Bob Doetzer, President, Circuit Technology Inc.

Flexing negotiating muscle to "squeeze every penny out of the supply chain" is a familiar tactic that electronics companies use to reduce product costs. Though it's widely known -- if not widely admitted -- that pressing suppliers to the bone of their profit margins erodes quality, delivery, responsible labor practices, and the ability for suppliers to stay in business.

Fortunately, more electronics-company design teams are looking through an Eco-Design lens to discover further cost reductions. Engineering teams with whom I work find that 80% of the Eco-Design principles that apply to their products also reduce product costs in the five product life-cycle phases:

1. Materials Phase: Reducing the types and weight of materials also reduces bill-of-material costs and the cost of shipping materials and finished goods.

2. Manufacturing Phase: Designing products to be assembled more efficiently reduces manufacturing costs and delivery time.

3. Transportation Phase: Choosing resource-efficient transportation modes as well as strategically-placed hubs reduces shipping costs and risk.

4. Use Phase: Deploying the latest, energy-efficient components and designing the system to minimize heat reduces power and cooling costs.

5. Post-Use Phase: Designing products and their financial models for reuse, resale, and recycling extends the revenue stream for each manufactured good.

Here at the start of 2018, all conditions are right for electronics companies to swiftly ramp-up their Eco-Design prowess and practices, because in 2018...

— Waste is no longer someone else's problem. This year, China is stopping the import of certain recyclable waste. Designing products for extended use, reuse, and local economically-sound recycling will help stem local build-up of waste that was formerly shipped out.

— Eco-label stakes are rising. Registry for EPEAT's expanded scope (e.g., to include servers) opens in 2018, requiring relevant companies to deploy further Eco-Design for entry into certain markets.

— Executives are weighing in. The update to ISO 14001 (14001:2015) - with a transition deadline of September 15, 2018 -- requires executives to become aware of and involved in environmental initiatives; for many electronics companies the single greatest environmental aspect is their products' impacts. Once introduced to the Eco-Design / Cost-Savings correlation, executives readily get on board.

— Europe is leading again: 2018 is a milestone for EU environmental regulations related to HVAC eco-design, RoHS exemption definitions, REACH registration deadlines, and more.

The good news is that Eco-Design is not difficult to learn or implement; it simply requires training across design teams (internal and contract designers) and design-gate modification. The barriers for Eco-Design are low, and this year more companies will enjoy its financial benefits.