ENERGY & SUSTAINABILITY


THE BENEFITS OF GOING ROUND IN CIRCLES


Piotr Siwek, EMEA Digital Marketing Director FA/Lead MCoE Manager, at Mitsubishi Electric Factory Automation EMEA, discusses implementing circular economy principles on the shop floor: the challenges manufacturers face, and how they can overcome them


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s sustainability becomes an ever more imperative issue across society, the term ‘circular economy’ is growing more commonplace within manufacturing settings. And, with


its aim to reduce material costs through reuse and extension of product lifecycles, as well as to improve efficiency on the factory floor through process optimisation, the circular economy’s advent is certainly something that manufacturers should welcome. With this growing focus on sustainability, however, comes greater scrutiny on efforts to incorporate circular practices across plants. Key legislation, such as the EU’s Corporate Sustainability Due Diligence Directive, as well as the Corporate Sustainability Reporting Directive, compel European manufacturers to share details of their efforts to minimise the environmental impact of their processes, and to ensure that their entire supply chains are adhering to the same principles.


Improve profit margins As such, manufacturers face significant pressure to ensure compliance, but to dismiss the circular economy as a mere box ticking exercise would be to ignore its potential for significantly lowering production costs. For example, reducing material consumption by designing products for durability and repairability, or incorporating recycled and renewable materials into processes to provide access to cheaper raw materials, can be effective


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ways to improve profit margins and unlock new efficiencies.


Despite the cost benefits associated with embracing circular economy principles, and the regulatory pressure to comply with them, there are various factors holding manufacturers back in implementation that must be addressed if the industry is to truly realise its sustainably driven future.


Barriers to adoption Incorporating circular economy principles are vital for closing production loops through the promotion of the reuse, remanufacturing, and recycling of materials and products. Beginning with source control at the start of the manufacturing process helps to lay the foundation for closed loop production by minimising the waste at source, such as by including more modular designs, or those that can be more easily assembled or disassembled. However, this involves complex logistics and infrastructure requirements on the part of the manufacturer, while establishing unified interface standards for products can be a distinct challenge. Both factors often serve to dissuade manufacturers from incorporating circular economy principles into their processes.


Bottlenecks in supply chain coordination is another significant challenge, with achieving closed loop production processes requiring dedicated collaboration across the various stages


PROCESS & CONTROL ENGINEERING | SEPTEMBER 2026 “ There are


various actions manufacturers can take to begin implementing circular economy principles across their operations


of production. Not only does this mean ensuring internal resources are integrated across multiple departments, but also that supply partners are aligned with circular economy principles. The battery industry offers a strong example of this type of cohesive supply chain in action, with everything from resource extraction and cell production, through to assembly and ultimately waste recycling, carried out with material reuse and regeneration in mind.


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Achieving this alignment can, however, be particularly difficult in certain verticals where supply chains are less joined up, such as the pharmaceuticals, automotive, food and beverage, and electronics sectors. Moreover, the techniques


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