{"id":6031,"date":"2026-02-03T07:00:00","date_gmt":"2026-02-03T06:00:00","guid":{"rendered":"https:\/\/terra-institute.eu\/en\/?p=6031"},"modified":"2025-12-17T14:33:04","modified_gmt":"2025-12-17T13:33:04","slug":"circularity-as-a-cost-and-growth-lever-for-smes","status":"publish","type":"post","link":"https:\/\/terra-institute.eu\/en\/circularity-as-a-cost-and-growth-lever-for-smes\/","title":{"rendered":"Lower costs, higher returns: Circularity as a revenue and efficiency lever for SMEs"},"content":{"rendered":"\n[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;9px|||||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][et_pb_row _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;22px|auto||auto||&#8221; custom_padding=&#8221;1px||15px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||1px|||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<p><strong>Circularity means using materials and products in a way that keeps them in the loop \u2013 through longer use, repair, refurbishment, or recycling. For a resource-poor country like Germany, the circular economy is a question of future security.<\/strong> And for small and medium-sized enterprises (SMEs), it offers, in addition to necessary risk management, a potential economic advantage. Materials such as aluminium are becoming more expensive, certain critical raw materials like neodymium for magnets are subject to extreme uncertainties and price fluctuations, and supply chains are fraught with high risks. Companies that tap into reliable secondary raw material sources and develop circular-ready products reduce their production costs, create new revenue streams, and become more independent.<\/p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||1px|||&#8221; custom_padding=&#8221;18px|||||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<h3>What does circularity mean in concrete terms?<\/h3>\n<p dir=\"auto\">Circularity comprises four pragmatic principles:<\/p>\n<ol>\n<li dir=\"auto\"><strong>Make products usable for longer<\/strong><br \/>through durability, repair, and upgrades.<\/li>\n<li dir=\"auto\"><strong>Keep material flows usable<\/strong><br \/>by using materials in a way that they are identifiable, separable, and recyclable.<\/li>\n<li dir=\"auto\"><strong>Develop take-back and service concepts<\/strong><br \/>such as repair services, leasing models, or \u201cproduct-as-a-service\u201d.<\/li>\n<li dir=\"auto\"><strong>View end-of-life products and waste as a resource<\/strong><br \/>through resale, reuse, or recycling of high-quality components.<\/li>\n<\/ol>\n<p dir=\"auto\">This makes circularity a lever for savings and new business models.<\/p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||1px|||&#8221; custom_padding=&#8221;18px|||||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<h3 dir=\"auto\">Why is this a success factor for SMEs?<\/h3>\n<ul>\n<li dir=\"auto\"><strong>Material costs decrease<\/strong> \u2013 When the circular economy is consistently implemented, a typical German manufacturing SME can realistically expect, depending on the industry and business model, at least a 10% reduction in production costs. In energy-intensive sectors or where material use is high, the savings potential can be even greater.<\/li>\n<li dir=\"auto\"><strong>New revenue models emerge,<\/strong> e.g. second-hand markets, refurbished products, and repair services<\/li>\n<li dir=\"auto\"><strong>Less dependence<\/strong> on volatile raw material prices<\/li>\n<li dir=\"auto\"><strong>Competitive advantages<\/strong> in tenders and with major customers, up to and including preservation of market access in highly regulated areas<\/li>\n<li dir=\"auto\"><strong>Lower waste costs,<\/strong> especially when process costs for handling and wasted value creation are included alongside actual disposal costs<\/li>\n<li dir=\"auto\"><strong>Better ESG ratings<\/strong> <strong>and<\/strong>, consequently, <strong>loan conditions with banks<\/strong><\/li>\n<\/ul>\n<p dir=\"auto\">Circularity is therefore the most cost-effective sustainability strategy because it reduces waste.<\/p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||1px|||&#8221; custom_padding=&#8221;18px|||||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<h3 dir=\"auto\">Key Levers \u2013 With Examples from SMEs<\/h3>\n<h4 dir=\"auto\">Example 1: Retail \u2013 Returns as a Source of Value Instead of a Cost Factor<\/h4>\n<p dir=\"auto\">A household goods retailer (medium-sized, 80 employees) was struggling with rising return costs. Many returned products had previously been disposed of.