Circular manufacturing for a sustainable economy

What are the benefits of circularity in manufacturing?

Circularity offers manufacturers clear benefits that go beyond sustainability goals. It reduces costs, boosts resilience, and creates new value across the product lifecycle.

1. Cutting resource dependency

Recycled inputs help manufacturers reduce reliance on raw material extraction. Apple’s 2024 Environmental Progress Report revealed that 80% of its rare-earth elements and 99% of tungsten came from recycled sources.

In MacBook Air models, 78% of cobalt and over half of total materials were recycled, dramatically reducing demand for virgin mining.

2. Extending product life through refurbishment

Philips’ “Circular Edition” program refurbishes advanced imaging systems, offering them at roughly 25% less than new while maintaining like-new performance. This initiative extends product value and lowers carbon impact, without compromising quality.

3. Recycling materials into high-value applications

In 2025, Lime partnered with Redwood Materials to recycle batteries from its retired e-bikes and scooters. The process recovers more than 95% of critical materials, like lithium, cobalt, and nickel, which are then reintroduced into the battery supply chain.

This closed-loop model not only conserves finite resources but also supports the growing demand for sustainable battery production.

4. Using endlessly recyclable materials

Materials like aluminum offer long-term value in circular systems. Nearly 75% of all aluminum ever produced is still in use today.

What are the challenges of implementing circular manufacturing, and how can you move forward?

Even with strong sustainability goals, manufacturers often encounter significant barriers when transitioning to circular models. Here are the most common challenges—and more innovative ways to move forward.

1. Legacy systems and outdated infrastructure

Many manufacturers are still working with siloed systems that make it difficult to share or synchronize product information.

Without integration across platforms, such as ERP or PLM, teams often rely on disconnected tools or manual processes, which creates delays and inconsistencies.

What to do instead: Begin with data centralization. A PIM system that integrates with core platforms, like SAP, helps eliminate data silos and ensures that product information is consistent, reliable, and usable across the organization.

2. No clear link between data and revenue

Another challenge is translating sustainability goals into commercial value. Circular initiatives, whether focused on recycled content, take-back programs, or modular design, require upfront investment.

What to do instead: Treat product information as a growth lever. Teams that turn data into revenue-generating assets can reduce returns, increase speed to market, and unlock circular business models.

3. Supply chain misalignment

Fragmented supply chains can also make it hard to track materials, enforce standards, or align on reuse models.

Brands that prioritize circularity across the supply chain are better positioned to scale reuse and refurbishment programs efficiently.

What to do instead: Build stronger partnerships with suppliers and logistics providers. Start by mapping touchpoints that support supply chain circularity, such as reuse loops and return programs.

4. Regulatory uncertainty

From extended producer responsibility (EPR) laws to digital product passport requirements, manufacturers are being asked to track and disclose more product information than ever before.

Regulations also vary widely across markets, which complicates efforts to scale circular practices globally. Many teams struggle to keep up with shifting documentation standards, certification requirements, and sustainability reporting expectations.

What to do instead: Build a scalable, future-ready compliance strategy. Centralized systems for product compliance management make it easier to stay ahead of regulatory updates, while structured product information ensures your teams can respond quickly, without starting from scratch each time rules change.

5. Disconnected teams and workflows

Circularity touches every part of the organization, but too often, these teams work in silos, each relying on their own files, tools, and standards.

This misalignment leads to errors, duplicated efforts, and delays in launching circular initiatives. Without a shared view of product data, collaboration is slow and execution suffers.

What to do instead: Prioritize cross-functional alignment by using digital tools that support shared workflows and centralized access to product content. Solutions designed for collaboration across teams help reduce bottlenecks, improve transparency, and keep everyone working from the same source of truth.

Is it feasible to achieve circularity in manufacturing?

Circularity is achievable—but it isn’t easy.

For many manufacturers, the challenge lies in modernizing outdated infrastructure, updating supply chain practices, and investing in systems that support transparency across the product lifecycle. The upfront cost and complexity can feel high, especially for companies just beginning the shift.

But change is gaining momentum. Consumers are demanding more sustainable products. Governments are setting stricter targets.

In the EU, the Circular Economy Action Plan is driving new requirements across industries, from cosmetics, to furniture to textiles. Regulations like digital product passports are already on the horizon, making circularity not just a sustainability goal, but a compliance expectation.

The obstacles to circularity may not be gone, but they’re getting more manageable. Digital tools that once felt out of reach are now more practical, better integrated, and easier to scale. Manufacturers no longer need massive teams or budgets to start making progress.

How can you make manufacturing more circular?

Circular manufacturing requires action across every stage of the product lifecycle. From material choices to data systems, these steps help build a more sustainable and future-ready operation:

1. Design for longevity and adaptability

Modular components, repairable parts, and upgrade-friendly formats allow products to stay in use longer and re-enter the market after refurbishment.

These design principles also support increasing demand for tailored offerings in industrial and consumer markets—where flexible product configurations are becoming standard in manufacturing workflows.

2. Prioritize recycled and renewable materials

Integrating secondary materials not only reduces environmental impact but also makes supply chains less vulnerable to resource scarcity.

Evaluating material circularity early in the sourcing process can lead to long-term gains in cost and compliance.

3. Build in traceability from the start

Circular strategies rely on knowing where materials come from, how they’re used, and where they end up. Emerging tools, such as digital product passports, are making it easier to deliver the traceability that regulators and customers increasingly expect.

4. Work with aligned supply chain partners

Repair services, logistics providers, and recycling networks play a critical role in circular execution. Manufacturers with strong collaboration models are already seeing value gains in service-based sales and lifecycle offerings, a vital trend shaping the future of manufacturing commerce.

5. Use product data as your foundation

Centralized, reliable product information underpins every circular initiative—from material disclosure to end-of-life handling.

A dedicated system for managing this data, like a PIM built for manufacturing, supports scale, speed, and compliance across global operations.

Strengthen your manufacturing operations for a circular future

Product teams are being asked to do more with less—less waste, fewer virgin materials, stricter regulations. The shift toward circularity isn’t only about product design. It’s about data.

When product information is scattered or outdated, decisions slow down—or happen in isolation. Sourcing can’t react to engineering changes. Compliance teams miss key details. Marketing is left without proof points for sustainability claims.

That’s often where momentum fades. Not because the vision isn’t there, but because the foundation isn’t solid.

If you’re looking to bring circularity into your product operations, start with the one thing everything depends on: your information.

Let’s make it work harder for you.

Published: April 5, 2023
Updated: July 8, 2025