Remanufacturing Benefits: Cost, Quality & Eco Advantages

Remanufacturing – the process of transforming a non-functioning core into a high-quality finished product – is gaining traction within the automotive industry. Proponents highlight the environmental benefits of remanufacturing, but the cost benefits of remanufacturing for fleets, manufacturers, and end users are equally compelling.

Remanufacturers have a distinct advantage as they understand a product’s performance, allowing them to identify design weaknesses that original manufacturers might overlook. This insight enables remanufacturers to apply precise design and process improvements to address specific issues, resulting in products that match or exceed the original in quality, performance, and cost. Examples include chrome plating parts susceptible to rust, incorporating larger bearings to eliminate weak points in assemblies, and adding sensors for proactive service alerts. Notably, remanufacturers provide the same warranty for remanufactured parts as they do for new original equipment genuine parts, offering significant savings—often up to 40 percent—compared to new replacements.

As electronics and mechatronics evolve rapidly in light-duty and heavy-duty vehicles, suppliers, OEMs, dealers, and distributors are increasingly faced with the challenge of managing end-of-production inventory and service level requirements. Many business owners grapple with the risk of excess inventory filled with discontinued SKUs to meet possible future demand. The remanufacturing process presents a viable alternative to mitigate these last-time purchases, significantly reducing stagnant inventory, lowering cash expenditures, and enhancing long-term product life-cycle service levels.

Due to the cost benefits of remanufacturing compared to traditional manufacturing methods, OEMs can significantly reduce warranty expenses by implementing a comprehensive remanufacturing strategy. Moving forward, both OEMs and suppliers will need to adopt an integrated lifecycle management approach to new product introductions that incorporates a design for remanufacturing discipline. This strategy enables fleets to operate their vehicles more efficiently and effectively while allowing employees to focus on their core mission of servicing customers.

Beyond product advantages, the job creation, energy conservation, and waste reduction associated with remanufacturing are tangible and significant. For instance, a recent announcement from an air disc brake (ADB) manufacturer revealed they have over 40 million ADB calipers in circulation worldwide. The energy contained in these potential ADB cores is equivalent to powering 1.5 million U.S. homes for one year. A Chicago-based fuel injector remanufacturer promotes that its process for one product line saves enough energy to power 50,000 U.S. homes for a year. Furthermore, remanufacturing extends the life of a core multiple times before it requires disposal in a landfill or recycling facility. Fleets that give priority to remanufactured products can quantify their positive environmental impact, prompting both private and public sectors globally to recognize this connection and push for legislative initiatives to support this trend.

Technological advancements in 3D printing, additive surface treatments, and reverse engineering are enabling remanufacturers to reclaim a higher percentage of the core material, providing them a competitive edge as they leverage these innovative tools. As fleets increasingly demand remanufactured products, technology will continue to evolve, enhancing the value of these already beneficial offerings.

Quality and reliability will always be paramount. It's essential that remanufactured products not only meet but exceed the quality and performance standards of new products to maximize benefits for fleets, manufacturers, and the environment. According to the Remanufacturing Industries Council, remanufacturing can save up to 85% on energy, water, and materials compared to newly manufactured products. This trend has inspired John Chalifoux, president of MERA – the Association for Sustainable Manufacturing, to revise the environmental mantra to “Reduce. Reuse. Reman. Recycle.” An updated version of the well-known three-arrow icon has been introduced to incorporate a fourth arrow.

For fleets, opting for remanufactured products provides a solution that is as good as or better than new at a substantial cost savings. Additionally, fleets will conserve resources by purchasing ready-assembled remanufactured products instead of conducting in-house repairs. Fleets can further bolster the remanufacturing process by choosing MERA certified remanufactured products from trusted sources and facilitating the smooth return of cores to their suppliers.