The Circular Economy

Remanufacturing 101: Reviving parts, reclaiming value

The remanufacturing market unlocks opportunity across sectors for higher margins, affordability, and supply chain resilience. Remanufacturing, the process of restoring used parts to give them a second life, has propelled into the spotlight in recent years by attempts to mitigate supply chain shortages, reach new customers through affordability, and search for high-margin alternatives for parts. Both independent remanufacturing companies and remanufacturing arms within OEMs have proved essential for efficiently restoring parts and creating a way to lower expenses while making operations more efficient. These players provide value across multiple industries, from the well-established space in the automotive sector to more emergent opportunities across sectors such as medical devices and electronics. All of these sectors can benefit from reduced dependence on raw materials, extended product life cycles, and more. But remanufacturing is an inherently complex process, and the industry faces unique challenges. For example, remanufacturers grapple with the unpredictable availability, quantity, and quality of incoming used parts (referred to as “core”), complex pricing due to the volume and long tail of SKUs, and a high volume of unstructured, text-based data generated by product warranty claims. What is remanufacturing? Remanufacturing is the process of restoring core to give it an entirely new life. The core, the starting point for the remanufacturing process, is typically a high-value part that requires technical expertise to be restored to its original function. Within the automotive and industrials industry, parts that can be remanufactured include engines, transmissions, hydraulic components (such as bucket lifters), and drivetrain components (such as clutches and axels), as well as turbochargers and superchargers. Historically, the automotive and industrial equipment industries have had the most use cases for remanufacturing, but a growing number of use cases are emerging in industries such as medical devices, furniture, electronics, and aircraft components. The remanufacturing process typically involves seven […]

Sustainability Outlook 2025: Six tips for manufacturers

www.thinkstep-anz.com From February issue NZ Manufacturer magazine Sustainability is no longer a “nice-to-have”—it’s a must-have. For New Zealand manufacturers, 2025 will bring new challenges and exciting opportunities. As the world grapples with climate change, resource scarcity, and shifting regulations, businesses that embrace sustainability will not only keep up but thrive. To stay competitive, manufacturers need to navigate changes in climate adaptation, the circular economy, transparency, and stakeholder expectations. It’s about planning ahead, staying flexible, and taking action. Here are six practical tips from thinkstep-anz’s sustainability experts to help you lead the way in 2025. Stay financially, environmentally and socially sustainable 2025 is expected to bring continued disruption and uncertainty on the global stage. Political and economic turbulence may distract some industries from their sustainability goals. However, maintaining focus on long-term objectives is critical. “Succeeding sustainably means being financially sustainable as well as environmentally and socially,” explains Emily Townsend, Services Director at thinkstep-anz. For manufacturers, this means building resilience by investing in sustainable practices that match up with stakeholder priorities and market expectations. Even if external pressures temporarily lessen, pushing forward with sustainability can pay dividends in the long run. Your Action: Review your sustainability strategy to ensure it balances environmental goals with financial and social resilience. Focus on initiatives that will have long-term benefits for your business and stakeholders. Prepare for the circular economy to go mainstream The circular economy is no longer a niche concept. In 2025, manufacturers exporting to the EU will face increasing requirements to quantify and communicate the circularity of their products. Aligning with standards like ISO 59020 and incorporating circularity metrics into Environmental Product Declarations (EPDs) will become essential to maintaining market access. “We’ll see the circular economy go mainstream,” predicts Jim Goddin, Head of Circular Economy at thinkstep-anz. This trend is also gaining traction […]

