Exploring Circular Economy Practices in the Metalworking Sector : Insights from Small and Medium-Sized Enterprises

Due to environmental pressures and limited raw material availability, the adoption of resource-efficient approaches is becoming increasingly important in the metalworking sector. This thesis focuses on tungsten carbide metal cutting tools, which present significant challenges for circular transitions owing to their critical material composition and high performance demands. The main objective is to identify practices, frameworks, and digital solutions that support a shift from linear to circular models in metalworking, with particular attention to traceability, collaboration, and lifecycle management. The research design encompasses interviews, workshops, and on-site observations conducted with Swedish small and medium-sized enterprises in collaboration with a global tool manufacturer. By integrating these empirical insights with theoretical perspectives on circular economy, the study explores how a dynamic QR-code system can facilitate real-time data exchange, enhance reconditioning processes, and foster shared accountability. The analysis highlights frequent inefficiencies in material handling, limited communication across the supply chain, and fragmented decision-making procedures, all of which contribute to resource wastage and less circular production systems. Key findings included several important points. First, Structured traceability solutions enhanced coordination, ensuring that worn tools were retrieved or remanufactured in a timely manner. Second, holistic production system thinking helps companies align their strategic aims with everyday shop-floor practices, thus bridging the gap between sustainability goals and operational realities. Finally, robust stakeholder engagement—spanning designers, operators, and refurbishing partners—proves vital for establishing a more efficient, digitally integrated network of tool users. It can be concluded that combining collaborative frameworks, digital traceability, and system-wide decision-making offers a path for the metalworks sector to remain competitive while significantly reducing its environmental footprint. By integrating these measures into existing workflows, SMEs and larger enterprises can enhance resource utilization, extend tool lifespans, and improve their sustainability in an evolving global marketplace.