Factsheet · RTA Manufacturing Overijssel

Circular CNC systems

Computer numerical control, or CNC, is the computer-controlled operation of machine tools that produce parts quickly and precisely in metal, plastic or wood. This factsheet from the Regional Transition Agenda Manufacturing Overijssel breaks down the material value, supply risk and circular revenue models of CNC systems.

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5/5
score on technical lifespan and price per unit
€2,118.50
value per tonne of augers, drills, saws and tools (50% of weight)
€1,359m
economic perspective at product level in the region, the highest chain value
Tin
is on the EU critical materials list; gold and palladium carry a high supply risk

What is a CNC system?

Computer numerical control is the computer-controlled operation of machine tools that produce parts quickly and precisely in metal, plastic or wood. The process drives a range of complex machines, from grinders and lathes to milling machines and routers. CNC machining executes three-dimensional cutting tasks from a single set of instructions.

Almost any material can be used in a CNC machine, depending on the application. Common materials include metals such as aluminium, brass, copper, steel and titanium, as well as wood, foam, fibreglass and plastics such as polypropylene.

Part of: the Regional Transition Agenda Circular Economy Overijssel, manufacturing industry · main project. Commissioned by: Province of Overijssel. Analysis: product footprint, material impact, supply risk and circular revenue models.

Product components

Five component groups together make up 95% of the total weight. Augers, drills, saws and other tools weigh the most and carry the highest value per tonne. IT plastics carry the largest share of eco-costs.

ComponentWeightValue per tonneEco-costs per tonneShare of eco-costs
ICT and telephony components15.00%€965.85€166.0223.24%
Control and steering systems5.00%€321.95€40.795.71%
IT plastics25.00%€375.00€226.8131.75%
Augers, drills, saws and other tools50.00%€2,118.50€216.2230.26%
Hydraulic systems5.00%€441.67€64.619.04%

Environmental impact and supply risk

The highest environmental impact comes mainly from IT plastics and heavier steel components. Manganese also has a high impact. The precise impact depends on the application: laser cutters have different material requirements than grinders.

Gold, palladium and tin carry a high risk to supply security and business reputation. This sits mainly in the ICT components.

Critical material. Tin is on the EU list of critical materials. That makes supply security part of product strategy and design choices.

Raw materialRiskExplanation
Goldhighhigh risk to supply security and reputation, mainly in the ICT components
Palladiumhighhigh risk to supply security and reputation
Tinhighhigh risk, included on the EU list of critical materials

Where is value retained?

The residual value of the end product is low after very long use, but a second-hand CNC machine can hold value for many years. Because innovation moves very fast in this product category, components remain valuable after the end product is written off. That makes component retention more valuable than material-level recycling.

€1,359m
economic perspective at product level in the region, the highest value in the chain. Reuse and remanufacture each retain €951.30m, while material-level recycling yields only €53.81m. Source: RTA Manufacturing Overijssel, 2020.

The value-chain analysis compares the regional economic perspective by chain phase, from new materials to landfill.

Chain phaseRegional economic perspective (€ millions)
Materials (virgin/new materials)€153.76
Components (new components)€521.73
Product€1,359.00
Reuse (product)€951.30
Repair (product)€815.40
Refurbish (product)€679.50
Remanufacture (secondary components in/for product)€951.30
Repurpose (components for or as another product)€339.75
Recycle (materials)€53.81
Landfill (lost)€−153.76

Revenue models and scores

The lease model and the performance model apply best. In this sector, it is common practice to provide training for essential maintenance, teaching new operators the basics. Repair services are not yet part of current revenue models; component replacement could increase the potential for circular revenue models. Economic potential lies in service models and in component reuse.

Opportunities and points of attention for circularity:

  • CNC systems score highly on both price and technical lifespan.
  • A high degree of complexity, configured very specifically for one manufacturing process.
  • The potential for sharing the product is relatively small.
  • Component replacement could increase circular potential.

Product properties that support circularity, scored from 1 (low indication) to 5 (high indication):

Product propertyScore (1–5)
Technical lifespan5
Price per unit5
Predictability of demand4
Frequency of use3
Recyclability3
Modularity3
Product simplicity2

Further reading

This factsheet belongs to the main project on circular revenue models in the Overijssel manufacturing industry and connects to New Economy’s broader services around product footprint and circular design.

Insights from this project

From this project

Citable insights

Figures, observations and recommendations from Circular CNC Systems. Free to use under CC BY 4.0, with attribution.

All insights

Frequently asked questions

Do CNC systems retain their value?

Yes. The residual value of the end product is low after very long use, but a second-hand CNC machine can hold value for many years and components remain valuable after write-off.

Which raw materials are critical in CNC systems?

Gold, palladium and tin carry a high risk to supply security and reputation, mainly in the ICT components. Tin is on the EU list of critical materials.

Which revenue model fits CNC systems?

The lease model and the performance model apply best. Service models and component reuse offer the most economic potential.

Which component weighs the most?

Augers, drills, saws and other tools make up 50% of the weight, with a value of €2,118.50 per tonne.

From factsheet to circular strategy

The analysis makes visible where material value, critical raw materials and revenue models converge. Product Footprint and circular design translate these insights into choices in design, procurement, service and reverse logistics.

View Product Footprint
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