How manufacturers can prepare for the ESPR

www.thinkstep-anz.com Image by Dinh Khoi Nguyen from Pixabay. As global sustainability regulations evolve, New Zealand manufacturers must stay ahead of the curve to maintain their competitive edge, especially with upcoming policies like the European Union’s Ecodesign for Sustainable Products Regulation (ESPR). But what is the ESPR, and how can manufacturers in New Zealand prepare for it? What is the ESPR? The ESPR is a new EU policy aimed at making products more sustainable and circular throughout their lifecycle, supporting the EU’s 2050 climate goals. The ESPR applies to products sold within the EU, setting specific sustainability requirements for design, use and disposal. It applies to most products sold in the EU, except for some like food and medicines. Non-compliant products may face fines or bans. Although it took effect in July 2024, the detailed rules will be developed over the next year. The regulation aims to make products more durable, reusable, repairable, and recyclable, while banning the destruction of unsold goods like electronics and textiles. A digital product passport will also be required, giving consumers direct access to sustainability data and exposing brands to greenwashing claims under the Green Claims Directive. Why should New Zealand manufacturers pay attention to ESPR? For manufacturers exporting to the EU or intend to: Failure to prepare for the regulations could result in loss of market access, fines, or even prosecution. Your products will face stricter comparisons on sustainability and circularity, which could impact your market share positively or negatively. Even if your business doesn’t currently export to the EU, the trends set by the ESPR are likely to influence regulations and purchasing decisions in other markets. As supply chains globalise, multinational corporations may enforce ESPR-style standards on all their suppliers, no matter where they are located. With more sustainability and […]

Ten tips to make your business case for sustainability stack up

This information is based on a guide we wrote with the Sustainable Business Council and Kaitiaki Collective. It’s a situation we know many manufacturers face. You want to make your business more sustainable. (Bravo!) You can see the many benefits of manufacturing products that reuse resources, avoid modern slavery and create fewer environmental impacts. But – here’s the kicker – you’re struggling to get the business case for making these changes ‘over the line’ with your accountant or finance team. These ten tips will help you. Tip 1. See becoming more sustainable as an investment Sustainable businesses are excellent businesses. They create value in the short and long terms – economically, environmentally and socially. Treat your sustainability programme as an investment and manage it as one. Tip 2. Identify your stakeholders Consider the many people who have a ‘stake’ in your business succeeding sustainably. You will naturally think of your investors, customers, suppliers, team, local community and regulators. Think longer term and wider too. Include the environment and people who will live many years in the future. Tip 3. Confirm where to focus with a materiality assessment Your business case needs to reflect the views of all these stakeholders and your business too. Start with a ‘materiality assessment’. It’s a practical way, using interviews and surveys, to home in on the sustainability activities that your stakeholders and business care about and to prioritise the ones that matter most. A materiality assessment takes a broad view of sustainability and covers environmental, social and economic topics. Include your top priority topics in your business case. Tip 4. Understand who you need to convince Who do you need to influence to get your business case over the line? What are they interested in? What are they concerned about? Who else has their ear? […]

Systems thinking and sustainable manufacturing

Remember the moment your flatpack furniture finally took shape (with no pieces missing and your relationships intact)? The last piece slotted in because you got the ‘system’ right. Assorted pieces came together, in the right way, to make a useful item of furniture that was ‘more than the sum of its parts’. Sustainability is about systems too. Understanding the relationships between a strong bottom line, a flourishing environment and thriving people and communities will help you make your manufacturing business more sustainable. In fact, you can’t have a healthy business if you don’t attend to all parts of the system. In this article, we look at systems in your manufacturing business. Drawing on examples from our 2023 articles, we show the opportunities these systems offer to become more sustainable. But first, some background. Systems in sustainability The United Nations’ 17 Sustainable Development Goals are a good place to start. They highlight the social, economic and environmental systems that make up our world, plus the links between them. These systems reinforce one another. Some systems are virtuous. Get one thing right and we fix others too. For example, if we consume and produce responsibly (SDG12), we reduce carbon emissions (SDG 13) and modern slavery (positive impacts on social SDGs 1, 5 and 8). Vicious cycles are possible too. If we plant soybeans to create renewable bio-diesel (SDG 7), we risk crowding out native plants (SDG15). Systems in manufacturing As a manufacturer you’re familiar with ‘systems thinking’, even if you don’t call it this. That’s because your business is a system. For example, when raw materials are unavailable, your production line slows down. You have to re-plan your team’s rosters, your production run, marketing schedule, deliveries and cashflow. Everything’s linked. Here are some other examples of systems in your business and what […]

