Manufacturing businesses who adopt circular economy (CE) strategies and practices can reduce manufacturing waste by 65 per cent, according to a Monash University research team.
Working with Victoria’s manufacturing industry, the university team has developed several strategies to enhance resource efficiency, minimise waste, and mitigate the negative effects of production and consumption by adopting CE principles and practices.
The three-year project, led by Primary Chief Investigator Professor Amrik Sohal from the Department of Management, worked with 25 leading CE businesses in plastics, textiles, general engineering and food, as well as industry associations and local government representatives.
The project aimed to assist Australia’s manufacturing sector which contributes significantly to waste generation, producing nearly 13 million tonnes of waste nationwide.
The team developed workshops and seminars for the manufacturing industry, aiming to raise awareness, build capability and support a transition to a CE.
Based on the experiences of the leading businesses involved in the study, researchers suggested several strategies to help manufacturers adopt CE practices.
Building circularity into the design of the product, including using alternative/recycled materials, is the first recommended step, in addition to taking a ‘systems’ approach to build circularity into the whole supply chain.
Researchers recommend ensuring the financial viability of the business model and being transparent and genuine in what they do in the CE space.
Helping people understand the value of what they are contributing to is another strategy, along with creating networks of like-minded communities to collaborate with others and sharing best-practice knowledge.
In Victoria, the manufacturing industry is responsible for 39 per cent of the state’s total waste, generating an average of 4350 kilograms of waste per full-time-equivalent (FTE) employee annually, resulting in almost 500,000 tonnes of waste per year in the southeast Melbourne region alone.
A post-workshop survey revealed participant attitudes and behaviours shifted significantly once they learned about the economic and cost-saving benefits of CE practices.
Jardan, an Australian family-owned high-end furniture business, was one of 25 Victorian organisations interviewed for the study.
The furniture retailer told researchers it had reduced manufacturing waste by 65 per cent by adopting CE strategies including sourcing more than 75 per cent of materials from Australian suppliers, designing products for longevity and reducing energy consumption by 17 per cent.
Professor Sohal said examples such as Jardan showed what could be achieved when CE practices were championed.
“CE focuses on optimising resource utilisation, grounded in the belief that the economic system already possesses sufficient resources,” he said.
“By enhancing resource efficiency, the goal is to decouple the economic system from resource extraction and waste generation, while extending the lifespan of resources to their maximum potential.”
For more information, https://www.monash.edu/
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