Innovation

The innovation that Covert Manufacturing practices was the adoption of the ISO 14001, specifically a change from 100% oil-based paints to an environmentally friendly water-based paint. The ISO 14001 is not a requirement for manufacturing organizations. But there are may benefits from adopting and following the requirements of the ISO 14001. Some of the requirements within the ISO 14001 involve a more efficient use and consumption of water. After doing some studies it was found that the oil-based paint was both harmful to the employees as well as the environment. Not wanting to be known for being associated with such a hazardous material Covert Manufacturing found it most beneficial to change over its practices and entirely adopt the ISO 14001 and all its requirements. Although some of the ISO 14001 was developed in 1996, Covert Manufacturing did not adopt the practices until 2014. Since Covert is a manufacturing organization, they were still considered on the forefront of adopting these standards.

“The ISO 14001 is an internationally agreed standard that sets out the requirements for an environmental management system. It helps organizations improve their environmental performance through more efficient use of resources and reduction of waste, gaining a competitive advantage and the trust of stakeholders.” Through the adoption of these standards it can be assumed that there is a direct correlation between the benefits and two SDGs, “Industry, Innovation, and Infrastructure” as well as “Climate Change”. With a reduction of waste there should be an increase in environmental care, resulting in a direct reduction of carbon emission levels as well as climate change. The original oil-based paint that Covert Manufacturing used contained various resins, solvents, and pigments that were harmful to the environment when released. The adoption of a water-based paint helped the manufacturing organization and those involved with it become more innovative and efficient.

Inspiration

The manufacturing industry is not an industry that is well known for its passion involving sustainability and environmentally friendly activities. Covert Manufacturing wanted to change this stigma. Donald Covert was quoted saying; “We used to use 100% oil-based paints but it’s hard on the environment, so we worked with Sherwin Williams to create a water based acceptable version of the old paint, we changed the paint because of the ISO 14001 we implemented to be environmentally friendly.” Covert Manufacturing believes that they have the opportunity to play a crucial role in the adoption of more sustainable practices for all manufacturing businesses in the industry.

Adopting a more sustainable business model creates a number of advantages for Covert Manufacturing. Customers, stakeholders, employees and more all are directly impacted by the adoption of sustainable practices. Employees are more heavily involved and engaged in the company’s practices. Covert Manufacturing’s reputation with its stakeholders is increased because it becomes obvious that Covert Manufacturing complies with current and future statutory and regulatory requirements. Donald Covert and Covert Manufacturing hoped that the adoption of these practices would have an everlasting effect on the practices of their suppliers and customers as well. Lastly the adoption of sustainable activities provides a competitive and financial advantage through the improved efficiencies and reduced costs. There are a number of viable reasons for Covert Manufacturing’s inspiration to adopt this more sustainable business model.

Overall impact

The overall impact of the innovation increases in the business itself. It affects the Covert Manufacturing and where the company does work with their suppliers and customers. It demonstrates compliance with current and future statutory and regulatory requirements. Since they all implemented the stakeholders, they will all understand they are following the ISO 14001. A short term effect could be, if they kept with the old oil based paint it could cause a lot of harm to not only to the workers but also to the customers involved in the business.

Manufacturing itself has not been known to be environmentally friendly but by adopting the ISO 14001 changed the outlook. When the Covert Manufacturing switched over to the ISO 14001, it not only improved the company's reputation but it also impacted the confidence of its stakeholders through strategic communication. Adopting the ISO 14001 was an extravagant move because not only does it affect Covert Manufacturing and it employees but it affects all the suppliers in the long term also. When they met with Sherwin Williams they had to create a water based paint, the up front cost was higher because of the innovation but in the long term it was more cost efficient and beneficial.

Business benefit

This innovation positively affects the business in a large variety of ways. When Covert Manufacturing was working with Sherwin Williams to create a water-soluble paint, they were forced to take a temporary loss in profits. The development of a product takes time and resources that would not have been used otherwise. This was seen as in investment that would have immediate and long-term payoffs. The immediate benefits revolved around the reduction of toxins in the air, reducing carbon emissions and other harmful actions as well as creating a healthier and more sustainable working environment for their employees. The new water-soluble paint did not share any of the harmful chemicals that the previous 100% oil-based paint did. With this investment Covert Manufacturing was able to qualify themselves as a follower and practice of the ISO 14001 standards.

With the adoption of the ISO 14001 standards there are great benefits that can be reaped by Covert Manufacturing. Through the adoption of these standards Covert Manufacturing is already at a competitive advantage over all of their competition that does not meet these same standards. Customers are more likely to work with organizations that meet the environmental requirements set forth by the ISO 14001. This is not always up to the customers discretion either, some organizations are required to only work with organizations that meet specific environmentally sustainable practices. Another area where Covert benefited greatly from was a larger variety of suppliers to choose from. Finding a suitable supplier is always difficult for organizations but it becomes much easier when both organizations meet the same requirements put forth by the ISO 14001. Organizations are more likely to want to work with one another if they share these standards. This causes an increase in positive reputation.

Social and environmental benefit

Many of their manufactured parts and their machines were originally coated with oil-based paint. Unlike the water-based paint they currently use, oil-based paint contain various resins, solvents, pigments, and additives that contain petroleum distillates and pigments that can be harmful for the environment. In addition to the environmental impact, oil-based paints can also affect the health of the workers involved in the manufacturing process as the vapors can irritate the eyes, skin, and lungs as well as possibly causing nausea and headaches.

The switch to water-based paints not only is better for the environment, due to the absence of petroleum by-products, but can be much safer for workers. Recent improvements have also increased the durability and protection. While oil-based paint may offer more protection, if it dries out or chips and is not disposed of properly, the paint can be introduced to the environment. The switch to water-based paint also reduces the impact on the environment since extra paint can be recycled and doesn't contain volatile organic compounds that are released when oil-based paint dries. By partnering with Sherwin Williams to develop the more environmentally friendly water-based paint, Covert Manufacturing not only helped reduce their impact on the environment, by also help to improve the future health of their employees.

Interview

Donald Covert Jr., Owner