Summary. OEMs are increasingly required to prove their products are built by sustainable suppliers—complete with data on scrap, energy use, recycling, and packaging. When a contract manufacturer can’t provide this, projects, margins, and customer trust are all at risk. The blog shows how to turn your sustainability goals into clear supplier requirements, evaluate scrap and energy practices, scrutinize packaging and logistics, and demand data-driven continuous improvement. It also highlights common mistakes people make when evaluating a supplier, like relying on marketing claims instead of real metrics. Finally, it explains how Mathison Manufacturing bakes sustainability into precision fabrication to protect your brand and bottom line.

Read the full blog to see the specific questions, examples, and checklist you can use to choose a truly sustainable manufacturing partner.

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It happens all the time…

An OEM wins a major project with a high-profile customer. The design is solid, pricing is within budget, and the launch plan is strong.

Then the customer’s team asks for details, such as scrap rates, packaging waste, energy use, and recycling practices at key suppliers. Unfortunately, the OEM’s primary contract manufacturer can’t provide any verifiable documentation because no one tracks these metrics, and no standardized, documented recycling process exists.

This lack of critical information places the entire project at risk. Per the terms of the contract with their new customer, the OEM is required to use suppliers that meet defined sustainability criteria and provide auditable documentation, and their primary partner doesn’t qualify.

This leaves the OEM scrambling to find a partner that can handle the job while meeting their customer’s requirements.

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This is the reality many manufacturers face. In a world of sustainability scorecards, audits, and compliance requirements, you need an environmentally responsible and conscientious contract manufacturing partner that will protect you, your relationships, and your margins.

The Real Problem: Practicing Sustainability Isn’t a High Enough Priority

While many contract manufacturers understand the value of sustainable business practices, not all of them view it as a priority until it puts them at risk of losing existing customers or winning new opportunities.

Ideally, your contract manufacturing and metal fabrication partner will be proactive rather than reactive when it comes to sustainability, and will also take pride in explaining how they practice it.

Fortunately, it’s easy to spot whether a manufacturer prioritizes sustainability, or treats it as an afterthought. Look for the signs:

• When you ask for scrap, recycling, or packaging data, it takes days, or even weeks to arrive, and when it does, the data is vague.
• Sustainability verbiage in RFQ responses is either absent, very short, or generic.
• On plant visits, you see bins filled with mixed scrap.
• You never hear your partner talk about sustainability or see them promoting it as a competitive advantage.

5 Steps to Choosing a Sustainable Contract Manufacturing Partner

1) Turn your sustainability goals into supplier requirements

What to do:

1. Identify your top three to five priorities (waste, energy, packaging, responsible sourcing, etc.)
2. Convert each into clear supplier expectations
3. Bake those into your RFQs, supplier scorecards, and reviews

Why it matters: If you don’t define what “sustainable” means for your business, suppliers can only guess, with some only doing the bare minimum. When expectations are clear, a partner like Mathison Manufacturing can align with your goals.

Example: A medical OEM requires its supplier to track scrap by alloy, document their recycling practices, and minimize single-use packaging.

2) Evaluate material and scrap practices

What to do:

1. Ask for scrap rates on key alloys and part families
2. Know how scrap is sorted, recycled, and reported
3. Ask how engineering plays a role in minimizing material waste

Why it matters: Material efficiency supports sustainable manufacturing and improves profitability. A contract manufacturing and metal fabrication partner that optimizes nesting, reduces offcuts, and manages scrap lowers both your costs and environmental impact.

At Mathison, our focus on tight-tolerance sheet metal fabrication and disciplined scrap control is one of our strongest competitive advantages.

Example: On a stainless enclosure, a small design tweak plus better nesting reduced material usage by 5.6%, cutting both cost and waste.

3) Review energy use

What to do:

1. Identify energy-intensive processes used to produce your parts (e.g., lasers, presses, finishing, test stands, etc.)
2. Ask how your partner measures and manages energy on those assets
3. Favor suppliers investing in efficient equipment and optimized scheduling

Why it matters: Energy impacts the cost of your projects, often through overhead and energy-intensive processes. The more kWh a process burns to make your product, the more that project ultimately costs over time.

Example: A partner upgrades to a more efficient laser platform and uses automatic power-down between jobs, reducing kWh per part over time.

4) Don’t overlook packaging, kitting, and logistics

What to do:

1. Know how your parts and assemblies are packed and shipped
2. Ask about reusable totes, custom dunnage, and right-sized cartons
3. Explore kitting and line sequencing options to reduce handling and waste

Why it matters: Your customers see your packaging, pallets, and waste stream. What does it all say about your concern for the environment?

At Mathison, we use smart packaging and kitting to minimize landfill waste, damage, and total landed cost.

Example: For a recurring build, a partner replaces foam and single-use corrugate with reusable totes and dividers, lowering waste and damage claims.

5) Check for data and continuous improvement

What to do:

1. Ask how scrap, rework, energy, and packaging metrics are tracked
2. Request sample reports or dashboards
3. Ask about recent changes or initiatives focused on improving sustainability

Why it matters: Sustainable manufacturing must be managed like quality and delivery, with measurement, reviews, and ongoing improvement.

At Mathison, sustainability is a business imperative, not a side project.

Example: In a quarterly review, your partner shows scrap and packaging trends for your assemblies, along with upcoming improvement opportunities.

Common mistakes when choosing a “green” partner

• Evaluating based on marketing claims instead of data: Certifications help, but customers still expect metrics behind them. Ask for the numbers.
• Skipping the plant visit: A trustworthy, reputable contract manufacturer will be proud to show you around their plant and how they practice sustainability.
• Focusing only on per-piece pricing: Hidden costs in scrap, damage, freight, and rework can erode savings and hurt your sustainability scorecard.
• Assuming low volume doesn’t matter: Sustainability is a process and a mindset ­­— not a single action. It is part of every project, no matter the size.

Your Checklist:

• Map your top five sustainability expectations
• Turn those expectations into specific supplier questions and RFQ language
• Ask current suppliers for scrap and recycling data
• Assess how your parts are packaged and shipped
• Visit your partner’s facility and observe their sustainability practices. Ask questions.
• Request a sample sustainability or performance report

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For many businesses, practicing sustainability is no longer optional. More customers are requiring proper tracking and documentation to ensure they are working with a partner that meets their requirements, and the requirements of their customers. When researching a supplier, let your gut guide you in terms of knowing which ones do the bare minimum because it’s required, and which ones practice sustainability because they are proud of doing their part in contributing to a cleaner environment and planet.

Where does Mathison Manufacturing stand on sustainability?

We combine precision contract manufacturing and fabrication with practical, measurable sustainable practices. From material utilization and scrap control to smarter packaging and efficient processes, we help OEMs strengthen both their supply chain story and their margins.

If you’re evaluating who should build your next generation of products, consider Mathison as a partner with sustainability already built into our entire business.

Read more about our sustainability here.

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About Mathison Manufacturing

Founded in 1959, Mathison Manufacturing is a trusted partner in precision contract manufacturing, specializing in tight-tolerance sheet metal fabrication, electromechanical assemblies, and complex, high-end solutions. Known for exceptional craftsmanship, responsive service, and a customer-first mindset, Mathison is dedicated to delivering quality products and building lasting partnerships that help customers grow.

Let’s work together on your next project! Contact us today!