The Key Benefits For South African Manufacturing SMEs In The Circular Economy

These days, customers, regulators, and governments are more concerned with the environmental impact that businesses have on the world than ever before. The result is more pressure on businesses to incorporate sustainable measures into their processes and practices – from the boardroom to manufacturing, packaging and retail, and beyond.

While this move to a greener approach is applicable to all industries, we would argue that the manufacturing sector has the most dramatic impact on environmental concerns. After all, traditional manufacturing processes contribute to air and water pollution through the toxic gases, waste, and byproducts, wreaking havoc on the environment and accelerating climate change.

By adopting alternative practices, embracing progressive technologies, and exploring the circular economy, South African manufacturers could preserve the planet for generations to come and greatly reduce their costs! 

In fact, we’d argue that the real power lies in the SME manufacturing space – what with how SMEs make up more than 98% of businesses across the country and contribute 39% towards the country’s GDP. It’s entirely possible that these players could have the biggest impact on the economy and environment. 

Here’s a look at these options to see what could make all the difference to how your small-to-medium manufacturing could benefit from going green.

The Circular Economy and Manufacturing

At its root, the circular economy aims to keep products and components in use for as long as possible. Most often they are used to create new resources from discarded materials. The objective behind this type of economy is to reduce waste and minimise the consumption of finite resources. 

From a manufacturing perspective, products are manufactured from primary commodities and finite resources. Typically, once these products stop working, they stop holding any value and consumers are encouraged to replace them regularly. 

In antithesis to this, the circular economy asks manufacturers to create durable and recyclable products, using sustainable and eco-friendly processes. The big question is… why? Why would your small-to-medium manufacturing business make this change?

Well, doing so can improve efficiencies, reduce regulatory risks, increase employment, and create a better reputation in the market. By choosing to build products that are designed for low environmental impact, from how they are manufactured, packaged, and used to how their components can be reused, manufacturers can achieve between 10% – 15% cost savings on direct materials required for production. 

Moreover, these shifts could boost your brand relevance, and future proof your business from the reality of resource scarcity and stricter regulations that cause prices to skyrocket.

Let’s Talk Tech

With the circular economy offering the potential to unlock reduced costs, new jobs, and increased profits, the result will be a radical change in the way that most industries produce. A significant move away from centralised, linear, expensive, and inefficient methods and toward decentralised, intelligent, sustainable, and innovative methods.

Consider this example. Imagine that your manufacturing business opts to use public cloud resources rather than maintaining your own data centres. Just this single step could hugely reduce your carbon emissions, to say nothing of the reduced costs.

Here are three further examples of smart technologies that we believe are trending in the manufacturing space. Regardless of whether your business is an SME or multinational venture, you could embrace these technologies to transform your own business and step into the circular economy.

• 3D Printing

With minimal environmental impact, 3D printing produces replacement parts as needed. By extending a product’s usability as needed, manufacturing and operational costs like energy and storage costs can be reduced.

• Robust Robotics

Robotics can help increase productivity, increase efficiency, decrease waste, and lengthen product lifespans in a variety of applications.

• AI and Automation

By accelerating the creation of environmentally friendly product designs and operational procedures, AI and automation can help the manufacturing sector make the transition to the circular economy.

There’s A Huge Difference 

It’s all good and well to talk about the circular economy and how advanced technologies can turn your business into a savvy operation that doesn’t damage the environment. A business capable of doing better business – which is both more financially and environmentally rewarding.

But just because there is transformation to be embraced and rewards to be reaped doesn’t make a bit of difference if you are unable to plot your roadmap forward. 

There’s no denying that the future of manufacturing is linked with digitisation, however without the proper back-up and support it’s hard to imagine how your business can participate.

At Huge Connect we have prioritised support as an essential part of our offering. We have ensured that we’re not only able to help businesses with their connectivity and telecommunications strategies, but also have the capacity to provide support and work with you to make this journey a reality. To make these savings and efficiencies your new normal. 

Connect with us and let us help you today.