humidity and heat can cause problems with timber swelling and can make working in a factory less desirable for workers. It can also introduce additional costs such as the need for air conditioning. The physical geography of a factory site can also be a factor, steeper sites can be difficult and costly to build on and can be challenging for delivery access etc.
Businesses in the timber products and furniture industry need to consider waste management. Waste can include:
Solid wastes such as offcuts, sawdust, much of which can be recycled or reused in various ways.
Liquid waste can also be generated as a byproduct of cleaning, cooling or other processes. A business needs to have access to services that can properly remove or treat liquid waste. In most cases the business will need to install storage facilities for any liquid waste that cannot be legally disposed in the sewerage system
Other wastes such as fumes or dust. Most businesses will need to install filtration systems for fumes, particularly from spray finishes or from the use of dangerous adhesives such as formaldehydes or epoxies.