Creating a Circular Economy
At present much of our economy is designed with the elemental framework of the linear economy. This type of economy is designed with the methodology of products being designed/manufactured, distribution and ending with unused product becoming waste. In keeping with this model, we as a company and sector are experiencing vast amount of profit loss and observing a lower return on investment (in the long run), as the waste product is not employed for another purpose, thereby allowing for the sector to observe the waste product having to be stored and discarded. in return, we are having to spend more revenue from an overall perspective, than we would if we employed a circular economy. As described in the figure below, a circular economy varies from other economy structures such as the linear economy in that it allows for the unused waste to be redistributed back into the economy, thereby allowing for more sustainable and monetary growth. Taking Circular economy into the engineering market, where many of our products contain chemicals that are not natural products from the earth, the circular economy allows us to take the waste an reapply it for other purposes, or even the same purpose as its initial use. In response, we will be one of the lower markets supplying waste to the environment, thus saving us money from waste cleanup and mitigation techniques (this will also help our public image as being a more sustainable company, thereby turning public sentiment to the companies favor and causing a chain reaction). Another perspective that is important to this type of economy is the notion that we can downsize our production methods from a global macro level to a micro level, thus saving the company more money in the long run. Now we must observe the obstacles that would be facing our company in switching to this type of market. One of the most prominent being that of a higher initial cost for our company to re-organize our production methods to ensure that the products can be implemented again after their first initial use. This would require cooperation from our manufacturing subsidiaries as well as regional officers to ensure that a smooth transition takes place. If we look at the benefits of a circular economy, we can conclude that redesigning our production stages to match those used in such an economy would be more beneficial for our company than keeping a linear economy.