Manufacturing has long operated on a linear “take-make-dispose” model, but today a circular approach is emerging as a key driver of business value. Circularity – designing out waste and keeping resources in use, is no longer just a green ideal; it’s becoming a competitive imperative.
From Waste to Value: Coats’ Circular Practices in Action
At Coats, circularity isn’t abstract theory, it’s a hands-on strategy reshaping day-to-day operations. One major focus is turning waste streams into feedstocks through closed-loop systems. For example, Coats has instituted “cardboard recycling loops” with suppliers: cardboard packaging waste from Coats’ facilities is collected and repulped into new cardboard boxes and paper packaging . Instead of paying to dispose of used boxes, Coats uses them again, reducing purchasing costs and waste disposal fees at the same time. The company reports that 80% of its cardboard and 24% of its plastic thread cones now come from recycled materials – a clear sign that reclaimed materials are displacing virgin inputs. This not only cuts costs when virgin material prices rise, but also buffers Coats against supply disruptions by creating an internal recycling supply.
Another practical win is the standardisation and reuse of plastic cones (the supports on which thread is wound). Coats has worked with customers to take back used thread cones, which are then ground into plastic chips and returned to suppliers to be remoulded into new cones or other items . By designing thread supports for recyclability and collecting them after use, Coats closes the loop on plastics that would otherwise become waste. This initiative yields a dual benefit: it reduces raw material needs (and costs) for new plastic parts, and it avoids waste handling expenses. It’s an efficiency gain that also burnishes Coats’ reputation with environmentally conscious clients. In fact, through various packaging tweaks – like eliminating plastic sleeves and bags from thread products – Coats removed over 14 million single-use plastic pieces in one year . Every such measure translates into less waste generated and direct savings on materials and logistics.
Crucially, Coats backs these efforts with data-driven waste tracking and innovation. The company adopted a comprehensive waste categorization (covering 35 waste types) to pinpoint inefficiencies and recovery opportunities . By measuring waste streams in detail, Coats identified where process off-cuts, packaging or obsolete stock were costing money. This insight enabled a 25% reduction in waste (from 2018 baseline) by 2022 – a reduction that saves money and improves operational efficiency. Digital monitoring and analytics guide Coats’ teams in targeting hotspots of waste, whether that’s excess textile fibers in production or surplus inventory. The result is leaner operations that not only reduce environmental impact but also streamline production costs.
Innovation in Threads: Circular Design as a Market Advantage
Circularity at Coats also means reimagining products themselves to create value. A standout example is Coats’ development of EcoCycle, an innovative water-dissolvable thread that makes it far easier to recycle garments at end-of-life. Traditionally, recycling clothing is difficult and costly because various components (fabric, stitching, fasteners) have to be manually separated. EcoCycle thread addresses this by holding a garment together during use, but dissolving away in a hot industrial wash, so the garment can be quickly taken apart and sorted for recycling . By designing thread for disassembly, Coats is helping brands recover valuable textiles that would otherwise be waste. This innovation not only has an environmental upside, but a business one too: it lowers the cost of garment recycling for partners , potentially unlocking new revenues in recycled textiles. Coats is now inviting apparel manufacturers and recyclers to collaborate at the design stage to scale up this solution . In practice, that means Coats gains early access to customers’ product development, a strategic advantage, and strengthens its relationships by co-developing sustainable products.
In addition to dissolvable threads, Coats has introduced lines of thread made from 100% recycled polyester (branded EcoVerde) to meet customer demand for sustainable materials . These threads use fibers from recycled plastic bottles (and in future, potentially from textile waste) to “close the loop” in fashion products. Offering recycled-content thread has helped Coats increase the share of its products made with preferred (sustainable) materials to 30%, up from 25% a year prior . It’s a selling point as apparel brands strive to make garments more circular – Coats can say its threads themselves contribute to that goal. Innovating with circular design is positioning Coats as a supplier of choice for forward-thinking brands, thus driving new business and revenue. In short, sustainability-focused R&D is not a cost center; it’s a source of product differentiation and growth.
