Adapting the electronics manufacturing industry to global sustainable movements requires significant innovation. While the benefits of a circular economy help the planet and impress eco-friendly consumers, brands face some challenges when making green changes. These are some of the most significant barriers electronic components manufacturers face while implementing circular economy principles and their potential solutions.
Plan for product sustainably
Planned obsolescence is common in numerous industries. Companies stand to make more when consumers have to replace their products frequently, but it’s one of the issues making circular economy principles more critical for tech manufacturers.
Global e-waste doubled to 62 million metric tons between 2010 and 2022. People upgraded their personal and business technologies for new models, leaving older components in landfills. A circular economy would reduce the amount of e-waste in worldwide landfills by making electronic parts last longer.
Manufacturing facilities could collect components previously purchased from partners and melt them into materials for new products. Upcycling them by using the parts that still operate efficiently would also keep them out of landfills.
Optimization is another foundational approach to sustainable electronics manufacturing. Highly efficient production processes generate better products, which is part of making components last longer. When each component works at peak efficiency with optimized manufacturing behind its structure, consumers will get more long-term use from each part.
Part of this strategy requires reinventing facility machinery upkeep. Preventive maintenance reduces the risk of production equipment malfunctioning, which ultimately boosts a company’s bottom line by eliminating consistent shutdowns for repairs. Tech producers will also save money by paying repair fees for parts and labor less often.
Like any industry change, these strategies require some upfront investments. They can be the most significant barriers for manufacturing facilities trying to implement circular economy principles. Electronics developers state that material collection is too costly to start upcycling production practices, along with the lack of value among the collected components.
The key is to remember circular economy changes work toward long-term payoffs. The initial steps for product manufacturing upgrades require initial investments, but the brands committing to those changes will broaden their consumer bases. People prioritizing green businesses will offer supportwith their long-term purchasing power, ultimately making initial investments a small sacrifice in the face of future profitability.
Photo: Sahand Babali
Adjust internal and external company practices
A leadership team can’t implement circular economy principles without every branch being on board. That requires updated internal practices. New policies guide every employee toward greener production goals, but interested industry leaders must invest their time into making these detailed policies.
Company culture changes may seem like a small barrier to making more sustainable tech components, but they’re vital for a brand’s success. Researchers found internal changes mattered more than external factors for businesses adopting circular economy principles. They guide team members while leaders create mitigation strategies for potential upcoming barriers.
Additionally, external practices will shift as green internal policies change the focus of electronic components manufacturing enterprises. If an enterprise wants to eliminate planned obsolescence for its component products, it must partner with suppliers making more durable materials.
Although green tech parts aren’t standard yet, refurbishment and remanufacturing are helpful strategies to keep in mind while seeking new suppliers. If a brand can help a tech firm engage in these strategies by offering product take-back collection services, it would eliminate another concern leaders have when making tech components greener.
Explore industry-wide opportunities
Electronic components manufacturing will become more sustainable as more organizations learn to overcome common challenges when becoming greener. Those implementing circular economy principles can encourage this change to happen faster by leveraging financial benefits for their suppliers.
Closed-loop supply chain partners are more than just a streamlined part of the manufacturing process. They may also create a broader circular economy faster. If a massive electronic components manufacturer announces it’s only working with others prioritizing sustainable initiatives, those already admiring their leadership will take note. They may adopt more circular economy standards to get back in business with that big tech company.
As more corporations go green, the electronics manufacturing world gains potential partners. In the meantime, electronic component enterprises must centralize partnerships with limited sustainable suppliers. The dedication impresses consumers, drives change and streamlines product manufacturing. Fewer materials are necessary to ship components between partners, making businesses greener overnight.
Job creation is another potential challenge for those undertaking a cleaner production approach. Working with fewer suppliers who match a brand’s economic principles means those suppliers will likely have increased production demand. They’ll also need people trained in electronic recycling and refurbishment.
Opening new jobs to optimize the updated production speed takes time, but it’s worth the effort. Companies stand to participate more effectively in circular economies with people who have those skill sets. Research also shows these principles create jobs in numerous industries, although critics mention those jobs potentially being mostly entry- to mid-level positions.
No matter the experience requirements for circular economy jobs in electronics manufacturing, people will still find more employment opportunities with firms dedicated to these green changes. The challenges and opportunities of circular economy principles are especially worth exploring in the tech industry that generates significant e-waste contributing to global pollution.
