Well, it exchanges the typical cycle of make, use, dispose in favour of as much re-use and recycling as possible. The longer materials and resources are in use, the more value can be extracted from them. This in turn can reduce overall demand by recovering the resources, nutrients or energy contained in products at the end of their useful life.
Extending the life of products and materials prevents the over-generation of waste and recovers the full value of products. This is creating new business opportunities and revenue streams, while minimising the environmental impact of mining, resource extraction, refining and manufacture.
Norkram LTD has been in existence for over 24 years now, and is a concept thought of by Mark Cruttenden and Ron Slater to minimise the dumping of pipe thread protectors and related items in the off-shore industry. It has grown over the years from a 2 man band to an 18 man company with a naturally growing turnover.
We are most definitely a circular economy business. The whole company has been built on these principals. We didn’t do it to be trendy (bear in mind the circular economy concept was unheard of in 1994). We did it because the owners saw some value in (a) reusing a product that could very easily be tested and passed back for its original purpose rather than being a disposable item, and (b) recognising that the product still had intrinsic value in its raw component parts, even if it was damaged beyond repair.
Nobody was really looking at the circular economy at that time as a real business opportunity. Now however, the concept of circular economy has left the realm of academic theory and entered the world of business in a more main stream way.
The price of natural resources and materials is soaring, and in response to volatile markets and increasing competition, developed nations are examining this sort of alternative economic model. In this country however, we have a (fairly) robust economy and a lot of businesses have never felt the need to enter into a circular economy model. After all, we’re all in business to make a few pounds.
There are a few businesses out there that will not have the time, and / or resources to analyse their proceses and waste products (or even further opportunities with other companies) to find an economically viable output that meets the circular economy model. And there are a few companies that may not lend themselves to the model either.
But from experience, I do know that there is money to be made from doing so, and there are also sustainable business ideas within already profitable businesses. I say, why not make more cash and help out the planet and the economy at large at the same time?