From linear to circular manufacturing business models

From linear to circular manufacturing business models 1.1 Background and motivation Since the industrial revolution, manufacturing organisations have been developing better business models and strategies to enhance what it has traditionally been considered their primary objectives of increasing economic profit and resources throughput. However, the last two decades have seen a rise in the awareness of the impact that current manufacturing models have on the environment and society in general Thus, the traditional manufacturing paradigm, which has been dominated by a linear business model, has now been increasingly challenged by governments and societies. In this linear model, raw materials are extracted, transported to manufacturing sites and processed into a diverse range of products. These products are then shipped to retailers, sold to customers, used, and ultimately discharged and replaced by other products. This business model, however, represents an unsustainable approach to manufacturing and consumption of goods as it is argued it treats nature as an industry, which leads to global negative impacts such as CO 2 emissions, global warming, scarcity of and permanent damage of natural and non-renewable resources, pollution of soil and water, etc. These negative environmental effects, derived from the linearity of current manufacturing business models, have made organisations in this industry to face pressures related not only to the compliance with environmental regulations but also to challenges of price volatility and supply risks due to increasing resource scarcity