<\/p>\n<p dir=\"auto\">The company set up a small refurbishment unit:<\/p>\n<ul dir=\"auto\">\n<li class=\"text-start \">Employees clean, inspect, repair and package returns<\/li>\n<li class=\"text-start \">Clear processes and quality standards<\/li>\n<li class=\"text-start \">A dedicated area in the warehouse<\/li>\n<\/ul>\n<p dir=\"auto\"><strong>Results after 12 months:<\/strong><\/p>\n<ul dir=\"auto\">\n<li class=\"text-start \">70% of returns are sold as refurbished<\/li>\n<li class=\"text-start \">Waste volume \u201340%<\/li>\n<li class=\"text-start \">Additional annual revenue in the mid six-figure range<\/li>\n<li class=\"text-start \">Lower disposal costs<\/li>\n<\/ul>\n<p dir=\"auto\">A cost block was turned into a profitable business model.<\/p>\n<h4><\/h4>\n<h4 dir=\"auto\">Example 2: Construction Company \u2013 Reuse Instead of Disposal<\/h4>\n<p dir=\"auto\">A construction company systematically introduces \u201cmaterial passports\u201d for renovation projects. These document which components and materials can be reused or resold during deconstruction.<\/p>\n<p dir=\"auto\">Among the items that can be reused are:<\/p>\n<ul dir=\"auto\">\n<li class=\"text-start \">Doors and windows<\/li>\n<li class=\"text-start \">Metal beams<\/li>\n<li class=\"text-start \">Cable ducts<\/li>\n<li class=\"text-start \">Sanitary ceramics<\/li>\n<li class=\"text-start \">Certain insulation materials<\/li>\n<\/ul>\n<p dir=\"auto\"><strong>Results:<\/strong><\/p>\n<ul dir=\"auto\">\n<li class=\"text-start \">15\u201320% lower material costs<\/li>\n<li class=\"text-start \">Lower disposal costs<\/li>\n<li class=\"text-start \">Sale of reusable components as an additional source of income<\/li>\n<li class=\"text-start \">Perception as an innovative, sustainable construction partner \u2013 new contracts<\/li>\n<\/ul>\n<h4 dir=\"auto\">Example 3: Mechanical Engineering Company \u2013 Spare Parts as a Subscription Model<\/h4>\n<p dir=\"auto\">A mechanical engineering company analyzed frequently recurring repairs of its products and developed a new service offering:<\/p>\n<ul dir=\"auto\">\n<li class=\"text-start \">Replacement and wear parts are supplied via subscription<\/li>\n<li class=\"text-start \">Old parts are taken back and reconditioned (remanufacturing)<\/li>\n<li class=\"text-start \">Customers reduce downtime, the company reduces material usage<\/li>\n<\/ul>\n<p dir=\"auto\"><strong>Benefits:<\/strong><\/p>\n<ul dir=\"auto\">\n<li class=\"text-start \">Predictable, recurring revenues<\/li>\n<li class=\"text-start \">Lower production costs through reconditioning<\/li>\n<li class=\"text-start \">Stronger customer loyalty<\/li>\n<\/ul>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||1px|||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<h3 dir=\"auto\">Conclusion<\/h3>\n<p dir=\"auto\">Circularity means economic resilience and competitiveness. SMEs should not postpone this topic, as raw material and energy prices are volatile and rising, and regulatory and customer pressure is increasing. A circular economy reduces material, energy and disposal costs. It preserves market access and even opens up new business models. It is advisable to identify initial quick wins and gain experience \u2013 only then should the longer-term transformation be tackled with a well-thought-out strategy.<\/p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||1px|||&#8221; custom_padding=&#8221;17px|||||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<h3 dir=\"auto\">Further Article<\/h3>\n<p dir=\"auto\">Basic article:<b> <a href=\"https:\/\/terra-institute.eu\/en\/esg-as-a-success-factor\/\" target=\"_blank\" rel=\"noopener\">ESG as a success factor<\/a><\/b><\/p>[\/et_pb_text][et_pb_text disabled_on=&#8221;on|on|on&#8221; _builder_version=&#8221;4.27.0&#8243; _module_preset=&#8221;default&#8221; disabled=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;]<h3>Teilnehmeranzahl begrenzt!<\/h3>\n<p>Die Pl\u00e4tze sind auf maximal 20 Teilnehmer:innen begrenzt. Dies erm\u00f6glicht uns einen besseren Austausch und auch die M\u00f6glichkeit, auf alle Fragen einzugehen.<\/p>\n<h3>Verbindlichkeit<\/h3>\n<p>F\u00fcr eine bessere Planung ist die Anmeldung verbindlich. Sollte dennoch nach Anmeldung etwas dazwischenkommen und die Teilnahme nicht m\u00f6glich sein, bitten wir um eine schnellstm\u00f6gliche Absage unter <a href=\"mailto:%20a.unger@terra-institute.eu\">a.unger@terra-institute.eu<\/a>.<\/p>\n<h3>Kosten und Transport<\/h3>\n<p>Die Kosten f\u00fcr die zwei Hoff\u00fchrungen und Verk\u00f6stigung werden vom Projekt \u00fcbernommen. Die Fahrtkosten sowie die Organisation der Anfahrt, Abfahrt und Transport zwischen den H\u00f6fen sind von den Teilnehmer:innen selbst zu \u00fcbernehmen. Bei einem JA im Formular teilen wir die Kontaktdaten der Teilnehmer:innen, um Fahrgemeinschaften zu erm\u00f6glichen.<\/p>[\/et_pb_text][et_pb_text disabled_on=&#8221;on|on|on&#8221; module_id=&#8221;anmeldung&#8221; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; disabled=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;]<h3><\/h3>\n<h3>Webinar verpasst?