Businesses are always looking to ways to bring down costs – and also to engage with customers – and the ideas round a ‘circular economy’ can really help in a very practical way.
A ‘circular economy’ simply means that enterprises reuse materials, eliminate waste and repurpose, remanufacture and refurbish – as this graphic shows: What is the Circular Economy – and how can it help businesses become more sustainable? – Sustainable Sidmouth Champion Awards
Here are some of examples of how companies in the UK are going circular – and saving themselves money whilst gaining custom:
Making old gearboxes as good as new
John Mackie started out as a car mechanic in Lanarkshire, replacing gear boxes when they broke. But he realised that they could be mended at lower cost, so, as a young man, he set up his own company to do so.
Forty-five years ago, Mackie Transmission was driven by the incentive of manufacturers and owners to save money. It’s now a flagship for Scotland’s green economy.
When major manufacturers, such as Hyundai or Honda, find gearboxes failing during a car’s warranty period, they send it to the workshop in east Glasgow, where it is thoroughly cleaned and stripped down. With nearly 30 workers, and an average experience in the firm of more than 20 years, they are expert at identifying problems, re-tooling the equipment, testing it with their own bespoke equipment and sending it back to the manufacturer in better condition than it started.
Scots urged to make lifestyle changes to reduce waste – BBC News
The rise of the ‘Environmental Entrepreneur’: Recommerce growth is supporting the needs of consumers and small businesses during the cost-of-living crisis
Recommerce behaviours which include Resale, Refill, Repair, Rental and Return and Redistribute – defined as sharing, exchanging or selling at lower prices things that one no longer needs or has too much of – are referred to by Visa as the six Rs.
Out of the six Rs, Resale is the most well-known and understood of all the behaviours with over 47% of consumers reselling goods at least twice a year. Over one in five (23%) of small businesses in the UK already provide Resale options with 37% planning to do so in the future. Over a quarter (29%) of consumers are motivated to pay for items to be repaired, refurbished or adapted as it will save them money in the long term.
The latest study from Visa and Opinium shows that recognising the financial opportunities for the business savvy and understanding the potential for cost savings are key to encouraging Recommerce. 32% of adults surveyed said that they would take part in Recommerce activities more frequently if they could find a way to make money from their actions, such as setting up an app to sell used clothing or furniture or receiving cash incentives to redistribute surplus food. Indeed, already over half (53%) of UK adults who participated in Recommerce say they have already saved money through it.
Any environmental entrepreneurs working in – or wanting to work in – the circular economy? Enter the Champions Awards 2023 – Sustainable Sidmouth Champion Awards