Princetel

Planting Sustainability in All Aspects of Manufacturing

Authors

Mohamed Shata

Mohamed Shata

Himanshi Chawda

Himanshi Chawda

Matt Lee

Matt Lee

Juliana Urbis

Juliana Urbis

rohit raikhy

rohit raikhy

School

Rutgers Business School

Rutgers Business School

Professor

Jeana Wirtenberg

Jeana Wirtenberg

Global Goals

7. Affordable and Clean Energy 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 12. Responsible Consumption and Production

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Summary

Princetel not only fits into the AIM2Flourish guidelines through a single innovation, but through its dedication to operating as a sustainable company in all aspects of its business. Princetel is a fine example of how companies should operate. CEO Barry Zhang operates differently than other CEOs. As Princetel’s IT Manager Michael O’Boyle explained, Zhang rarely directs conversations that focus on profit. Rather, he focuses on how the company can operate more efficiently, effectively, sustainably, and how it can leave a positive impact.

Innovation

The main concerns that Princetel tackles regarding the 17 Sustainable Development Goals are affordable and clean energy (goal 7); industry, innovation, and infrastructure (goal 9); and responsible consumption and production (goal 12). The company accomplishes these by using solar panels to convert sunlight into energy; having a tank that collects rainwater for reuse; and using recyclable material and air pressure for their packaging to minimize waste. Starting with the basics of the building and grounds, Princetel is New Jersey’s first and only industrial building with a LEED (Leadership in Energy and Environmental Design) Platinum rating. The land that the facility was built on was historically a brownfield which was redeveloped to exceed current standards to foster a positive business environment. Despite the opportunity to run the organization on pre-existing land that did not require the sanitation of a brownfield, Princetel chose to act in a sustainable manner. They started by laying the foundation for future sustainable practices in terms of production and day to day operation of the business. The building is built with 71% of recycled materials, including the flooring and roofing. The building is also equipped with many devices that harbor natural resources such as the 10,000 gallon rain harvesting system which reduces potable water usage by 66%. In addition, the use of solar electricity production reduces costs by 54%.

Not only are the physical elements such as the building and grounds sustainable, but also their culture and involvement in their communities are admirable. Zhang's ideals for the work environment promote happiness and well-being. Princetel’s headquarters do not look like a traditional factory setting. There are vibrant color schemes that create an ambiance of comfort. The desk setups are not sectioned by function, rather they are chosen by the employees' preferences. There is no shortage of light, as 98% of the work areas have access to outside views and natural lighting. There is 100% fresh air distribution to all areas across the facility. The staff is extremely diverse, with the employees coming from all walks of life and different parts of the world. There is strong cohesion between the workforce with friendly ping-pong games and Friday potlucks. Zhang emphasizes involvement in the community. He is a member of the board at Grounds for Sculpture and Trenton Artworks where he volunteers his time and sponsors the Trenton Art All Night event. He also invites gifted STEM students from Trenton to explore the facility and encourages them to pursue careers in STEM.

Planting Sustainability in All Aspects of Manufacturing

Inspiration

Zhang's motivation to be sustainable stems from his desire to be responsible towards the environment. But his main source of inspiration was his grandfather and his home village in China. As a young child, Zhang often spent his summers at the village of his grandfather who was a well-respected and well-liked man. Zhang recalls how his favorite activity was to go to a little creek located inside the village and catch all sorts of sea creatures, such as fish, crab, and shrimp. When he was of college age, he decided to return to his home village once more. His first impression was that much had changed, from the people to the environment. Zheng noticed that his favorite creek was gone. According to one of the villagers, the creek had dried up, so they filled it instead. “I was really heartbroken because that was my playground,” Zhang recalled. It was in that moment that he recognized that the reason why the creek disappeared had a lot to with how people treat the land and their surroundings. From then on, Zhang became more aware of his surroundings. He began to question why humans can’t live the way animals live their life. Animals are able to be sustainable in the sense that if there are no outside influences manipulating their environment, they are able to maintain their surroundings forever. However, he notes that while humans are very innovative and progressive, they sometimes don’t consider the consequences of how their actions impact the environment in the future. He calls this environmental issue the biggest social ill. While the environment seems threatened, Zhang believes there are many environmental aspects that can be corrected and he is motivated to do this. As a result, he practices sustainability in his business and wherever he can, going so far as to offer bonuses to people who bike to work, because he still believes that the environment can be saved. Despite other societal ills, Zhang believes that once the environment "gets to a certain point, you reach the point of no return. You cannot recover," he said. "Then you lose it forever.”

