Source: Supply Management
July 11, 2013
Already a significant industry in the UK and US, Nick Morley examines the benefits and risks of 'remanufacturing'.
Remanufacturing is a substantial, albeit largely hidden industry, currently worth around £5 billion of sales in the UK.
It has always been a part of developed countries' economies and has generally shown good economic resilience, similar to servicing and repair. For example, a study by the US International Trade Commission published this year estimated that the value of US remanufactured production grew 15 per cent between 2009 and 2011 to at least $43 billion (£28 billion), supporting 180,000 full time US jobs.
Historically, it has been strong in sectors that deal with mechanical or electro-mechanical machinery. Traditional examples include aerospace, automotive, machine tools, vending machines, automated teller machines (ATMs) and refrigerated display cabinets. It has also recently extended to consumer electronics and ICT, office furniture and even clothing.