The future marketplace is circular
By Jared Goldman, UNC Math and Computer Science student
Most industries operate using a “take-make-dispose” model, which is our current linear economy. This means companies use raw, pre-consumer materials to make stuff (consumer product, building, packaging, etc.), which is destined for a landfill. Instead of wasting those limited raw materials after manufacturing or consumption, why not redistribute and reuse them among different companies and industries in the manufacturing processes? This is the concept of a materials marketplace in a circular economy.
Materials marketplaces, pioneered by the United States Business Council for Sustainable Development, are online platforms that facilitate company-to-company industrial reuse. They effectively identify uses for waste generated by one industry and facilitate its redistribution among many other businesses. This model generates value for all parties involved by allowing waste from one industry to be purchased and used as input material for another. For example, a textile manufacturer may discard scrap or miscut cloth during the natural course of work, incurring waste and value loss. However, a materials marketplace could create a connection between the textile manufacturer and a furniture maker. This connection would allow the excess cloth to generate income for the textile manufacturer while giving the furniture maker an opportunity to receive discounted raw materials, generating value for all parties involved.
There are already several promising implementations of this platform operating across the US including in Tennessee, Michigan, Ohio, Washington, and Texas. For example, the Tennessee Materials Marketplace reported $215,000 of value creation, and 5,600,000 lbs of materials diverted since their foundation in 2017. Not only has it been a boon for local industry, but it has attracted international businesses to Tennessee. Materials marketplaces are inherently regional as they are composed of transactions between nearby businesses; in order for this system to be adopted across the entire US, it is necessary to start new marketplaces in strategic areas.
The Research Triangle may be a prime location for a future materials marketplace. The Triangle is home to a wide variety of industries including but not limited to chemical manufacturers, agriculture tech, advanced manufacturing, and clean tech. This diversity within technically sophisticated manufacturing fields makes the Triangle an excellent location for a future materials marketplace as the marketplace would reveal countless underutilized instances of cross-industry collaboration. These previously untapped connections would generate revenue for industries and divert millions of pounds of waste from landfills.
Materials marketplaces are tried and true systems for generating economic value and reducing pollution in industrialized areas. They have shown promise throughout the United States from Texas to Tennessee, creating value and eliminating waste for businesses and the globe. If North Carolina adopted a materials marketplace in the Triangle, it would surely increase the well being of existing companies while encouraging future investments in the region.
