From Reuters, news that Catepillar Inc. “has stepped up its “remanufacturing” of products ranging from water pumps all the way up to military tank engines, returning more than 2 million of them to the market every year. All carry a like-new warranty and price tag that’s roughly half of what it would be for a product just off the assembly line.” The company notes a range of concerns that prompt this move:
Environmental concerns are certainly driving Caterpillar’s remanufacturing push.
“We think there is going to be tremendous pressure going forward for reusing our natural resources as much as possible,” Chief Executive James Owens told Reuters recently.
But the company is also thinking dollars and cents. Owens said remanufacturing has potential for major growth, perhaps 10 percent to 15 percent annually for years to come.