The Circular Economy and Construction: A Structural Engineer’s Perspective on Industry Transformation
By James Morton
The UK construction industry stands at a crucial juncture. Environment Secretary Steve Reed’s recent speech on the circular economy signals a decisive shift in how we, as engineers, designers, and builders, must approach materials, design, and resource management. With construction responsible for 62% of the UK’s total waste and a substantial proportion of carbon emissions, the push towards circularity is not just an environmental necessity—it is an economic and ethical imperative.
The Circular Economy in Construction: Where Are We Now?
While the concept of a circular economy is not new, its application in construction remains inconsistent. Some notable efforts are already underway, demonstrating its feasibility and benefits. Adaptive reuse and retrofit projects have gained traction, with many older buildings being repurposed rather than demolished. Office-to-residential conversions and the repurposing of industrial sites into mixed-use developments have become more common, significantly reducing embodied carbon and preserving valuable materials.
Material recovery and reuse are also increasing. Companies like Reclaimed Brick Company specialise in salvaging and repurposing old bricks, slate, and timber, offering a sustainable alternative to virgin materials. Additionally, design for disassembly (DfD) is becoming more prevalent, with architects and engineers embracing modular and prefabricated designs that allow buildings to be dismantled and reused rather than demolished. Timber-framed modular buildings, for example, enable entire components to be recovered and reassembled elsewhere.
There has also been progress in the development of green concrete and low-carbon materials. The rise of low-carbon cement alternatives, such as Material Evolution’s geopolymer concrete, showcases a way forward by reducing emissions by up to 85% compared to traditional Portland cement. Despite these advancements, mainstream adoption remains limited. To truly embed circularity into our construction practices, we need both regulatory support and industry-wide commitment.
The Impact of Steve Reed’s Speech on Industry Stakeholders
Steve Reed’s speech highlights the UK government’s intention to drive the construction industry toward a circular economy, which will have significant implications for various stakeholders.
For developers, this shift presents both challenges and opportunities. While incorporating circular economy principles may require changes in procurement strategies, material selection, and project planning, developers who embrace these changes will benefit from long-term cost savings, regulatory incentives, and increased asset value. Projects designed for adaptability and material reuse will be more resilient in a future where sustainability standards become stricter.
For contractors, the transition to circular construction means adapting to new methods of material sourcing and waste management. Traditional demolition practices may be replaced with deconstruction techniques that allow for material recovery and reuse. Construction firms will need to invest in skills training and new technologies to ensure that circular economy principles can be practically implemented on-site.
Funders and investors will play a critical role in supporting the transition. The financial sector must recognise the long-term value of sustainable buildings and provide financing models that incentivise circular construction. Green bonds, sustainability-linked loans, and tax incentives for circular projects could encourage greater adoption of sustainable practices. Investors who prioritise circular economy projects will benefit from reduced risks associated with regulatory changes and shifting market expectations.
For designers and architects, the shift towards circularity will require a fundamental change in design philosophy. Buildings must be planned with deconstruction and adaptability in mind, ensuring that materials can be repurposed at the end of their lifecycle. Standardising modular construction and prioritising materials with high reuse potential will be essential. Digital tools such as Building Information Modelling (BIM) can help track materials and facilitate circular design principles.
The supply chain must also undergo transformation. Manufacturers will need to increase the availability of high-quality recycled and reclaimed materials, while suppliers must establish transparent sourcing practices to ensure compliance with new regulations. Developing a strong marketplace for secondary materials will be key to making reclaimed materials more cost-competitive with virgin resources.
Areas for Advancement in Circular Construction
While promising developments exist, there is vast room for improvement in integrating circular principles across the industry. Building material passports could play a crucial role in tracking materials throughout their lifecycle, ensuring their reuse in future projects. Implementing a standardised system for tracking materials would require industry-wide cooperation and support from regulatory bodies.
Government policies should prioritise refurbishing existing structures through tax benefits and financial incentives, making retrofitting a more attractive option for developers. Greater adoption of prefabrication and modular construction would further support circularity by improving efficiency and ensuring that materials can be easily reused, substantially reducing construction waste.
Traditional demolition methods often result in significant waste, whereas selective dismantling, or ‘deconstruction,’ allows for the recovery of high-value materials. Encouraging this practice would require investment in innovative demolition methods and widespread industry training. The supply chain for recycled materials also needs strengthening. Recycled concrete and steel, for example, often face supply limitations or are priced higher than virgin materials due to demand fluctuations. Government-backed initiatives could bridge this gap, making sustainable options more accessible and cost-effective.
Barriers to Circular Construction and How to Overcome Them
Economic viability remains one of the biggest challenges in transitioning to a circular construction model. Sustainable materials and construction techniques are often perceived as more expensive. Virgin materials continue to dominate due to economies of scale and subsidies for extractive industries. To counter this, government intervention through tax relief or subsidies for reclaimed and low-carbon materials is necessary. Developers must also be educated on the long-term cost savings of circular approaches, including lower maintenance costs and reduced landfill fees.
The construction sector has historically been slow to adopt new methodologies. Traditional construction methods are well-established, and many firms remain reluctant to deviate from standard practices. Overcoming this resistance requires industry-wide education and training initiatives, along with showcasing successful case studies where circular practices have yielded economic and environmental benefits. Updated building codes and regulations that encourage circular design would further incentivise adoption.
Another significant challenge is the lack of standardisation and regulation. For circular practices to become widespread, there must be clear industry guidelines and standardised frameworks. The introduction of a national ‘Material Passport’ system, backed by legislation, could ensure traceability and accountability. Mandating lifecycle assessments in the planning process would drive more responsible material choices. Encouraging collaboration between stakeholders—including designers, engineers, suppliers, and policymakers—will help create unified industry standards.
The market for reused materials is still developing. Many reclaimed materials, such as steel and bricks, lack a robust market due to inconsistent quality or the perception of inferiority compared to new materials. Addressing this issue requires the establishment of government-endorsed marketplaces for reclaimed materials, certification schemes to assure quality and compliance with safety standards, and investment in technologies that improve the efficiency of material recovery and repurposing.
Conclusion: A Call to Action for the Construction Industry
Steve Reed’s speech is not just a policy announcement—it is a wake-up call for the entire construction sector. As structural engineers, we have the power to drive this transformation by advocating for smarter designs, pushing for sustainable material choices, and challenging the industry’s status quo.
The future of construction must be one where buildings are designed not only for their initial purpose but with their entire lifecycle in mind. By fully embracing the circular economy, we can reduce waste, lower emissions, and build a more sustainable and resilient built environment for future generations.