Study highlights the strategic importance of the circular economy in the manufacturing and automotive industries

External factors such as regulatory requirements, customer and investor expectations, or technological developments influence the direction of circular economy strategies to varying degrees depending on the country and region. In Germany, the topic is considered less important than in North America or other European countries. Within companies, economic motives dominate: efficiency gains, cost advantages, and improved competitiveness are seen as the primary reasons for implementing circular economy measures. At the same time, it is becoming clear that value creation through the circular economy is increasingly linked to innovation capacity and organization-wide resilience.

When implementing these strategies, many companies focus on established approaches that can be implemented quickly and promise economic benefits. These include, in particular:

• Recycling and repair, which generate cost-saving and easily measurable benefits
• Design adjustments to reduce material consumption and increase recyclability
• Refurbishment and remanufacturing, when reusable components remain economically viable

More innovative strategies, such as fundamentally new usage concepts or alternative product applications, are used less frequently but are increasingly recognized as levers for long-term competitive advantages.

Companies are facing regulatory requirements that pose significant challenges, particularly for those operating internationally. Added to this are operational hurdles along global supply chains, cultural barriers within organizations, and gaps in data availability. The latter, in particular, make it difficult to systematically measure circular performance or demonstrate efficiency gains. Successful companies embed the concept of the circular economy at the highest levels of management. From there, it is gradually integrated into core processes and structures rather than being treated as an isolated measure.

Performance measurement is often based on metrics that are easy to track operationally—such as circular turnover, recyclability, or material efficiency. Broader strategic impact metrics, such as extended product lifespans, have played a lesser role to date. Particularly significant effects are seen in end-of-life management, product design, and raw material procurement. Modern standards and frameworks are gaining importance because they enable comparability and help companies develop circular strategies in a targeted manner.