Urban industry design

Local production as business strategy

The FABRIX project provides useful insights to M-SMEs (Micro, Small, and Medium Enterprises, which make up 99% of the European T&C sector) who want to explore local & sustainable production as a business strategy: project activities focus on cities with contrasted production profiles (Rotterdam and Athens) while supporting enterprises to co-design urban production strategies and activities with the aid of Facilitators (municipalities, hubs, incubators) and engaged communities of change (designers, grassroot organisations, citizens).

Why do we explore “local production” in the FABRIX project?

The FABRIX project is at the crossroads of Industrial Symbiosis – one sector’s waste is another sector’s input – and Urban Production Relocation: cities have been attracting people and talent through services, but now should also concentrate on facilitating employment in production and retail, which are closer to downstream buyers and consumers. This might be one of the solutions that could stop European industry from essentially bleeding to death - something that began in the 1970s with the transfer of production to low-cost countries, and which was further worsened by the end of import quotas in the 2000s.

In FABRIX, we engaged with M-SMEs (Micro, Small, and Medium Enterprises,) who all mention working within a “local” dimension as being “mostly desirable”. European population concentrates in larger cities and urbanised regions; cities are thus desirable as they attract and offer varied people and talents who can cooperate for a transition towards a planet-friendly and social world. Cities face numerous challenges, such as the need to be accessible to residents across economic spheres - essentially to promise and prove that they can ensure well-being to families, providing them an economic and social role. According to the principles of the New European Bauhaus movement promoted by the EU, cities should seek to align beauty, sustainability and communities. The FABRIX community believes that textile and clothing organizations should contribute to this movement - which they can do provided that they recognise some milestones and avoid a few pitfalls on the way.

What is “local production” for organisations in the FABRIX project?

In FABRIX, we adapted local scenarios that we had formerly developed for Industrial Symbiosis and Urban Production Relocation in the HEREWEAR project.

Local production often starts from the “geographical” perspective or “space”. In FABRIX, it pre-defined a radius that was the size of a city (Rotterdam, Athens). Space helps reduce transport costs or time management, fine-tune needs and speed time to market. It also changes the sourcing to the flows that are available in cities e.g. post-industrial waste (dyes, fabrics) or post-consumer waste (garments, home items, outdoor gear), therefore supports creative reuse with available sourcing.

Next to “space”, local production is analysed through the three perspectives of “scale”, “scope” and “social”.

Scale is a “volume” perspective. New economic thinking pushes business actors to produce a “just” capacity that meets real demand, increases the number of wears through future loops of reuse, redesign and repair, and limits the volume to be recycled or wasted. In FABRIX, scale stimulates the production of smaller series, either in urban and shared co-working production spaces or through networks of ateliers and local makers. Less volume means that business models switch their starting point from the “end consumer price” to the “true cost” of production (see details below).

Scope is a “sector opening” perspective. The T&C sector is needed in cities as much as industry-services or agriculture-food sectors. As FABRIX is anchored in Industrial Symbiosis– one sector’s waste is another sector’s input -, FABRIX explores these flows. How the agri-marine-industry waste can feed repair, reuse, remanufacture or recycle e.g. for nature-based yarns, fabrics, dyes or industry-based new products. Conversely, how by-products of T&C can be inputs to agriculture and industrial sectors e.g. for packaging, health etc.

Social is a “society” perspective that informs long term decisions for well-being and democracy. It helps all citizens including alternative career people, women and single mothers, off-track youth, multi-degree students, talented migrants, to work, live and learn about solidarity in the city. From a business standpoint, creating value for the people is as important as creating financial value, and may have a greater impact in the long-term durability of the business.

M-SMEs should choose in the above four entry points which fits best to their business vision.

Preparing an operational roadmap

The FABRIX project helped identify a number of challenges that M-SMEs had to face to start and develop their business in a circular and productive urban environment.

Position yourself on the T&C value chain. Define what is your main asset, which often starts with the skills of the M-SMEs co-founders. Make it unique by connecting it to a main challenge in your city. Map the partners you need to complete your value chain.

Prepare yourself for at first and second loops a minima. Changing to a circular economy makes a business engage into a circular strategy that aims at extending the life or the number of wears of their products, or design services to support those. Circularity is not about produce – use – recycle, but about a 9 R’s scale that includes reduce, reuse, repair, or remanufacture https://grow-circular.eu/knowledge-base/9r-framework/. As an M-SME position your idea to last through at least a first and second loop cycles.

Define your best local direct suppliers and direct clients. Start from the upstream partners that you need. Define your downstream clients that will provide your business.

Choose upstream and downstream partners through Industrial Symbiosis (IS) x Urban Production Relocation (UPR) criteria. Quality of business, long-term engagement into twin transition, possible long-term partnership as main criteria.

Locate them on the productive city map. The productive city diagram is a visual representation of companies you can partner with in order to achieve IS and UPR.

Connect with them through the FABRIX platform. Access their profiles, connect and chat with them to start your first business connections.

M-SMEs benefit from the FABRIX platform to start or strengthen relationships with relevant direct upstream and downstream partners.

Contributed by Cedecs-TCBL.