In some industries, customers can buy re-manufactured products instead of a newly manufactured one. This fast growing segment of re-manufacturing is the industrial practice of returning a used product to at least its original specification & performance with an equivalent warranty.
Such a definition makes it clear re-manufacturing is much more than only repairing or refurbishing products. Re-manufacturing is done in specified processes which are highly industrialized and must apply to strict procedures & quality standards. In many cases it is the OEM’s who dictate these, as they sell the re-manufactured products under their own brand. An important reason for re-manufacturing is environmental care, as it can significantly reduce the environmental footprint. Research proved that the average savings in re-manufacturing automotive components compared to normal production are considerable (88% materials savings, 53% lower CO2 emissions and 56% lower energy consumption)¹. Closely linked to this is a second important reason for the growing interest in re-manufacturing: attractive margins for re-manufacturers and OEM’s.