• Circular economy can reduce manufacturing waste by up to 65% according to Monash University research.
• Victoria’s manufacturing sector is working with Monash Business School to develop sustainable strategies, focussed on resource efficiency and waste reduction.

Monash University researchers have found that businesses that adopt circular economy (CE) practices can reduce waste by up to 65%.

Australia’s manufacturing sector produces 13 million tonnes of waste each year. Victoria’s industry is 39% of that. In southeast Melbourne, manufacturing waste is 5,00,000 tonnes a year.

To address this waste challenge, Victoria's manufacturing industry has partnered with Monash Business School’s Department of Management. They aim to develop and implement strategies that improve resource efficiency, reduce waste and reduce the environmental impact of production and consumption through CE principles.

As part of a three-year initiative led by Professor Amrik Sohal, a team of researchers worked with manufacturers in various sectors – plastics, textiles, general engineering and food – along with industry associations and local government representatives.

They focused on raising awareness, building capacity and supporting the transition to CE practices. The research team interviewed 25 CE businesses to identify good practices and then shared these through workshops and seminars tailored for the manufacturing industry.

A post-workshop survey found that participants’ attitudes and behaviour changed once they understood the economic and cost benefits of CE practices. Jardan, a high-end Australian furniture business and one of the businesses involved in the study, reduced their manufacturing waste by 65% after implementing CE strategies. Jardan has committed to sustainability throughout the lifecycle of their products by sourcing over 75% of their materials from Australian suppliers, designing for longevity and reducing energy consumption by 17%.

Professor Sohal used Jardan as an example of what can be achieved when CE practices are adopted. “CE is about optimising resource use, based on the idea that our economic system already has enough resources. The aim is to improve efficiency, reduce our reliance on new resource extraction and minimise waste and extend the life of materials.”

Based on the research findings the researchers recommend:

• Incorporate Circularity into Product Design: Use alternative or recycled materials in the design phase.
• Take a Systems Approach: Circularise the whole supply chain.
• Ensure Financial Viability: Have a business model that supports the financials of CE.
• Be Transparent: Be honest and authentic about your CE initiatives.
• Communicate Value: Help stakeholders see the value in their role in CE.
• Join the Network: Connect with other organisations to share good practice and CE projects.

These are the actions businesses can take to reduce waste and create a more sustainable manufacturing.

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Source: Monash University