Sustainability, Sourcing, and the Future of Michigan Manufacturing

Schaeffler is a global automotive and industrial supplier with operations in Southeast Michigan, where it works across the region’s manufacturing and supplier network. As sustainability, decarbonization and supply chain resilience become central to how products are designed and sourced, the region’s role in shaping next-generation manufacturing continues to evolve. SBN Detroit interviewed Courtney Quenneville, who oversees supplier sustainability, to discuss the realities of sustainable sourcing, what decarbonizing a supply chain looks like in practice, and how suppliers in Southeast Michigan can remain competitive amid changing expectations. Q: Southeast Michigan is historically known for automotive manufacturing. As supply chains evolve, what role do you see this region playing in the next generation of sustainable manufacturing and sourcing? A: Southeast Michigan has always been the heart of auto manufacturing, and I see this as a benefit to how we shape the future of sustainable supply chains. Our regional engineering expertise gives us the ability to embed sustainability standards into the earliest phases of design and production. We’re also fortunate to have many local organizations working to raise awareness and build connections across supplier tiers. This mix of awareness and collaboration is what creates the ripple effect that will carry sustainable manufacturing and sourcing into the next generation. Q: What does “decarbonizing a supply chain” actually look like in practice? Where does it begin and what makes it difficult to scale responsibly? A: Decarbonizing a supply chain is being intentional about reduction measures throughout every step, from raw materials being used all the way to delivery methods. It begins with transparency – understanding total emissions across the supply chain and then working directly with suppliers to find practical ways to reduce scope 3 emissions, especially purchased goods and services. The challenge is that not every supplier is at the same point in their sustainability journey; some are already investing in renewable energy or using greener materials, while others are just starting to measure their footprint. It’s important to understand where each supplier partner is at and help them take the next step. Scaling responsibly isn’t about expecting immediate results but building progress together. Q: What are the toughest sustainability challenges suppliers in this region are currently facing? A: Right now, suppliers in this region are facing a lot of uncertainty — tariffs, supply chain shortages, and constant pricing pressures. It’s no surprise that many suppliers feel stuck in crisis or response mode, which makes it harder to focus on long‑term sustainability. At the same time, these challenges highlight why resilience and sustainability go hand in hand. By working closely with suppliers and helping them take practical steps forward, we can show that sustainability isn’t another burden — it’s part of how they stay competitive through all of this change! Q: As more companies move toward science-based targets and emissions reductions, how will this shift affect procurement practices and supplier relationships? A: Just as Schaeffler has done, more companies will commit to science‑based targets, and sustainability will naturally become part of how they source. Procurement will no longer be just about cost and quality. Suppliers will need to be transparent about their emissions in the sourcing process as well as share future reduction levers. This visibility is crucial if we expect to continue reducing impact across the supply chain. The real shift is in relationships. Customers and suppliers will need to work together more than ever to accomplish shared sustainability goals. Once suppliers see how their sustainability efforts open opportunities, they’ll lean in further. Aligning with our suppliers on these initiatives will help determine the strength and future of our partnerships. Q: You’ve helped exceed renewable energy targets in the Americas. What insights have those efforts revealed about what’s working and what’s not? A: It has been encouraging to see the number of suppliers in the region that already have renewable energy plans in place — some are operating at 100% renewable, while others have clear roadmaps to get there. And importantly, they see that we are not the only customer requesting this information, which reinforces for suppliers that renewable energy is now a business expectation, not a side initiative. At the same time, we are learning that cost concerns can slow renewable energy adoption. Some suppliers are weighing the financial impact of renewable energy, which means timelines vary. That’s why our approach is to understand and help suppliers move forward from their current stage. We want progress that is collaborative and realistic. Q: In terms of equity and inclusivity in sourcing, how do supplier diversity and sustainability intersect and why does that matter for economic resilience in Michigan? A: In recent years, more automotive companies have aligned supplier diversity with their Environmental, Social, and Governance (ESG) initiatives — and in my view, it’s the perfect fit. The ‘social’ pillar is about community development and corporate impact, and nothing strengthens communities more than fueling the local economy. Here in Michigan, we’re fortunate to have thousands of small businesses that are ready to bring innovation and resilience to our supply chains, and investing in these businesses helps build more sustainable communities. With growing pressures to localize production, this is the right moment for Michigan businesses to demonstrate their value. Looking forward, keeping a strong network of local suppliers will be critical, not only for resilience and competitiveness, but also for advancing sustainability across our supply chains and communities. Q: What does it take to ensure traceability and accountability across complex, multi-tier supply chains? A: Traceability is about visibility and accountability is about relationships – and transparency is key for both. It means having the knowledge of your direct suppliers and where materials come from upstream, backed by strong internal tracking and a sustainability team working towards a shared goal. Also, because of the complexity of the multi-tier supply chains, accountability must be handled through collaboration with suppliers – things like industry standards, shared audits, and supplier engagement. Q: Looking ahead five years — what shifts do you expect to see in sustainability requirements and expectations for

