Profitable Scope Economies Empower the Sustainable Carded Wool Process

The carded wool process, that means regenerated wool, is rooted in Prato where industry has been for centuries specialised in the recycling of ‘rags’. Local companies put by-products on value with very low production costs, obtaining wearable soft wool fabrics. The chapter benefits from a couple of decades of research undertaken by the authors on the textile district of Prato, analysing the system of small laboratories based on a secular ‘re-use concept’. The main research purpose is to have a deeper understanding of the carded cycle to catch the key factors that could improve firms’ economic performance. Meanwhile it is rising a textile slowdown in the market demand. The research attempts to explore emerging ‘economies’ intrinsically connected with the reuse of the elements in each phase of the carded wool recycling process. The empirical findings address the classification and description of specific sector’s scope economies triggered throughout the carded circular process. Local entrepreneurs that manufacture relying on the historical production routine seem not to be conscious at all to generate valuable scope economies along the productive cycle. Therefore, firms do not consider them on company accountability and economic results. Updated managerial and organisational capabilities would enable to strengthen firms’ competitive advantage matching both the secular recycling process and the imperative of consumerism in supplying sustainable fabrics.