Remanufacturing involves restoring end-of-life products to a condition as good as new, playing a pivotal role in the circular economy. However, its broader adoption by industrial companies hinges on its economic feasibility. Johan Vogt Duberg, in his doctoral research at Linköping University, explores strategies to make remanufacturing a viable business model.

Duberg argues that increasing environmental awareness can be a profitable avenue. Through remanufacturing, companies cannot only cut down on raw material costs but also reach out to new customer segments and create unique circular business models. In his thesis, Duberg delves into the allure of remanufacturing for industrial companies that manufacture a diverse range of products.

In practice, remanufacturing entails upgrading end-of-life products to function and appear new. These products, called cores, span a diverse range—from lawnmowers and trucks to computers and car parts. This process transcends mere repair, embodying an industrial-grade procedure that demands systematic operations akin to those in new production lines. A substantial volume of returned cores is essential to sustain an efficient, continuous production line.

Duberg highlights the sporadic nature of core returns as a significant hurdle to achieving scale and efficiency in remanufacturing. To mitigate this, he suggests several strategies, such as deposit schemes, buy-back initiatives, and leasing models. These approaches ensure a steady influx of cores, eliminating the need for companies to purchase them, thereby reducing costs and ensuring a reliable supply of materials for remanufacturing.

Despite these advantages, remanufacturing accounts for only about two per cent of the total manufacturing industry, primarily due to its complexities. Unlike standard manufacturing, where uniformity is typical, every returned core is unique, necessitating a highly adaptable process. This complexity requires companies to revamp their business models to effectively incorporate remanufacturing, thus enhancing profitability while yielding environmental benefits.

Duberg’s research also underscores the importance of aligning with increasing regulatory pressures for sustainable resource management, such as those potentially imposed by entities like the EU. His framework aids companies in transitioning to remanufacturing by outlining critical considerations and assessing economic impacts.

Duberg underlines the necessity of commitment and strategic planning for companies contemplating the shift to remanufacturing. It’s not an initiative that can be launched overnight; it requires a significant investment of time and resources. His insights and proposed framework serve as a solid guide for companies looking to integrate remanufacturing into their operations, ultimately benefiting both their bottom line and the environment.

More information: Johan Vogt Duberg et al, Remanufacturing Initiation for Original Equipment Manufacturers, Linköping Studies in Science and Technology. DOI: 10.3384/9789180756280

Journal information: Linköping Studies in Science and Technology Provided by Linköping University