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Switching to a circular economy means breaking out of the price spiral

Ecology and economy go well together. Sustainability and economic efficiency are not contradictions.
I have always said that repairing instead of throwing away is not only good for the conscience, but also pays off financially. And especially in the current situation: raw material prices are going through the roof everywhere. Aluminium, steel, gas, transport: everything is getting more expensive.

It affects us all

Everyone feels that, of course. Not only in terms of energy, i.e. petrol and gas prices. But also everywhere where I produce something, i.e. where I use raw materials. At some point I have to pass on my higher costs to the customers, to the consumers. We are also in the middle of this right now and would actually have to increase the prices for our load securing products. We wouldn't like to do that, because our customers in the logistics industry are already suffering extremely from the high fuel prices at the moment.

Circular economy versus price spiral

On the other hand, high raw material prices mean that repairing has never been more profitable: Repairing has never been more profitable than it is today. I can make a very simple calculation: If I have 50 per cent raw material costs for a new product and the price of aluminium goes up by 50 per cent, then I have to increase the price by 25 per cent. If I repair a bar with significantly less raw material input, then my costs and therefore my price will also increase significantly less.

Here, the current situation clearly plays into the hands of sustainability: Sustainability is more economical than new production. Raw material prices have much less impact on a circular economy.

Sustainability is the topic of the future

Will anything change in the near future? I don't think so: demand will remain high and raw materials will remain scarce. Even if economic power struggles may play a role here and there. If, for example, China takes coal-fired power plants off the grid, it is probably not only to reduce its CO2 emissions. But also to demonstrate where the lights go out when China switches off the power.

Today, it makes more sense than ever to focus on sustainable management.

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