Overall impact

Sustainability comes naturally to Princetel and it is imperative to their core operations as a business. Day in and day out, Zhang personally oversees his committed team of employees to make sure these standards are met. Having clean operations shows in the development of their fiber optic rotary joints. These efforts have led to the Princetel Building becoming certified with a LEED Platinum rating. LEED is a national certification system developed by the United States Green Building Council (USGBC) to encourage the construction of energy and resource-efficient buildings that are healthy to live in. This milestone for Princetel only strengthened their path towards green sustainability.

In the short term, their manufacturing processes have allowed them to minimize their waste, leading to greater cost efficiencies and improving many of the environmental aspects of their organization. One example is their utilization of air packaging instead of foam packaging which eliminates a lot of unneeded waste in their organization. There is also a high level of insulation in the building which saves money and costs toward climate control within their work environment. This has a positive effect on the environment and reduces the amount of energy used. In fact, they produce more energy than they use.

In the long-term, this has had a positive effect on the work environment and the work/life balance at Princetel. Over the span of 10 years, their employee turnover rate is only 2%. Many of their energy saving implementations, such as their solar panels, have saved thousands of dollars which helps the company and the planet. In addition, many of the employees at Princetel also benefit from their high usage of recyclable rainwater.

Business benefit

Due to its efforts, Princetel has managed to cut their energy costs by 54%, and this is only for one building. Zhang wonders what the future would look like if everyone was committed to Princetel's sustainability goals. Their use of solar panels has allowed them to generate more energy than they consume overall. Princetel then gets credit for any left over energy that they place back into the grid. This shows that sustainability is not only good for the environment, but the bottom line. Indeed, Zhang noted that “Princetel has been able to save around $40-50,000 a year." These savings, over the course of around 15 years, have accumulated into a substantial sum. Zhang was also excited about their 10,000 gallon rain water harvesting system. Princetel had installed two 5,000 gallon water tanks in their building. This has reduced their potable water usage by 66%.

These accomplishments towards their goal of sustainability have exceeded their expectations. “The company has been growing by 25% each year since 2005,” Zhang said. He is proud that “Seventy one percent of the materials used in the construction of the building are recyclable and that 95% percent of unused materials are recycled and used elsewhere.”

Social and environmental benefit

Reflecting on the company's sustainability efforts, Zhang added that “the solar system and the electricity it produces is equivalent to 35 US homes’ worth of consumption.” He explained that this is like taking 35 homes off the grid. “How could that not be a good thing?”

Furthermore, Zhang added that their location was deliberately chosen and is more centralized. They have managed to save around 60,000 miles worth of driving in total. “That’s like taking six cars off the road right there!” he said. In addition, he noted that the building they operate in is also managing to be a lot cheaper than similar structures. Typical businesses spend about $3 per square foot while Princetel spends about $.75 per square foot. They consume less than a third of the average energy to heat and cool the building. This can then be converted back into more houses being taken off the grid.

Adding together all their energy saving practices, “it will probably be the equivalent of taking 4-50 houses off the grid from energy savings alone,” he stressed.

Even with all the energy and financial savings, Zhang was more concerned with the impact on his employees. The company’s practices encourage their employees to always do the right thing. When they see all of their sustainable practices, such as their air packaging, they are not going to be concerned with spending a little bit more for energy saving material. Adding to this, he also enjoys the education that their practices bestow on others such as college students, city officials, and their customers. When they see how business, society, and the environment benefits from all of this, it allows them to think about how they should do the same. He feels that this is the most that they can do at a grass roots level to spread the influence of sustainability. In the end, doing these good things all works out because it has positive effects on every front and everyone.

Interviews

Barry Zhang, CEO

Michael O'Boyle, IT Director

Business information

Princetel

Princetel

Hamilton, NJ, US
Business Website: http://www.princetel.com/
Year Founded: 2000
Number of Employees: 51 to 200

Princetel is a small, for-profit social enterprise that applies commercial strategies to maximize improvements in human and environmental well-being. It is passionate in providing a sanctuary for its employees, creating the best fiber rotary joint products, offering its customers exceptional services, and maintaining a low carbon footprint.