The Ellen MacArthur Foundation (EAF) discussed what “drives companies towards remanufacturing”.
The article stated that “recovering, reprocessing, remanufacturing and redistributing parts” were not “economically beneficial option[s]” for manufacturers in the “post-industrial revolution linear economy”, but added that “the picture in the first part of the 21st century is very different”, with an “increasing number of companies” identifying opportunities in “adopting remanufacturing as a larger part of their business”.
This can be seen in particular in aerospace, automotive and construction markets, with international remanufacturing network ReMaTec’s Pankaj Arora stating that “the security of cores, future spare parts supply and brand protection (market share)” are among the “underlying reasons for OEMs taking up remanufacturing”.
The article added that “beyond the more often stated economic and environmental benefits”, there are “other critical business considerations where remanufacturing brings advantages”, such as the “need to have a secure and consistent material and parts supply”. It gives a series of “facts and figures representing significant business successes” that also “contribute” to a “positive picture” of remanufacturing,
These include a 30 to 50 percent parts cost saving and 80 percent less energy, 88 percent less water is used, 92 percent fewer chemical products and 70 percent less waste production at just one production centre in the automotive sector. This particular location, owned by Renault, is “the most profitable production centre” in its business, with all the parts remanufactured there having “the same warranties and guarantee as new components”.
In turn, the plant is optimised to “maximise the used parts, components and materials”, with 43 percent of “carcasses” said to be “fully re-usable”, while another 48 percent are recycled “to produce new parts” and nine percent are retreated. In conclusion, the piece notes that there are “similar stories” across industries where “there are large expensive parts”, and that “despite the economic information out there and various business drivers, there are still reasons to believe that many are missing out on a potential opportunity”.