Resource scarcity impacts 91% of industrial businesses, highlighting circularity needs
Press Release by ABB Wed 31 Jan 2024
A recent report from ABB Motion titled ‘Circularity: No Time to Waste’ unveiled that 91% of industrial businesses are affected by resource scarcity. This often leads to increased costs, supply chain disruptions, and production slowdowns.
Significant shifts towards circularity initiatives are happening as a result, with two-thirds of businesses planning to boost their investment in such efforts over the next three years.
The Drive Towards Circularity
The scarcity of raw materials (37%), energy (34%), labor (32%), and electronic components (26%) has been particularly challenging for businesses.
Despite energy being a scarce resource, it is also reported as the biggest source of waste by two-fifths of the businesses surveyed, underscoring the urgent need for enhanced energy efficiency.
Energy efficiency is a key factor in achieving Net Zero targets, according to the International Energy Agency (IEA).
Most respondents view the circular economy as a driver of innovation and competitiveness, advocating for more supportive regulations and government assistance in adopting circular business models.
Tarak Mehta, President of ABB Motion, said: “Embracing circularity is not only essential for safeguarding our environment but also for enhancing business resilience.”
The Barriers of Circularity
The global survey, which gathered insights from 3,304 industrial decision-makers across various sectors and countries, also highlighted obstacles to adopting circularity.
A lack of a standardised definition of ‘circularity’ and slow adoption of key practices were among the challenges cited.
Yet, businesses that view circularity as a company-wide responsibility report significant improvements in energy consumption, use of recycled materials, and carbon emissions.
Despite the hurdles, investing in circularity has led to notable benefits, including waste reduction and energy efficiency improvements.
Tarak Mehta urged for a holistic approach, incorporating new technologies and collaborations to overcome the challenges and fully realise the benefits of circularity.