Manufacturing sector information hub
What is the circular economy?
Enough for everyone. Forever
The circular economy is a direct challenge to the ‘take-make-waste’ mentality of the linear economy. In a circular economy waste is minimised and resources maximised through long-lasting design, maintenance, repair, reuse, re-manufacturing, recycling and up-cycling.
30% is never reused or recycled
Without fundamental redesign and innovation, 30% of plastic packaging will never be reused or recycled.
£620 million growth
The remanufacturing sector has a growth potential of £620 million and could generate 5700 new jobs.
27% of global emissions
'Heavy industry' - including the production of cement, steel, chemicals and aluminium - accounts for 27% of CO2 emissions worldwide.
Paul Sheerin
Chief Executive, Scottish Engineering
“Manufacturers have a very important role to play in circular innovation and have the opportunity to ensure products are designed and manufactured with minimal impact to the environment and offer additional value-added services. We are committed to helping manufacturers grow their national and global competitiveness through circular strategies.”
How does it relate to the manufacturing industries?
Circular economy principles can play an instrumental role in rethinking and transforming business. This is especially true for those businesses in the manufacturing industry – where the possibilities for new avenues including new business models, new ways of designing and producing, new supply chain routes and new collaborations can seem endless. A circular economy is not just an opportunity to tackle the climate emergency, it is an opportunity to reshape and future proof how business is done.
Circular manufacturing strategies consider the entire production process and lifespan of every resource or material used throughout the process. For example, Scottish Leather Group (who manufacture high-end, low-carbon leather) have an almost entirely closed-loop process that tracks, uses and reuses everything from the cow hides to water and energy usage that goes into the production of leather.
Where to start?
Businesses considering how to apply circular economy principles to their production and processes could consider the following:
- Improving product design for longevity, modularity or repair
- How to reduce the use of virgin material consumption through materials that can are recycled or highly recyclable
- Reduction or reuse of waste and energy throughout the manufacturing process and supply chain
- The use of technology and digital innovation to improve efficiencies
- How resources and materials are sourced throughout the supply chain
Benefits of a circular economy in manufacturing
One of the most important aspects of a circular economy is that it not only benefits the environment but considers the economic and competitive growth of the business too.
For example, benefits that businesses have already seen through the introduction of circular manufacturing processes include:
- Reduction in production costs
- Increase in production efficiency
- Increase customer loyalty and competitive advantage
- Increased security in resource and material supply
- New revenue streams (e.g., from waste material in the production process that could be used in other industries)
The circular economy in action in the manufacturing industry
Rethink Business Model
Through the circular economy we are seeing a shift from owning goods to using services, where the customer shifts from owning materials or products towards using, sharing, borrowing, and renting them. Companies act as owners of products throughout the product’s entire life cycle.
Beauty Kitchen's 'Return - Refill - Repeat' scheme allows for beauty packaging to be used again and again.
Read more about the scheme here.
Think Tech
Digital technologies, such as the Internet of Things, big data, data analytics, and Artificial Intelligence are considered essential enablers of the circular economy. They can help to close the material loops by providing accurate information on the availability, location, and condition of products.
Topolytics' 'Waste Map' platform applies mapping and machine learning to accurately track and recover materials often destined for landfill.
Learn more about Topolytics here.
Rethink Resources
Identifying waste streams in your own or another’s organisation could help realise both resource and cost savings. Businesses are using circular economy thinking to find radical new ways to repurpose waste and save scarce resources.
CuanTec use waste from the shellfish industry in the manufacture of their sustainable, innovative packaging.
Design for the future
Design plays a key role in supporting the transition towards more circular solutions. From designing new systems and processes, designing for durability and reuse to designing waste out completely.
Scottish Leather Group have designed their entire leather manufacturing process for a high, quality product made to last.
Collaborate
Sharing best practice and finding new business opportunities is vital for any business. However, collaboration across and within industries and companies is even more important in a circular economy, where actors are more dependent on each other and can benefit more from streamlined connections.
Cullen work with and supply businesses who share their circular economy ethos.
Further resources
Contact Us
If you're interested to learn more about how the circular economy strategies mentioned above could be applied to your business, send us an email at circularglasgow@glasgowchamberofcommerce.com to set up a call.
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