Some 3,600 suppliers and customers representing the remanufactured auto parts industry will be assembling at the RAI Amsterdam Convention Centre in The Netherlands for the June 23-25 ReMaTec 2019 exhibition.
“At ReMaTec we have met new buyers from China, Dubai and Europe that are interested in purchasing material from us,” says Justin Greenberg, CEO of Katy, Texas-based DieselCore. “It makes more sense for us to exhibit at ReMaTec with its specialty in remanufacturing than some of the larger aftermarket shows.”
Describing ReMaTec as “a unique multi-industry platform,” John Chalifoux, president & COO of the Motor & Equipment Remanufacturers Association (MERA), appreciates how the event “brings together industry leaders and remanufacturing specialists to find and share solutions on sourcing parts and components for the remanufacturing industry, reversed logistics and core management.”
MERA’s “Manufactured Again” initiative is comprised of two elements – a comprehensive remanufacturing education and awareness campaign and the Manufactured Again Certification program that certifies remanufacturers and their suppliers. “Together, these two resources work in tandem to promote the quality, value, and environmental benefits of remanufacturing,” says Chalifoux.
Along with greeting attendees at MERA’s booth, Chalifoux will be taking part in a ReMaTec “Meet the Expert” session discussing “Advanced Marketing for Remanufacturers,” one of many educational programs taking place at the event.
Live demonstrations on augmented reality, industry 4.0 and robotized remanufacturing can be experienced at ReMaTec’s InnovationLAB.
With an overall conference theme of Investigating the Future: Remanufacturing Opportunities and Challenges in a Transforming Industry, additional training topics include “Five trends transforming the automotive industry,” “Working for OEMs – How to qualify as an independent remanufacturer,” “Testing & Diagnostics,” “Legal & Compliance,” “ECU Remanufacturing,” “Battery Pack Remanufacturing” and a “Diesel Discussions” specialized panel program.
“The show offers remanufacturing professionals from across the world the opportunity to meet and network, grow their business and develop their knowledge of trends and technical developments,” says ReMaTec Show Director Niels Klarenbeek.
Joining the ReMaTec agenda is the International Conference on Remanufacturing (ICoR), organized by researchers from the University of Strathclyde and Linköping University. “This conference is an excellent opportunity to learn from research and industrial practices on the topic of remanufacturing,” says Linköping’s Erik Sundin.
“We will also present the winner of the new Reman Challenge student academic competition, sponsored by Borg Automotive,” adds James Windmill of Strathclyde. “For the first time, we have representation from West Africa, thus continuing our drive to expand the reach of remanufacturing and the discussion of the subject among academics and industrialists from all global settings.”
According to an analysis by Persistence Market Research, the category’s annual global growth rate is expected to top 7 percent through 2026, culminating in a value of $91 billion. Tier I players are estimated to account for 25 percent to 30 percent of the market, says PMR marketing manager Rahul Singh. About 35 percent to 45 percent of the reman business belongs to tier II operations, while tier III companies lay claim to 25 percent to 35 percent.
A streamlined approach
Commonly referred to as “reman,” the segment is defined as “a standardized industrial process by which previously worn, sold or non-functional products are returned to like-new, or better, condition in a factory setting using industrial processes. Each product is disassembled to its core materials and then each reusable core, in combination with new components, is cleaned and remanufactured to like-new condition to meet, or exceed, the quality and performance of newly manufactured goods.”
“Reman parts offer same quality and warranty as new parts,” according to Klarenbeek. “It should never be associated with junk parts or salvage yards.”
Coinciding with April 11’s international Global Remanufacturing Day, Texas Gov. Greg Abbott issued a celebratory proclamation within The Lone Star State at the request of Vehicle Reman LLC of Tyler, Texas. “It is another step in promoting the cost efficiency, reliability and environmental benefits of remanufactured products,” notes CEO Greig Latham, who says his operation is the only company in the United States dedicated to remanufacturing entire cars, SUVs and Class 1-5 pickup trucks, vans box trucks, flatbeds and specialty vehicles up to 19,500 pounds.
The first Global Remanufacturing Day was celebrated in April 2018 as a way to highlight the value of remanufactured products and how the process saves, on average, 85 percent of energy use, 86 percent of water consumption and 85 percent of material use compared to new products. Remanufacturing as a whole supports 180,000 full-time American jobs and produces more than $100 billion worth of goods each year.
Under the provisions of the Federal Vehicle Repair Cost Savings Act of 2015, all national government agency fleet managers are encouraged to use reman replacement components for their fleets “to capitalize on the many benefits of remanufacturing.”
“Reman gives fleet owners a valuable option for getting the most out of end-of-life vehicles,” says Latham. His company provides its customers with same-as-new pickups and other vehicles at half the cost of buying new.
“This is a natural evolution of well-established automotive parts remanufacturing, but applied to the whole vehicle,” he explains. “We have a proven system that remanufactures a truck, van or other vehicle back to original specifications. When customers see the same-as-new quality and remarkable savings, reman really sells itself. The main challenge for us is many fleet buyers don’t yet know about reman and what it can do.”
A typical candidate is a truck, SUV, van or car with at least 100,000 miles and seven years in service. Vehicles up to 20 years old can undergo remanufacturing, with Vehicle Reman specializing in Ford, General Motors and Chrysler nameplates. “Reman vehicles are quieter, ride more smoothly and will usually achieve much better fuel economy than the pre-reman units,” says Latham. Each sale is backed by a three-year powertrain warranty.
“Using a streamlined, assembly line approach inside a spacious 60,000-square foot facility, we can rebuild vehicles to like-new condition in less than 48 hours. Everything including the engine, transmission, drivetrain, interior and body are remanufactured to double the life of your fleet at about half the replacement cost,” according to Latham.
“Remanufacturing is the path to becoming more environmentally friendly as it substantially prolongs the need to dispose of vehicles,” he elaborates. “Remanufacturing is essentially bringing certain vehicle components back up to the manufacturer’s original specs. A remanufactured part will withstand all the same stress and quality tests of a new part. This technique significantly extends the life of a vehicle in a very affordable way, which reduces the need to replace fleet vehicles as often.”
