The benefits of remanufacturing for the remanufacturer may include:
- Local jobs – remanufacturing activities usually take place close to market, so while a product may have originally been manufactured overseas, remanufacturing provides the opportunity for creating local jobs
- Higher profit margins – remanufactured products often have higher profit margins than for traditional manufacturing
- Skilled jobs - remanufacturing is a great breeding ground for problem solving skills, more rewarding than production line jobs, and often retaining traditional industrial skill bases
- New manufacturing techniques - leading edge remanufacturers embrace state-of-the-art manufacturing processes - lean techniques, investment in people, material traceability - because they are key to business success
- Better customer relationships - through trade-in schemes, remanufacturers can build a better relationship with their customers than those who rely on throw-away, one-off purchases
The benefits of remanufacturing for the environment may include:
- Reduced raw material consumption – as remanufacturing preserves much of the material in original product, less raw material is used than for manufacturing new products. This is particularly beneficial where the product contains critical raw materials – materials where there is a supply risk.
- Reduced energy consumption – by limiting the amount of raw material extracted/recycled and the manufacturing of new components, remanufacturing typically uses less energy than manufacturing a new product
- Reduction in CO2 emissions – a reduction in energy consumption is usually accompanied by a reduction in CO2 emissions
- Reduction of material sent to landfill – not all end-of-life products and/or their components are suitable for recycling but instead end up in landfill. Remanufacturing reduces this flow of material by keeping material in use for longer.
The benefits of remanufacturing for the customer may include:
- Lower prices – remanufactured products are typically 60-80% of the cost of a new product due to the cost savings made from the recovery of the materials and energy content of the product
- Availability – for products that are manufactured to order overseas, a remanufactured product may be available with a shorter lead time. Additionally, remanufacturing may allow the customer to continue to use equipment, which may no longer be manufactured
- Purchasing flexibility – as remanufacturers have a real interest in knowing where their products are and recovering them they may offer their customers a range of services offering more than just a sale. Leasing, take-back, upgrading, supply and operate provide gains for both parties: Capital costs can be amortized, supplier relationships can improve and “whole life solutions” mean there are no disposal worries at end of life.
Caterpillar Remanufacturing celebrates 35th anniversary
CAT Reman opened its doors in Corinth and Alcorn County in Mississippi, USA in 1982 with just 11 employees. 35 years on, there are over 1,300 men and women working at CAT Reman’s four sites there.