The Utilization-focused Service Economy: Resource Efficiency and Product-life Extension by Walter R. Stahel Summary: Asa S. Angeles Critique: Anton Clarkson

The Main Idea The reuse of goods is economically and ecologically superior to the recycling of materials. Although feasible, a change to utilization-focused economies requires a change in corporate and governmental mind-set.

Waste-reduction and Resource-saving Strategies Reuse – Slowdown of material flow from production to recycling or disposal – Waste prevention – Reduced environmental effects from transport Recycling – Does not affect speed of material flow through economy

Closed-loop Strategies Reuse Recycling

Self-replenishing System

Reuse vs. Recycling

Economic Incentive (?) The smaller the loop, the more profitable it is. In a free market, the ‘invisible hand’ would guide manufacturers toward reuse. Instead, they focus on recycling. Will extending life of goods cause the economy to break down?

Labor and Energy Input for Production and Maintenance

Quality Defined As Optimization of System Functioning Over Long Periods of Time

How Selling Products Affects Liability

How Selling Utilization Affects Liability

How Selling Products Affects Design and Waste Reduction Strategies

How Selling Utilization Affects Design and Waste Reduction Strategies

Broadening ‘Reuse’ to ‘Optimizing Use’ New strategies: – Long-life goods – Product-life extensions of goods – Product-life extensions of components – Commercial waste prevention strategies – Multifunctional products

Key Issues Governing Optimizing Use “Prevention” engineering Adaptable system design Fault-tolerant and self-protecting system design Standardization Immediate evaluation of system parameters High-degree of training and access to expertise

System Quality A successful system is harder to compete against than a successful product Examples – Lighthouses and Guidance Systems – Aircraft Tractors – Carpool lanes – All-in-one products

Critique Article Mechanics Radical social changes required for Stahel’s “reuse economy” Engineering practices

Claims Stahel makes many claims but backs up few – “One important difference is that the smaller loop, the more profitable it is(Table 1)” One would expect table one to support this claim

Table 1 Stahel: Differences between reusing and recycling

Data Presented Article published 1994 The only data presented is dated 1976, 18 years prior to publication The data used to back Stahel’s claim is not even real, and to complicate is presented in non-intuitive metric

Table 2 Stahel: Product Life Extension

Lack of Outside Sources Stahel fails to present any data, thoughts, or corroborating evidence from anyone but himself Stahel: Cited references

Stahel’s main point In order to enter into a reuse economy Stahel requires a change in these “basic economic concepts” – A change in the notion of economic value from “exchange value” to “utilization value” – A change in the notion of risk from entrepreneurial to pure risk – A different attitude toward ownership where the status of utilization becomes dominant over that of property – A change in the function of the point of sale from a one-time point- of-no-return in the transfer of liability and full ownership to a point of service that includes periodic negotiation

Stahel’s main point cont Stahel’s proposed “reuse economy” does not follow the idea of the brain doesn’t change so technology must Stahel’s plan requires vast socioeconomic changes that go against the grain of present day society To justify the necessity of these changes Stahel provides no evidence but his own commentary

Engineering Practices Stahel does provide a list of many good engineering practices which should become common practice These are located on page 188 This list is the true value of Stahel’s article

Conclusion Article Poorly written Stahel does not justify claims nor present substantiating data Expects reader to accept his principles which he does not prove or refer to proof Expects too much from society

Questions/Discussion