Metal fabrication is vital for economic growth and supports projects like renewable energy. But it’s also energy-intensive and has a large environmental footprint. The global metal fabrication market is projected to grow from USD 22.95 billion in 2024 to USD 33.15 billion by 2032, with a compound annual growth rate (CAGR) of 4.70% during the forecast period.
As the push for decarbonization intensifies, lowering emissions and adopting sustainable practices will help metal fabricators in the new year. Companies that move now can meet new regulations by aligning with environmental, social, and governance (ESG) standards. Here are four ways Virginia metal fabricators can gain a competitive edge on sustainability.
In Brief
- Use clean technologies like electric arc furnaces and green hydrogen.
- Increase the use of recycled materials.
- Embrace digital tech for efficiency.
- Improve ESG performance for long-term gains.
Quick Market Facts
- The U.S. fabricated metal product manufacturing subsector employs around 1.5 million workers.
- Key processes in metal fabrication include forging, stamping, bending, forming, machining, welding, and assembly.
- Metal fabrication can be environmentally friendly. For example, a frame for a 2000-square-foot house can be built using recycled steel from just four cars, saving trees.
- Welding, a typical metal fabrication process, dates back to around 3,500 B.C.
1. Adopt Clean Technologies for Sustainable Production
One of the most direct ways to improve the sustainability of metal fabrication is by adopting clean technologies that lower carbon emissions. Over the years, the Virginia steel industry has made strides with technologies like electric arc furnaces (EAF) and carbon capture methods, which lower emissions compared to traditional blast furnaces.
Electric Arc Furnace (EAF)
Using recycled scrap steel instead of virgin ore, EAFs lessen energy consumption and emissions.
Carbon Capture and Storage (CCS)
Innovations like carbon capture can trap CO2 emissions from industrial processes, store them underground, or reuse them for other purposes.
Green Hydrogen
Hydrogen, especially green hydrogen produced from renewable energy, is another promising alternative. When used in steel production, it generates water vapor instead of CO2.
2. Use More Recycled Materials
Recycling is one of the most sustainable practices in metal fabrication. Using recycled steel is more environmentally friendly and lowers the demand for raw materials, which helps cut down on mining activities and the associated carbon emissions.
The International Renewable Energy Agency (IREA) states that shifting to scrap-based steel can lower energy consumption by up to 60% compared to producing steel from raw iron ore. Using more scrap-based steel and metal materials helps close the loop in the machining manufacturing process, creating a circular economy.
3. Embrace Digitization and Smart Manufacturing
Digital technologies are transforming the sector by making machining manufacturing processes more sustainable. They help improve energy efficiency and lower waste and environmental impact. For example:
- Sensors and AI can optimize energy use, so machines only consume what’s needed.
- Predictive maintenance tools can also foresee equipment issues.
- Blockchain and other technologies offer supply chain transparency, allowing companies to track material sourcing, verify their carbon footprint, and make sustainable adjustments.
- Energy management in manufacturing, like energy audits, automated systems, and renewable energy, ensures that consumption is carefully monitored and optimized.
- Lean manufacturing principles focus on eliminating waste and improving efficiency, contributing to overall sustainability efforts.
Pro Tip: Leverage a lean manufacturing consultant like GENEDGE to stay ahead of modern efficiency practices.
4. Improve ESG Performance for Long-Term Gains
Environmental, Social, and Governance (ESG) factors are important in evaluating machining manufacturing companies’ sustainability. Investors, regulators, and consumers are demanding more transparency and action on environmental responsibility.
For instance, adopting internal carbon pricing allows companies to measure their environmental impact and identify areas for improvement, leading to more sustainable investment decisions. Similarly, strong ESG performance relies on sustainable manufacturing practices, such as fair labor standards, responsible sourcing, and minimizing production’s environmental footprint.
The Future of Green Metal Fabrication
Metal fabrication sustainability will be widespread across Virginia but not uniform. As the push for going green grows stronger, companies across the state are adopting eco-friendly practices to lower their environmental footprint. This shift won’t happen overnight, and it will vary by region, but the momentum is undeniable.
In places like Appomattox, Norfolk, and Hampton, metal fabrication companies are leading the way with innovative sustainability initiatives. For example, one of GENEDGE’s clients, Virginia MetalFab in Appomattox, recently moved to a larger facility and doubled its sales between 2021 and 2022, implementing advanced technologies like lasers and punches. With the guidance of manufacturing management consulting, they successfully managed their growth and transformation.
To achieve these goals, metal fabricators in Virginia will need a clear, staged plan that leverages new technologies and achieves economies of scale. This transformation isn’t just about individual companies; it requires collaboration with governments, academic institutions, communities, and industry associations to create a greener metal fabrication industry.
Metal is inherently sustainable—it’s durable, endlessly reusable, and one of the most recycled materials in the world. Investing in greener production processes now will bring substantial environmental benefits, ensuring that metal fabrication continues to support economic growth while protecting the planet.
