P2 Incentive Contracts Enhancing Diffusion of P2 Technologies in the Metal Plating IndustryEPA Grant Number: R824745
Title: P2 Incentive Contracts Enhancing Diffusion of P2 Technologies in the Metal Plating Industry
Investigators: Bierma, Thomas J. , Waterstraat, Francis L.
Institution: Illinois State University
EPA Project Officer: Lee, Sonja
Project Period: October 1, 1995 through September 30, 1997
Project Amount: $199,964
RFA: Incentives and Impediments to Pollution Prevention (1995) RFA Text | Recipients Lists
Research Category: Sustainability , Pollution Prevention/Sustainable Development
Description:The purpose of this project is to: 1) identify currently used innovative contractual relationships between manufacturers and their chemical and equipment suppliers which enhance or accelerate P2, and 2) adapt these strategies to the needs of small businesses, particularly in the metal finishing industry. The first purpose of the study will be accomplished primarily through a study of the U.S. domestic automakers and the "Shared Savings" relationships they have developed with their chemical suppliers (such relationships have been called "Chemical Management Services," "Pay-as-Painted," "Total Fluids Management," and other names). In these relationships, chemical suppliers provide ideas which promote improved chemical use efficiency, and in return, the automakers share a portion of the resulting savings with the supplier. Such relationships are also typically characterized by close cooperation between manufacturer and supplier, and the involvement of the supplier in all aspects of on-site chemical management and use. This work will be conducted through a series of on-site and telephone interviews, as well as use of the literature.
Also to be studied are a number of innovative strategies used by suppliers of equipment which can reduce waste generation. These suppliers overcome lack of capital on the part of manufacturers by finding ways to finance the equipment through the savings it produces. They overcome manufacturer uncertainty about equipment performance by guaranteeing savings, linking fees to performance, and other innovative strategies.
To accomplish the second purpose of the project, adapting these strategies to small metal finishers, the technique of "metaphorical analysis" will be used initially to highlight the similarities and differences between the automakers and small metal finishers, and to identify potential ways in which the strategies could be adapted. Personnel from the automakers, suppliers, and metal finishers will then respond to and modify these adaptations. Finally, pilot studies sites will be sought among small businesses.