Circularity trends in the Dutch manufacturing industry

Good design enables circular design

First we see that design driven companies – like Bugaboo and Ahrend  – have implemented circular strategies in their design approach, enabling easy repair and multifunctional use.

Bugaboo International is a Dutch design company that develops and produces strollers and supportive products. Everything about Bugaboo strollers is replaceable so they last as long as possible and can be adapted to the user’s taste.

Ahrend is an international leader in office furniture. The modular design allows components to be removed or replaced, which facilitates reuse and saves natural resources. They also offer refurbishment, remanufacture, or repurpose services.

Telecommunication company KPN works together with their suppliers on redesign of modems, servers and hardware that use less critical materials and can be easily recycled. Startups like Fairphone have the ability to design products from zero, with  responsible and ethical materials.

Re-manufacturing pays off

Another trend we see is re-manufacturing. Manufacturers, especially in capital equipment, refurbish devices to create a new use cycle and maximize life-time value.

Philips is committed to offering a trade-in on all medical equipment by 2025. Philips has two remanufacturing plants for medical devices. They refurbish devices or reuse parts to create a new use cycle and maximize life-time value.

Lely involved their worldwide franchise network to create certified refurbishment business for their milking robots. Currently about 10% of the robots sold is pre-owned and this percentage is expected to grow to 30%. Remanufacturing extends the lifetime with an additional 5-7 years.

Remanufacturing also offers opportunities for companies up or down the supply chain. Gearbox manufacturer SEW Eurodrive has turned their inefficient repair department into a successful refurbishment service. Repair company Revamo offers their specialist coating to refurbish or upgrade products. They also offer coatings to increase lifetime of new products.

Specialist remanufacturing companies enter the market. In 2020 Alec opened a new plant in Germany to perform high-quality remanufacturing of electronic components, close to the automotive industry.

Problems with delivery of materials and components due to COVID-19 and consequent higher prizes have raised interest for upgrades and refurbishment of machinery and other equipment.

Circularity influences business models (and vice versa)

In a circular economy, a shift from “ownership” to “use” can be attractive: a model in which the user no longer buys the product but pays for the solution. Servitisation stimulates companies to optimize maintenance and prolong product lifetime. Smart monitoring and redesign can help to reduce operational costs.

Swapfiets offers a subscription model for city bikes in 9 European countries. For a fixed price per month, you get a Swapfiets bicycle with the guarantee your bicycle always works. Swapfiets created bike passports to monitor every piece of material in the supply, from chain to saddle. This data was used in the redesign of their bikes enabling longer lifespans and less repair.

Mitsubishi Elevator Europe offers the use of elevators instead of ownership with M-Use®. The customer closes a contract based on the expected performance. Sensors enable remote monitoring and simplify maintenance and repair. For the elevators of Mitsubishi this resulted in extremely low operating costs.