Issues

  • In direct competition with low cost imports, only organised, low cost organizations will be able to engage head to head.
  • Reputation, warranties, relationship with OEMs, and excellent bi-directional logistics will be major competitive issues for local contenders.

Challenges

  • Do not compete on price: provide complete supply and maintenance and refurbishment service to reclaim value chain directly.
  • Identify novel service/product combinations, particularly those that combine purchase, maintenance and upgrade capabilities.
  • Seek opportunities to tie in to OEMs or to accredited brokers and distribution channels for added credibility.
  • Back-integrate into customers operation to in-source the aspect of operation related to use of the equipment.
  • Become the local maintenance and remanufacturing arm of a reputable foreign importer, particularly if they have no presence in the UK; consider profit share or equity stake of OEM in business.

  • Do not remanufacture for primary home, European or other western markets, but rather for secondary markets.
  • Relocate or create subsidiaries in developing markets to take advantage of local cost structures; this creates a foreign remanufacturing operation at point of high demand, but also capability to re-import cost-effectively into the developed world.
  • Urge industry associations to present a coherent message for remanufacturing in their sector.
  • Ally with other service providers, such as logistics agents, where the above service is beyond the scope of knowledge, or is at another business interface.
  • Consider opportunities in logistics and brokering of core components using existing skills, and leveraging economies of scale.
  • Get together, for example in trade associations, to lobby for changes to legislation that are unfairly hampering competition.
  • Benchmark and identify best practices within and without the sector.