<\/h3>\n<p>Dann schicken Sie uns doch gerne eine Nachricht mit Ihren Fragen an <a href=\"mailto:office@terra-institute.eu\">office@terra-institute.eu<\/a>.<\/p>\n<p>Bei gen\u00fcgend Interessent:innen werden wir das Webinar erneut veranstalten.<\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_2,1_2&#8243; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;22px|auto||auto||&#8221; custom_padding=&#8221;1px||15px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][et_pb_button button_url=&#8221;#anmeldung&#8221; button_text=&#8221;Zur Anmeldung&#8221; disabled_on=&#8221;on|on|on&#8221; _builder_version=&#8221;4.27.0&#8243; _module_preset=&#8221;default&#8221; disabled=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][\/et_pb_button][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||-2px|||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<h3>Author<\/h3>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/terra-institute.eu\/en\/wp-content\/uploads\/2023\/09\/Ivo-Mersiowsky.jpg&#8221; alt=&#8221;Ivo Mersiowsky&#8221; title_text=&#8221;Ivo Mersiowsky&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][\/et_pb_image][et_pb_text disabled_on=&#8221;on|on|on&#8221; _builder_version=&#8221;4.27.0&#8243; _module_preset=&#8221;default&#8221; disabled=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;]<h3>Teilnehmeranzahl begrenzt!<\/h3>\n<p>Die Pl\u00e4tze sind auf maximal 20 Teilnehmer:innen begrenzt. Dies erm\u00f6glicht uns einen besseren Austausch und auch die M\u00f6glichkeit, auf alle Fragen einzugehen.<\/p>\n<h3>Verbindlichkeit<\/h3>\n<p>F\u00fcr eine bessere Planung ist die Anmeldung verbindlich. Sollte dennoch nach Anmeldung etwas dazwischenkommen und die Teilnahme nicht m\u00f6glich sein, bitten wir um eine schnellstm\u00f6gliche Absage unter <a href=\"mailto:%20a.unger@terra-institute.eu\">a.unger@terra-institute.eu<\/a>.<\/p>\n<h3>Kosten und Transport<\/h3>\n<p>Die Kosten f\u00fcr die zwei Hoff\u00fchrungen und Verk\u00f6stigung werden vom Projekt \u00fcbernommen. Die Fahrtkosten sowie die Organisation der Anfahrt, Abfahrt und Transport zwischen den H\u00f6fen sind von den Teilnehmer:innen selbst zu \u00fcbernehmen. Bei einem JA im Formular teilen wir die Kontaktdaten der Teilnehmer:innen, um Fahrgemeinschaften zu erm\u00f6glichen.<\/p>[\/et_pb_text][et_pb_text disabled_on=&#8221;on|on|on&#8221; module_id=&#8221;anmeldung&#8221; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; disabled=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;]<h3><\/h3>\n<h3>Webinar verpasst?<\/h3>\n<p>Dann schicken Sie uns doch gerne eine Nachricht mit Ihren Fragen an <a href=\"mailto:office@terra-institute.eu\">office@terra-institute.eu<\/a>.<\/p>\n<p>Bei gen\u00fcgend Interessent:innen werden wir das Webinar erneut veranstalten.<\/p>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221;][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||1px|||&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;et_body_layout&#8221; sticky_enabled=&#8221;0&#8243;]<p data-ccp-props=\"{&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559683&quot;:0,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335562764&quot;:2,&quot;335562765&quot;:1,&quot;335562766&quot;:4,&quot;335562767&quot;:0,&quot;335562768&quot;:4,&quot;335562769&quot;:0}\"><strong>Ivo Mersiowsky<br \/><\/strong><\/p>\n<p dir=\"auto\">Dr.-Ing. Ivo Mersiowsky is a consultant and coach for sustainability in product management and corporate management. As an environmental engineer with a focus on innovation coaching, he has been working in the field of sustainability management for over 25 years, with positions in the chemical industry, a testing organization and various international consulting firms.<\/p>\n<p dir=\"auto\">Questions? Feel free to reach out by email (<a href=\"mailto:i.mersiowsky@terra-institute.eu\" target=\"_blank\" rel=\"noopener\">i.mersiowsky@terra-institute.eu<\/a>)<\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"<p>Circularity means using materials and products in a way that keeps them in the loop \u2013 through longer use, repair, refurbishment, or recycling. For a resource-poor country like Germany, the circular economy is a question of future security. And for small and medium-sized enterprises (SMEs), it offers, in addition to necessary risk management, a potential [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":6037,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[39],"tags":[45],"class_list":["post-6031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-circular-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Circularity as a Cost and Growth Lever for SMEs<\/title>\n<meta name=\"description\" content=\"Circularity as a growth and efficiency lever: how SMEs cut costs, secure resources and unlock new revenue with circular business models.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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