Challenges on the way to a circular economy from the perspective of the Austrian manufacturing industry

Using the Austrian manufacturing industry as an example, this study from 2012 analyses the obstacles standing in the way of the transition to a circular economy. The biggest hurdles were a lack of government funding, barriers in product design and problems in designing effective circular supply chains, as well as the high complexity of the transformation process - in other words, mainly external hurdles.

The survey results also show that the biggest drivers for the transformation to a circular economy are market and customer demand, followed by environmental concerns and regulatory pressure. The biggest barriers are the need for financial support from the government, challenges in building an effective circular supply chain, economic challenges due to customer behaviour and barriers to product redesign.

The study emphasises that many of the main barriers are external and cannot be overcome by companies alone. It emphasises that financial incentives and political support are needed to accelerate the transformation. Despite the high level of awareness of the strategic importance of the circular economy, many companies have not yet taken any concrete steps towards implementation.