Re-Thinking Progress: Why the Circular Economy Powers the Rental Revolution
Our take on the Ellen MacArthur Foundation's influential video that explains why moving from ownership to access isn't just good for business—it's essential for the planet.
In just under four minutes, the Ellen MacArthur Foundation's "Re-thinking Progress" video has fundamentally shifted how millions of business leaders and policymakers understand economic growth. With over 5 million views, it's become the most-watched circular economy explainer on YouTube—and for anyone in the rental industry, it should be required viewing.
The Core Message: We Can't Keep Taking, Making, and Disposing
The video opens with a simple but profound observation: our current economic model is linear. We extract raw materials, manufacture products, use them briefly, then throw them away. This "take-make-dispose" approach has powered growth since the Industrial Revolution—but it's hitting its limits.
Resources are finite. Landfills are overflowing. And the environmental cost of this linear model—from carbon emissions to ocean pollution—is becoming impossible to ignore.
"What if we could design products that could be made to be made again?"
— Ellen MacArthur Foundation
Why This Matters for Rental Businesses
Here's what strikes us at RenTech Magazine: the rental model is circular economy in action.
Think about what happens when you rent equipment instead of selling it:
- Products circulate — A single excavator might serve 50 different projects over its lifetime instead of sitting idle in one company's yard
- Maintenance is prioritized — Rental companies have every incentive to keep equipment running longer
- Utilization skyrockets — That power drill Brian Chesky famously noted is "used 13 minutes in its lifetime"? In a rental model, it's working every day
- End-of-life is managed — Rental companies control the full lifecycle, ensuring proper refurbishment, recycling, or responsible disposal
From Consumer to User: A Fundamental Shift
Perhaps the most important insight from the circular economy framework is this: it replaces the concept of consumer with user.
When you rent, you're not consuming a product—you're using a service. You get the benefit (a hole in the wall, a party tent for your wedding, an excavator for your construction site) without taking ownership of the physical object.
This isn't just semantics. It fundamentally changes incentives:
| Linear Model (Ownership) | Circular Model (Rental/Access) |
|---|---|
| Manufacturer profits from selling more units | Provider profits from maximizing utilization |
| Built-in obsolescence is profitable | Durability is profitable |
| Disposal is the customer's problem | Full lifecycle is managed by provider |
| Resources extracted continuously | Products and materials stay in circulation |
The Business Case: It's Not Just About Saving the Planet
Let's be direct: circular economy isn't charity. It's increasingly good business.
The Ellen MacArthur Foundation has worked with companies like Google, Unilever, and Philips to demonstrate that circular models can be more profitable than linear ones. Their research suggests that circular economy practices could generate $4.5 trillion in economic benefits by 2030.
For rental businesses specifically, the alignment is natural:
- Higher asset utilization means better returns on capital
- Extended product lifecycles mean more revenue per unit
- Predictable maintenance reduces unexpected costs
- Customer relationships deepen through ongoing service
What This Means for Your Rental Business
If you're running a rental operation, you're already participating in the circular economy—even if you don't think of it that way. But there's opportunity to go further:
- Tell the story — Your customers increasingly care about sustainability. The circular economy framing positions your rental service as an environmental choice, not just an economic one.
- Invest in longevity — Equipment that lasts longer generates more rental revenue. This aligns your interests with circular economy principles.
- Track and communicate impact — How many resources have your rentals kept out of landfills? How much carbon has been saved versus ownership? These metrics matter.
- Explore new models — Subscription services, maintenance packages, and trade-in programs all extend the circular logic.
The Bottom Line
The Ellen MacArthur Foundation's video isn't just an environmental message—it's a business roadmap. The shift from linear to circular isn't coming; it's here. And rental businesses are uniquely positioned to lead.
The question isn't whether the circular economy will reshape commerce. It's whether you'll be ahead of the curve or scrambling to catch up.
Watch the video. Share it with your team. And think about how your business fits into this larger story of economic transformation.
Want to dive deeper? Read our analysis of the $100 billion rental industry or explore how leading rental companies are applying these principles worldwide.
About the Original Video
"Re-thinking Progress" was produced by the Ellen MacArthur Foundation, a UK charity founded by Dame Ellen MacArthur to accelerate the transition to a circular economy. The Foundation works with business, academia, policymakers, and institutions to develop and promote the idea of a circular economy. We encourage viewers to explore their full library of resources at ellenmacarthurfoundation.org.