Resource efficiency becomes the next competitive edge
Today’s global consumption patterns are built on a linear economic model: we take, we make and we dispose. This approach has been the norm, but in a world of finite resources, it is becoming increasingly unsustainable — not only from an environmental perspective but also from a business standpoint.
If you can source materials locally and reduce dependence on vulnerable value chains, you strengthen your resilience. That not only mitigates risk but also creates a significant competitive advantage. Furthermore, it can enable cost savings and reduce the CO₂ footprint per product” Elin, Head of Sustainability for Sweden and the Nordics at Siemens.
Turning challenges into a competitive advantage
A circular mindset delivers dual value — it reinforces both business performance and sustainability impact. Research shows that consumers are willing to pay up to 10% more for sustainably produced products and services — further enhancing competitiveness. And the potential is growing rapidly: Europe’s circular economy is projected to be five times larger by 2040 compared to 2021.
“In the past, resource efficiency has often been overlooked. More companies are now recognizing the potential risks and realizing the need to secure their material flows — for instance, by integrating recycled materials,” Elin continues.
The impact is significant: as much as 45% of global greenhouse gas emissions are linked to material use. This means that circular resource management is not only a resource issue, but a prerequisite for meeting climate targets — and unlocking new opportunities for growth and profitability.
For decision-makers, the shift involves moving from viewing linear dependencies as a risk to seeing circularity as a strategic opportunity. By embedding circular principles, companies can build more resilient value chains.
“For example, by incorporating circularity criteria into your product design and enhancing the resource efficiency of your production processes, you establish a stronger foundation for long-term business resilience.”
Strategies for longer lifecycles and predictive maintenance
Traditionally, products have been designed with performance and cost as the primary focus. In a circular economy, design must also consider longevity, repairability and reuse.
“At Siemens, we actively redesign our products so that they last longer, can be upgraded and repaired and can be recycled more easily. By focusing on sustainable materials, improved performance and longer lifetimes, we create products with a reduced environmental footprint while enabling circular value flows,” says Elin.
Extending a product’s lifetime also depends on predictive maintenance. By leveraging sensors, data analytics and digital twins, it is possible to predict wear and extend equipment lifetime — a key step toward more circular and resource-efficient production systems.
“One challenge in Swedish industry today is that around 60% of all maintenance remains reactive*. There’s enormous untapped potential to adopt a more data-driven, predictive approach — extending asset lifetimes and reducing resource consumption,” Elin adds.
Data-driven decisions for resource-efficient products and production
Circularity begins at the design stage, both in how a product is designed and how production processes are structured. Minimizing waste and optimizing resource use requires data-driven decision-making.
“The circular transition is fundamentally a technological and industrial transformation. Data and digitalization are critical to adapting production, products, and material flows at the pace required,” Elin explains.
By analyzing production data, companies can identify where resources are used most effectively and where improvement opportunities lie.
“To truly achieve resource efficiency, industry must begin asking new types of questions: Where are our largest material losses today — and how can these become new resources? What share of our input materials can be recycled? And what can data from the use-phase teach us about designing products that last longer and circulate more effectively? The stronger the data foundation, the more accurate and sustainable the decisions — and the technology to achieve this already exists,” Elin concludes.
*Source: https://produktion2030.se/projekt/predictive-maintenance-using-advanced-cluster-analysis-paca/