Circular Supply Chains in Manufacturing: From Ambition to Execution

Abstract

Manufacturing executives increasingly recognize circularity as crucial for profitable growth strategies, yet their supply chain capabilities are preventing them from reaping expected benefits. A global survey of 491 executives across 10 manufacturing- centric industries reveals that 79% of respondents consider circularity crucial for their business today, yet only 20% consider their circular supply chain capabilities fit for purpose. Additionally, 95% of executives indicate circularity will be important within three years, with over two- thirds rating it as "very important." Eighty percent of respondents expect circular- revenue growth to exceed company averages, while 70% anticipate higher margin growth from circular activities than from linear ones. These findings highlight the urgency for companies to close this execution gap and scale circular operations that drive growth, resilience, and profitability. This paper examines barriers to circular supply chain implementation and identifies strategic approaches adopted by leading companies to overcome these challenges.