Circular Economy
Circular Economy Characteristics and Concepts
The circular economy is a closed economic system where there is a limited outflow of resources along with the production system. A company that applies a circular economy uses processes that go in cycles rather than linear methods. A waste product at a given production stage is used as a raw material for a subsequent step. A circular economy is used for a company’s sustainability in three aspects; society, economy, and environment. The system is retaining high utility for products all their economic life (Batista et al. 2018 p.422). Products are made reusable deriving economic value in materials perceived to be useless even after they have been used before. For instance, electrical appliances can be made in such a way that after they satisfied their given economic life, they can be repaired and used to serve the same purposes as before.
Products initially used can also be recycled to produce different useful products. For example, plastic products can be recycled into pellets useful in the production of new plastic items. Circular economy principles include ecosystem conservation, population growth control, increased public engagement, biodiversity conservation, sustainable society achievement, and improvement of human resource (Batista et al. 2018 p.420). Generally, a circular economy is used in controlling waste through the creation of value for the trash. Circular economy emphasizes sharing, reuse and repairing of products to maintain them productive in the marketplace. Products already created are kept and preserved to be used at a late stage when their value goes up. Companies should concentrate on sources that can offer more than one raw material for a circular economy to be achieved.
Investing heavily in technology is a significant component in realizing a dynamic circular economy. Technology helps the company to easily integrate its human resource in the creation of value of waste products. Products manufactured using circular economy remains useful for as long as possible (Batista et al. 2018 p.423). The circular economy is associated with minimal waste production and is economically friendly. Consequently, costs that would have otherwise used n sourcing of new raw material are eliminated, saving the Company financial expenditures.
Reasons for Circular Economy
The circular economy is mainly for sustaining companies due to increased pressure on available raw materials. Economically, raw materials are costly and limited in supply. The global population is continuously growing, causing a lot of pressure on the existing raw materials (Bocken et al. 2016 p.312). Recycling, sharing and remanufacturing of products helps in designing more products at less cost. There is increased raw material supply security due to reduced pressure, and companies can effectively do proper planning without necessarily straining other resources in the company. Branding through innovation helps in achieving uniqueness and competitiveness in the market, stimulating quality production. A company can sell waste products from their processes which are not useful to them to other firms. The trading between businesses helps create mutual relationships between the trading companies good for a healthy business environment.
The circular economy plays a vital role in maintaining a pollution-free environment. Recycling of waste products helps in the reduction of solid waste that if dumped carelessly litters the environment. Waste products are composted providing clean sources of energy which helps in fighting emission of harmful gasses in the background (Bocken et al. 2016 p.316). Greenhouse impact is generally reduced through recycling, and this positively impacts on global warming. Scientists have warned that further exploitation of the ecosystems would be a severe threat to human survival and that of other species in the long run. Circular economy helps to educate people on the need for conserving the environment and solves challenges threatening human survival. Excessive exploitation of resources without recycling would also lead to depletion of natural resources making it less attractive and sustainable.
Circular economy helps create jobs to the general public. Recycling processes require human resource deployment, and this creates job opportunities for the people. People with lesser skills are well accommodated in the circular economy compared to the linear economy due to increased flexibility and accommodativeness. Extended use of products through reuse and repair ensures that customers derive maximum value from the usage of products (Bocken et al. 2016 p.310). Additionally, products made from recycling are affordable and practical for customers. People with low incomes are able to purchase due to increased product varieties at different prices. Increased competition due to technological advancements leads to the production of quality products which are economical to the buyers.
Role of Circular Supply Chains in Circular Economy
Circular supply chain models necessitate producers and sellers of items to acquire materials which are mostly out of use and utilize them as raw materials in making of new products. Companies refurbish used products making them the raw material for manufacturing other products. Circular supply chains collect wastes and convert them into opportunities for the creation of other new products. Generally, circular supply chain helps in the production of value from waste that lays unexploited (Bocken et al. 2016 p.318). Governments are developing strict measures on recycling and disposal policies to avoid environmental degradation. According to circular supply chains input is treated the same as output in terms of usefulness. The outputs are processed back to contributions though at low costs to retain them in the economic system.