Redesigning Marine Propellers with the Environment in Mind

Sharrow Marine, headquartered in St. Clair Shores, Michigan, is focused on marine propulsion technology. In 2024, the company’s Sharrow Propeller™ was recognized as a finalist in Fast Company’s Best World Changing Ideas North America award category. The awards honor businesses and organizations that are developing creative solutions for “the most pressing issues of our time.” SBND recently interviewed Greg Sharrow, CEO and inventor of the Sharrow Propeller, about the company’s technology and its impact on the environment and the marine industry. Q: Tell us about Sharrow Marine and your propellers. A:  Sharrow Marine designs and manufactures propeller technology. Our propeller – recognized as the first major advancement in propeller design since the 1830s – eliminates the traditional propeller tip vortices, which are a major source of energy loss. This “tip-less” design leads to a 30% increase in efficiency and reduces underwater noise by up to 80%, making it quieter than conventional propellers. From a sustainability standpoint, this means less fuel consumption, reduced noise pollution in marine environments, and lower carbon emissions. Q: How does your propeller design directly impact sustainability in the marine industry? A: Every one of our propellers is designed for a specific application, and our process allows us to predict thrust within these applications and design for maximum efficiency. This, in turn, reduces the amount of fuel a vessel needs to operate. A lot of the fuel burned in the tanker industry, for example, is bunker fuel, which is a less refined, high-sulfur fuel. By reducing the fuel required, we not only cut carbon emissions but also reduce the pollutants entering the water. This approach creates a significant positive impact on the marine ecosystem. Q: How does the increased fuel economy of your propellers translate to measurable reductions in carbon emissions? A: The math is straightforward – burn less fuel and emit less carbon. Our propellers are about 30% more fuel-efficient, which means a corresponding 30% reduction in carbon emissions. For fleet operators and the recreational boating community, this translates to significant savings and a smaller environmental footprint. Q: What challenges did you face in developing this product? A: The biggest challenge was essentially rewriting the book on propeller design. We had to develop entirely new theories of operation and create software to test thousands of designs quickly. Assembling a team of engineers and software experts to write the code was a feat, but we now have an incredible team. Another hurdle was manufacturing. Each propeller requires its own program and a multistep production process. Finding a manufacturing partner who could handle such complexity wasn’t easy. I traveled the world and ended up finding the right partner in my backyard, which is not surprising seeing as Detroit is the place for manufacturing. We were fortunate to partner with Detroit Dynamics. They’ve been incredible in helping us establish a fully functional manufacturing facility here in Detroit. Q: Beyond fuel efficiency and emissions, what other sustainability benefits does your propeller technology offer? A: Noise reduction is a big one. The noise pollution in our oceans that is created by cavitation generated from traditional propellers has a devastating effect on marine wildlife. Our technology reduces underwater noise by 3–15 decibels on average, which helps protect marine ecosystems. Additionally, all of our materials are sourced within the United States, further minimizing our carbon footprint and supporting local economies. In terms of sustainability in Southeast Michigan, Detroit is integral to who we are. This city has a rich history of engineering and manufacturing expertise, and we’re proud to be a part of that legacy. All our propellers are manufactured here in Detroit, creating jobs and supporting the local economy. Q: What opportunities does your technology present for fleet operators and recreational boaters? A:  For fleet operators, the savings in fuel costs are massive, and for recreational boaters, the benefits go beyond fuel efficiency. Our propellers reduce vibration and noise, improve high-speed control, and make docking in tight quarters much easier. For the average boater who logs about 52 hours a year, the return on investment starts the moment they turn the key. Q: How do you see Sharrow Propellers contributing to the broader efforts to decarbonize the marine industry? A: We’ve already established a strong footprint in the outboard motor market, but the inboard motor market – specifically for blue water and oceanic vessels – represents a massive opportunity. These vessels are some of the biggest polluters due to their reliance on bunker fuel. By applying our technology to this segment, we can significantly reduce sulfur emissions and improve fuel efficiency, effectively decarbonizing a critical part of the industry. We’re also partnering with VEEM in Australia to bring our innovations to the global market and are in the process of growing to full production scale of the SHARROW by VEEM. Q: Looking ahead, how do you see your propeller technology fitting into broader sustainability efforts? A: We’ve been focused on the marine industry, but interestingly, the propeller was originally developed for use in the air. So, as we move forward, expanding into renewable energy applications is a priority. Whether it’s wind turbines, hydro-energy, or further innovations in marine propulsion, our goal is to make a meaningful impact on how energy is generated and consumed.   Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.