Governance, Incentives and Culture Accelerating Change
Behind these practical steps is an equally important enabler: Coats’ governance and culture around sustainability. Dearing notes that “sustainability is an integral part of all decision-making at Coats” . This top-down commitment is reflected in Coats’ governance structures. The company’s Board has a dedicated Sustainability Committee, on which Christopher Dearing serves as committee secretary, reporting on progress and guiding strategy at the highest level . This means circular economy initiatives get regular board-level attention and oversight – a clear signal that they are core to the business agenda, not side projects. Moreover, Coats links its sustainability targets directly to executive incentives. Progress on key environmental goals is tied to management remuneration across a broad range of leaders , ensuring that meeting circularity and climate milestones affects performance reviews and even bonus outcomes. By hard-wiring sustainability into how success is measured, Coats’ leadership has created accountability and urgency for initiatives like waste reduction and material recycling. When the C-suite and board are invested in these outcomes, the entire organisation mobilises to deliver results.
This governance approach has fostered a culture where innovative ideas can thrive from the ground up. Employees know that efficiency improvements or reuse schemes will be taken seriously and resourced. Indeed, many of Coats’ circular wins have come from cross-functional collaboration – engineers, supply chain managers and sustainability experts working together to redesign processes. Supplier and customer relationships are also strengthened by this culture: partners see that Coats is “walking the talk” and are more willing to join in pilots and long-term collaborations. Dearing points out that involving suppliers (for example, in the cone return program or chemical container reuse) has been key to scaling circular solutions beyond Coats’ own factories. By embedding sustainability into its corporate DNA, Coats can move faster and with greater coherence – from boardroom to factory floor – in pursuit of circular economy gains.
Leadership and Ambition Driving Industry-Wide Change
What’s happening at Coats illustrates a broader truth: leadership and ambition are catalysts for systemic change. The textile manufacturing sector faces a massive waste challenge, but companies with bold vision can shift the trajectory. Coats has set ambitious goals, such as achieving net-zero emissions by 2050 and eliminating virgin oil-based materials from its products by 2030 . These targets are audacious – no one yet has a perfect roadmap to 100% circular materials – but that’s precisely the point. As Christopher Dearing suggests, committing to big outcomes even before every solution is known can spur the innovation needed to get there. By declaring a goal like fully circular packaging and products, Coats sends a message to its teams and the market that business-as-usual is off the table. This kind of leadership creates a ripple effect: suppliers invest in new recycling technology to meet Coats’ future needs, R&D teams pursue breakthrough ideas like textile-to-textile recycling, and even competitors take note (and perhaps raise their own ambitions).
Importantly, the willingness to “just start” on circular initiatives, even if imperfect, drives learning and momentum. Dearing’s experience shows that taking the first steps – setting up a pilot take-back program, or launching a first-gen recycled thread – yields insights that pave the way for bigger advances. For instance, through early trials in recycling thread cones and establishing partnerships, Coats built the knowledge and infrastructure that now enable it to recover tons of material and cut waste dramatically. Those early wins also build internal confidence and external credibility, encouraging others to join in. In an industry often accused of foot-dragging on sustainability, this kind of proactive leadership is refreshing. It demonstrates that even legacy manufacturing firms can reinvent themselves with circular economy principles and, in doing so, unlock new value.
Conclusion: Circularity as a Business Value Driver
Circularity is no longer a niche environmental concept for manufacturers – it’s increasingly central to business resilience and value creation. Coats’ journey shows how practical circular practices (from cardboard repulping loops to innovative recyclable threads) translate into cost savings, efficiency gains, and a competitive edge in a changing market. Equally, it underlines that strong governance, board support and aligned incentives are critical to accelerate sustainability outcomes. When sustainability sits at the heart of corporate strategy – championed by leaders like Christopher Dearing – it unleashes creativity at all levels and fosters collaborations that extend a company’s impact well beyond its own walls.
Christopher Dearing will delve deeper into these themes as the opening keynote speaker at the upcoming Sustainable Industry Summer Summit on Circularity. In his session, titled “How Circularity Is Reshaping Business Value,” he will explore questions like how circular initiatives deliver cost savings and competitive edge, and what internal structures enable real progress . (See the event agenda for more details on his talk and other sessions.) Industrial leaders keen to stay ahead of the curve should tune in – and tap into resources like sustainableindustry.co.uk for practical insight on scaling sustainability solutions. As Coats’ experience illustrates, embracing circularity is not just good for the planet, it’s rewriting the rules of success in manufacturing.