The traditional model of the supply chain where only raw materials were supplied to manufacturing companies with products being availed to the market have been demolished. Circular supply chains have adopted new duties that include storage of waste and its transportation to reuse in relevant production systems either in the same company of a different company. Byproducts are used by manufacturing companies as a new source of economy though previously used (Shaw 2020 p.4). Circular supply chain helps in the creation of jobs for the public through integrating them in the collection of the waste and eventually providing modified products at affordable prices. Increased innovation has led to the production of safe energy, in turn, helping to retain a sustainable environment vibrant for human activities (Shaw 2020 p.8). New talents have been identified and natured. For instance, glass bottles are currently powdered and used in the production of colourful floor surfaces.
Role of Circular Economy in Job Creation
Globally there is an increased risk of joblessness, and the UK is not in the exception. For jobs to be created, there must be enough people to uptake the created opportunities. The circular economy provides the needed opportunities more so to the semi-skilled personnel who have been deemed obsolete in the existing production systems. Significantly, skills mismatch have become a significant crisis in the job market (Shaw 2020, p.7). Current job markets demand highly qualified personnel, and as a result, due to improved technology, many skills have become unuseful rendering may people irrelevant in the job market. The circular economy has introduced new cheap remanufacturing processes that do not require much expertise absorbing most middle-skilled personnel. Renewable energy is on the increase and assisted a lot in the absorption of many middle-skilled workforces. Job creation boosts the development and maintenance of the health economy. Employed people are able to provide for their expenses and stimulate economic growth. The circular economy is much focused utilizing resources are lying idle in the environment (Shaw 2020 p.9) According to a report by Cambridge Econometrics, Circular economy has the potential of increasing the GDP of Europe by 0.5 per cent. Additionally, 700,000 more jobs could be created through the shifting of focus from the readily available resources to investing heavily in recycling and remanufacturing plants. Therefore, the circular economy helps in the creation of sustainable jobs and linking the unemployment gap, thus stimulating the economy.
Biffa Waste Services Business Model
Biffa waste services company is a waste management plant in the UK. The company provides services that are aimed at eradicating of waste from the environment. These services include waste collection, product recycling, proper disposal and generation of energy through technological advancements (Bocken et al. 2016 p.318). Biffa Company is the largest firm that deals with waste in the UK and have built a strong business reputation as well as a leading role in achieving a circular economy. The company’s main driving force is the urge to protect the environment, manage carbon and energy, and achieving environmental compliance. Biffa Company conducts regular street sweeping and recycles the waste for ecological sustainability. The firm’s commitment was reached upon doing a rate on investment analysis proving waste management an excellent investment to achieve the company’s goals.
Biffa Company recycles glass collected from the streets. Initially, the glass venture was done on a small scale basis, but after proving productive, the company extended its capacity to accommodate processing of more glass waste (Batista et al. 2018 p.423). The firm now takes waste from multiple sources reaching their waste handling capacity. Additionally, Biffa firm sources waste from local recycling companies increasing its superiority and quality of glass recycling. The glass waste is used to produce three main products that can be re-used in the economy. Two different aggregate products are provided which are used in construction sites inland drainage. The other product is sand which has various uses and can be re-used a good number of times. Biffa produces products useful in soil treatment by removing hydrocarbons restoring the quality and value of the soil. These soil treatment products are washed organics and dewatered decanter cake (Batista et al. 2018 p.423). Restoration of soil value improves productivity and ensuring healthy plants that are not harmful to human life once consumed.
Biffa waste company carries out comprehensive street program improving the health status of the cities. The program helps create jobs for the human resource involved. Most of the waste collected is used in landfills. Generally, the landfilling is costly, but the filling of open ground is less expensive and more environmentally friendly. Debris from the streets is mainly made up from waste foods which improve the soil nutrient content reclaiming back the land for productive farming and other economic activities (Batista et al. 2018 p.423). Biffa waste firm uses advanced equipment for waste separation so that harmful elements that could hurt the environment and need careful disposal are taken care of. Another waste which can be used in the manufacturing of new products is as well separated and adopted for use. Comprehensive services are offered according to the customers’ specific needs and according to the amount being transacted. Approximately 99 per cent of street waste is used for landfilling eliminating related costs.
