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Circular Economy in the Manufacturing Sector

January 15, 2025 Enrico Vecchio

The circular economy represents a revolution in the way we consider the production and consumption of goods. Unlike the linear "production-use-disposal" model, the circular economy promotes a continuous cycle of resource use, minimizing waste. This approach has major benefits in manufacturing, where adopting circular practices can boost both environmental and economic outcomes.

The circular economy promotes reusing resources, reducing waste, and recycling components into new materials. In the manufacturing sector, this approach can be adopted through various strategies:

  1. Re-Design: Design products that are easy to disassemble and recycle.
  2. Use of Recycled and Renewable Materials: Integrate recycled materials into production processes.
  3. Maintenance and Repair: Create modular and easily repairable products.
  4. Post-Consumer Collection and Recycling: Implement systems to recover and recycle end-of-life products.
  5. Extend life cycle through services – Servitization.

The circular economy provides a sustainable vision for manufacturing, requiring commitment and collaboration to overcome challenges and build a resilient economic system.

Around 30% of global industrial organizations use at least one circular economy practice says the Circular Economy Network 2023 study. Around ​45% of industrial trash is recycled globally on average, with some top nations reaching as high as 70%. About 40% of manufacturers are exploring or adopting circular models, like take-back programs and product-as-a-service. Businesses adopting these strategies report up to 25% gains in resource efficiency and 15% reductions in operating costs, reflecting a growing trend toward sustainability in manufacturing. 

 

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Let's look at some striking examples of benefits achieved by companies that have chosen a circular approach:

  • Cost Reduction: Savings on raw materials and waste management.
  • Increased Competitiveness: Innovation in products and more efficient production processes.
  • Environmental Sustainability: Reduction of ecological impact and improvement of corporate reputation.
  • Job Creation: New opportunities in the recycling and waste management sector.
  • Enhance Customer Fidelity & Relation: from transactional in linear models to relational by giving them continuous services.

In recent years, many global manufacturing companies have adopted circular practices, achieving significant gains in sustainability, profitability, and competitiveness.

Let's look at two examples of companies that have benefited from a circular approach. 


A virtuous example of textile production

The company we are highlighting specializes in synthetic fiber production and has embarked on a project to integrate a circular approach into its operations. This initiative focuses on producing Nylon fibers and polymers using a circular model. The company has developed a process to recycle nylon waste (like fishing nets and carpets) into new nylon, usable in sectors such as fashion and furniture. Reusing waste materials to create new products helps reduce waste, minimize environmental impact, and profit from reviving what would otherwise be discarded. Through this innovative project and its commitment to circular practices, the company ‘s become a leader in the circular economy :a benchmark for quality and innovation.

When Circularity Fuels the Company Vision

A leading global company in the eyewear sector has launched numerous circular economy projects to integrate sustainable innovation across all its products and services. These projects span the entire product life cycle, from sourcing innovative materials and developing recycling processes to reducing materials, promoting eco-design, and investing in new technologies. Choosing to make circularity a cornerstone of your vision leads to numerous advantages, such as efficient resource use and waste reduction. It also helps build a strong brand reputation, which is increasingly important in a market where consumers prioritize sustainability. This focus on sustainability becomes a key factor in their product choices.

 

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These examples and data show that the circular economy is not only sustainable but also a real opportunity for companies to grow, innovate, and respect the environment. Technology is a key enabler of circularity, providing tools to optimize resource use, enhance recycling and design sustainable products. Many companies have adopted innovative technologies for circular practices, showing how these advancements drive efficiency, sustainability, and improve environmental impact.

At Avvale, we believe technology and human innovation can drive circular models, helping companies achieve sustainability, profitability, and positive global impact while staying competitive.
So we support companies daily in their digital transformation journey towards a prosperous and circular future. 

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