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NZ-EU trade agreement is great news for sustainability

It’s been a long time coming! In July, New Zealand signed a free trade agreement (FTA) with the European Union. Good news for manufacturers too. New Zealand’s exports of goods to its fourth largest trading partner were worth NZD4.68b in 2022. These goods included many manufactured products – machinery, medical appliances, food products, plastics, aluminium and others. More than 91% of New Zealand’s trade into the EU will enter duty-free when the FTA comes into force (expected to be in the first half of 2024). Many goods, including some manufactured products, will have no tariffs at all from this date. This means many millions of dollars of tariff savings each year on exports to the EU. After seven years, when the agreement is fully in place, 97% of current trade will enter the EU duty-free. How the new FTA promotes sustainability The FTA will make trade more sustainable and create opportunities for businesses that deliver more sustainable products. The agreement is the first FTA built around the EU’s ’Together for Green and Just Growth’ approach to trade and sustainable development. It contains ambitious sustainable trade outcomes in many areas. Environmental outcomes include addressing climate change and subsidies on fossil fuel. Social outcomes include promoting labour rights and women’s economic empowerment. The upside for manufacturers – and some warnings The FTA will have a big impact on trade between New Zealand and the EU. The potential upside for local manufacturers is significant: easier access to one of the world’s most lucrative trading blocs; lower costs for materials imported from the EU. However, the FTA comes with warnings too. Firstly, local manufacturers will be competing with EU manufacturers who may have been making their products more sustainable for some years. As customers here and in the EU prioritise ‘responsible purchasing’, make sure […]

Using single-use packaging in your business – read on

– Natalie Martin, 3R Group Materials Innovation Manager Rightly or wrongly, single-use plastic packaging gets the lion’s share of attention in terms of sustainability and waste reduction. While much of this is focused on consumer goods, it’s far from a problem faced exclusively by retailers. Single-use plastic packaging is so pervasive throughout supply chains that just about all industry members deal with it in some way or form. As a result, they will all be affected by regulations aimed at reducing plastic waste, increasing recyclability and getting an industry-funded, regulated product stewardship scheme off the ground. In July 2020 single-use plastic packaging was declared a priority product under the Waste Minimisation Act 2008. This means it’s one of the six product categories that must have regulated product stewardship schemes established. Product stewardship sees scheme members contribute towards the collection of their products at the end of life so they can be reused, recycled or properly disposed of. Why single-use plastic packaging? This product category is by far the widest ranging of those declared priority products, covering thousands of products. Plastic also isn’t simply ‘plastic’ but is split into seven different types depending on its chemical makeup. That makes recycling it, or even establishing collection systems much more complicated. Its negative environmental impacts when littered are well documented and are most frequently in the public eye. Despite this, single-use plastic packaging has an important role to play in reducing waste by keeping food fresh and safe and preventing goods from being damaged. It’s low weight and durability means it can also offer a lower carbon footprint than other materials when it comes to transport. In line with circular economy principles, the key is to ensure its use is minimised, that it’s used as effectively as possible and then recovered and recycled. […]

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Circular economy: so much more than recycling!

