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Manufacturing executives see value in circularity, but face supply chain challenges

Source Decision Insights Record Published November 11, 2025 Companies 1
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2nd article in the last 90 days, one of 2 articles referencing Bain & Company. Previous coverage: 79% of manufacturing executives recognize circularity's value, yet only 20% have effective supply chains (Nov 2025).

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Manufacturing executives increasingly prioritize circularity in their growth strategies, according to a report from Bain & Company, the World Economic Forum, and the University of Cambridge. Conducted among 491 executives across ten industries, the study found that 79% view circularity as essential, yet only 20% consider their supply chain capabilities adequate.

This execution gap highlights the opportunities for companies to enhance circular operations, which are linked to growth, resilience, and profitability. Nearly all respondents (95%) anticipate circularity's significance will grow within three years, with over two-thirds rating it as very important.

Additionally, 80% of executives predict that revenue growth from circular initiatives will surpass average company rates, while 70% expect higher margins from these activities compared to traditional linear approaches. Xavier Houot, a partner at Bain & Company, noted, “The question is no longer whether circularity matters but how it can be implemented at scale,” emphasizing the need for businesses to integrate circularity into their core strategies.

The report identifies five categories of barriers preventing the scaling of circular supply chains, which include challenges in operations and logistics, profitability concerns, inadequate technology and data infrastructure, organizational resistance, and regulatory issues.

To address these barriers, the report recommends three strategic steps for companies looking to scale circular supply chains: setting clear priorities on products and customer segments, designing hybrid supply chains that integrate linear and circular models, and activating key enablers such as technology, culture, finance, and favorable policies. Hernán Sáenz, a senior partner at Bain, concluded that with the right focus and design, businesses can leverage circularity as a source of growth and resilience.

Press release, provided by Cision on behalf of Bain & Company. Read the original.

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