Urban circular microfactories: local micro-plants for regenerative urban economies

Abstract

Urban circular microfactories represent an emerging approach to embed manufacturing within cities while advancing regenerative economic practices. By integrating local recycling, remanufacturing, and the revalorization of urban commodities, these micro-plants reduce dependence on long logistics chains and strengthen local resilience. This article investigates the role of urban microfactories in circular and regenerative economies through a synthesis of literature on circular cities, distributed manufacturing, and urban mining. Using a mixed-methods approach—combining systematic literature review, cross-case analysis of pilot projects, and evidence from life-cycle assessments—the study highlights the potential benefits of microfactories in reducing emissions, fostering job creation, and promoting material circularity. Results show that microfactories are particularly effective when processing locally abundant secondary materials, producing high-value customized goods, and operating in digitally coordinated networks. However, challenges remain in terms of energy intensity, scalability, zoning restrictions, and reliable feedstock supply. The findings underline that microfactories are not a universal solution but rather a complementary strategy for urban circular economies, requiring supportive governance, digital coordination, and public–private partnerships.