Article: Part one The circle has been an important symbol since early times. To many ancient Eastern and Western civilisations, it represented unity, balance and stability. Fast forward to 2023 and the circle is the most talked about shape in sustainability. Why? Because it’s time to get serious about the circular economy and the business, environmental and social benefits it offers. What is ‘circular economy’? Circular economy (CE) is an economic system that can help your manufacturing business reduce risks and costs, become more resilient and build your brand. It can also help you identify new income streams. CE decouples using resources from economic growth. It recognises that the ‘linear’ economic system we use to produce and consume goods and services – ‘take-make-dispose’ – cannot go on forever. As manufacturers, you know that the resources you use are finite (‘take’). You may be facing shortages or skyrocketing prices, particularly with critical materials like lithium. Many of you will be looking for a more sustainable way to manufacture your product (‘make’). You may be concerned about what happens when consumers dispose of your product (‘dispose’). Are you contributing to landfilled waste? Could you be liable? Enter circular economy and solutions to these problems. Circular economy is based on three principles Principle 1: keep products and materials in use Circulating products and materials means keeping them in use at their highest value. It avoids the costs of extracting and creating materials, and of disposing of waste. A circular product is one that consumers can use for as long as possible (e.g. it is easy to repair). When the product wears out, its parts can be reused, or the product remanufactured (remade). At the end of the product’s life, its raw materials can be fully recycled. Principle 2: design out waste and pollution […]

Regulated product stewardship driving transition to a circular economy

By Trevor Tutt – GM Innovation, 3R Group Something which will affect almost all New Zealand businesses has mostly flown under the radar since it was announced during the covid pandemic. A swath of products are set to fall under regulated product stewardship for the first time in New Zealand after they were announced as priority products in July 2020. This means, for the first time in Aotearoa New Zealand, regulated product stewardship schemes are being established for tyres, electronic waste, single-use plastic packaging, synthetic refrigerant gases, agricultural plastics, and agrichemicals. So, if you rely on refrigeration, transport, electronics, or plastic packaging for your goods, you may be affected. It’s a big range of products, with more likely to be announced following government consultation on ways to accelerate product stewardship in new waste legislation. What is regulated stewardship? Product stewardship sees scheme members contribute towards the collection of their products at the end of life so they can be reused, recycled or properly disposed of. This usually means a stewardship fee is charged at the point of manufacture or import and is used by a scheme to achieve better environmental outcomes. The pay-off is improved environmental performance and brand reputation, as well as reduced risk from environmental harm. New Zealand has several voluntary stewardship schemes where participation is just as the name suggests – voluntary. These can suffer from limitations due to insufficient data and resources, and free riders – those who don’t contribute but whose products are stewarded through the scheme. Regulated stewardship sees all of industry required to participate. This provides a level playing field with no free riders. Schemes are therefore better resourced financially and through industry support such as knowledge sharing and collaboration. Data capture is also greatly improved. Regulated schemes are better equipped to reduce […]

Where to for sustainability in an economic downturn?

-Dr. Barbara Nebel, CEO, thinkstep-anz Is sustainability a ‘fair weather friend’ in your manufacturing business? Do you see it as something to cut back when recession calls? If so, you’re missing a business opportunity. Building a more environmentally and socially sustainable business can make your business more efficient and resilient and help you weather the storms ahead. The New Zealand government is forecasting a recession in 2023. This is difficult news for manufacturers already challenged by creaky supply chains and a tight market for skills. Make the most of the many opportunities sustainability offers. Business benefit: reduce your costs Understand your environmental impacts – and reduce them Everything that goes into making your product has an environmental footprint – and a dollar cost. Start by understanding your footprint. A Product Carbon Footprint study measures the carbon your products generate. A Life Cycle Assessment (LCA) considers other impacts too, including the water you use and the waste you generate. Food manufacturer Comvita’s LCA NZ Manufacturer October 2022 by Media Hawkes Bay Limited – Issuu will help the business understand the environmental impacts of its ‘honey in a pot’, from growing the mānuka forests the bees feed on to disposing of the honey’s empty packaging. Armed with information about your environmental impacts, look at whether you can cut some costs. Can you reduce the amount of energy you use? Use raw materials more efficiently? Cut the waste you generate and the costs of disposing of it? The beauty of LCA is that it shows trade-offs. It will help you understand how tweaking one aspect of your product (e.g. the energy you use) affects other aspects (e.g the waste you generate). Buy responsibly Purchasing goods and services produced in environmentally and socially responsible ways can save you money. For example, buying from local […]

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