Remanufacturing: the benefits

Benefits to individual businesses:

Through sharing product information, both OEMs and remanufacturers can profit from supply chain improvements and enhanced product development. Through trade-in schemes, remanufacturers can build a better relationship with their customers than those who rely on ‘throw-away’, one-off purchases. And remanufactured goods can command a higher profit margin than new goods.



Benefits to the economy:

In total the unsung UK remanufacturing industry employs more than 50,000 people and contributes around £5,000,000,000 to GDP.



Benefits to the environment:

Remanufacturing recovers around 270,000 tonnes of materials with an equivalent carbon saving of 800,000 tonnes CO2, (around 0.5% of UK total carbon emissions) compared to new product equivalents.



It is at least a “Factor 4” process: effective consumption of energy and materials is only about a quarter of that used to manufacture new products. Compared to recycling, where efficiency gains are much lower, remanufacturing commands higher job skills, improved profitability and even a better safety record.



It is hardly surprising that remanufacturing is gaining interest from policy makers and environmentalists.