Dewatered organics are used either in anaerobic digestion or used in incineration at low costs. Waste treating improves sustainability in business operations maximizing the value of waste products for re-use in production processes (Lin 2020 p.415). Biffa waste company offers hydrovac slurry dewatering services. Urbanization has led to a spontaneous increase in building and developing land in urban areas. Consequently, hydro excavation highly helps in preparing the soil for development activities to be implemented. Hydro excavation is more reliable, although the products of the events are slurry. The slurry is 60 per cent water and forty per cent solid. The solids have to be disposed of in liquid for comfortable treatment and environmental conservation. Hydrovac trucks are expensive and have to go long distances to get to the dumpsites (Lin 2020 p.417). The firm has instead developed systems where excavation waste gets treated at them without necessarily having to transport the garbage to a safe dumpsite. The on-site sorting helps in preventing the transportation of harmful materials to dumpsites. Toxic byproducts include metals and hydrocarbons, which are environmentally hazardous.
Additionally, hydro excavation reduces the volume of waste taken for landfilling with the useful resources recovered. The resources include sand and stones, which in turn can produce backfill sold to earn independent revenue. Hydro excavation helps in sorting legal complications associated with waste disposal (Lin 2020 p.417). Therefore, wastes disposal solutions reduce landfill costs while creating new sources for revenue.
Biffa, waste management company, play critical role value regeneration which has positively impacted on the economy of the UK. The processes involved in waste management in the firm are a boost to technological advancements. Technology creates efficiency and value for products (Lin 2020, p.422). New products that have existed in the market before have availed them for improving lifestyles and giving a unique taste of laxity yet at reduced costs. The company has managed to create a brand placing its competitiveness on another level. Biffa has developed ethical corporate social responsibility which shows and in turn, given the business a right image in the face of its clients. Creation of jobs and maintenance of friendly environment is part of achievements the company has earned itself (Lin 2020 p.420). Putting of products previously used into re-use reduces pressure on prime resources such as sand and gravel saving on further exploitation of the environment. Biffa Company is leading by example in environmental conservation and resource utilization.
Conclusion
The price and the wealth-building in the economy more preferred in closing the yields in business operation. The inflation continues to affect economic based on the bond yields and secular stagnation effects. The counter cases in the temporal economy and the real ideal GDP builds a good return of long-term investment. Across the board of trend line, the pessimistic potential output (Orange). The attempts of correcting the stagnation of the economy require rising of the inflation issues and creating massive economic correction. The concern about the risks appearance may create the effects of the fiscal side. The argument of financial consideration will be lighting the little percentage in GDP. Annum development of the stagnation economic includes the governing macro-economic issues. Outrank of the business operation of business expounds the theories that explain risks at higher inflation. The employment issue of the stagnant economy is more equitable in the stock market based on the risk analysis formulae. The management must understand the economic problems that may affect the secular financial based on the investment. Therefore, the relationship between the existing theory and the investment concept helps corporate governance to speculate the investment.
Reference List
Batista, L., Bourlakis, M., Liu, Y., Smart, P. and Sohal, A., 2018. Supply chain operations for a circular economy. Production Planning & Control, 29(6), pp.419-424.
Bocken, N.M., De Pauw, I., Bakker, C. and Van Der Grinten, B., 2016. Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, 33(5), pp.308-320
Lin, B.C.A., 2020. Sustainable Growth: A Circular Economy Perspective. Journal of Economic Issues, 54(2), pp.465-471
Shaw, S., Grant, D.B. and Mangan, J., 2020. A supply chain practice-based view of enablers, inhibitors and benefits for environmental supply chain performance measurement. Production Planning & Control, pp.1-15.