Circular Economy: Rethinking the wealth workflow

The problem with buzzwords is they can obscure real communication. Circular economy is the same as “thrift,” a word very common in your grandparents’ time. The idea was simple; make, mend and reuse. It sounds almost “cutting edge,” but it is a utilitarian principle.

Circular economy flips the linear “take-make-dispose” model on its head, focusing instead on closing the loop by designing excess material, time and resources out of systems. Globally, only 9% of materials are recycled or reused (Circularity Gap Report 2023).

Many consumers often don’t know how, what, or where to recycle, despite an inherent leaning to do so. The word “consumer” is less functional in reshaping behavior than “user.” It is a guiding trope of the vernacular of planned obsolescence or throwaway culture. Many people want tactile quality experiences, not a double whammy of trash wrapped in plastic.

Concepts of “waste” are emotionally charged and “mainstream” perspectives are transactional. Once producers sell “goods,” the profit is extracted by selling to a consumer. A full lifecycle is an externalized problem, detached from production, profit and consumption. This is precisely the framing that circular economics, lean manufacturing and systems thinking addresses. Rethinking flips a stale narrative: Waste isn’t waste—it’s wealth waiting to be unlocked.

Shifting Value to a Systems Perspective

To support a circular economy, value must expand beyond the moment of sale and integrate:

  • Lifecycle Value. A product isn’t “done” when the consumer is done with it. Its materials, components, and energy have ongoing potential value. Network Value. Waste from one system becomes an input for another. The value isn’t isolated to one product but exists across interconnected industries. End-of-Life Value. Products must be designed to retain or regenerate value through repair, reuse, or recycling.

Intangible Value: A Critical Shift

Circularity pushes us to think beyond just physical components:

  • Environmental Value. Preserving ecosystems isn’t “free,” but it’s rarely accounted for in product value. Circular models inherently reduce environmental costs like pollution or resource depletion. Social Value. Reuse and repair models create jobs and skills. For every 10,000 tons of waste recycled, 36 jobs are created, compared to just 6 jobs for landfill disposal (Institute for Local Self-Reliance). Consumer Trust as Value. Brands that embed circular principles earn consumer loyalty. A recent survey found 78% of consumers prefer buying from environmentally responsible companies.

Examples

  • 🟩Fairphone modular phones and headphones allow easy upgrading or repair, extending their lifecycle.
  • 🟩Patagonia’s worn-out jackets are repaired and resold through their Worn Wear program
  • 🟩Regenerative farming practices turn agricultural waste into biofertilizers, improving soil health—an ecological and economic gain.
  • 🟩Orange peels from juice production are turned into biodegradable plastics.
  • 🟩Dell uses IoT to track plastics in its supply chain, ensuring recycled materials return to production lines.
  • 🟩Michelin’s tire-as-a-service model charges based on mileage, maintaining ownership of the tires to recycle or reuse materials when worn.

Ready to discuss your IoT project?

Let our engineers offer you quality technology consulting services.

Sign up for a free consultation.