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The circular economy has become a significant policy in many countries around the world. In order to achieve a circular economy, wasteful use of resources must be reduced and waste products from manufacturing must be reintroduced into production systems. It is, however, impossible to totally avoid scraps from the production of most goods. This chapter describes an investigation of current practices of 108 small-and-medium-sized manufacturers (SMEs) regarding their use of solid wastes or scraps. Of particular interest are the scraps generated by SMEs because they comprise 98.5% of all manufacturers in Thailand. Despite concern regarding the growing volume of scraps from production lines, this study collected data from both factory visits and from manufacturers and found that waste reclamation policies among SMEs are rare. Most factory owners resort to selling off-cuts to formal and informal recyclers as well as dumping scraps in the city’s bins. Despite the general recognition of the growing creative industry in Thailand, the use of design has not been considered as a potential solution to this problem by manufacturers. Since failures in scrap reclamation schemes for product designs also hinge on market prospects and opportunities perceived by manufacturers, market strategies in the green economy must be devised. Only then can Thailand achieve circular material flow in its industrial sector.