Remanufacturing:
Links to Sustainability
Matt Bogoshian
Senior Policy Counsel
Office of Chemical Safety and Pollution Prevention
U.S. Environmental Protection Agency
1
Background - Global
• Throughout history, crises have created conditions that led to the
conservation of, and reevaluation of how we use, natural resources
• World population is expected to rise from 7 billion to 9 billion by 2050.
Population growth in emerging nations and urban areas will lead to
unsustainable increase in consumption of natural resources; e.g., due to
world demand for copper, amount of copper mined over next 25 years may
equal amount of mined to date (Nasr, 2012).
• In order to adapt to these conditions, we expect an increased need to
conserve, e.g., greater use of remanufacturing practices.
2
Background - U.S. Remanufacturing
• In U.S., remanufacturing dates back to Great Depression and World War II.
Historically, main drivers were economics, resource shortages, and
available manufacturing capacity.
• Based on literature review, approximately 80,000 companies remanufacture
products, employing about 500,000 workers; about 25 workers on average
per company.
• Now the main drivers are: a) quality, because remanufactured products are
at least as good as new products; b) cost, because remanufactured products
are less expensive to make and purchase; and c) health, for people and
planet because remanufacturing products require less energy and generate
less waste.
• Examples of sectors involved in remanufacturing include auto parts,
cellular telephones, computers, construction equipment, and medical
equipment.
3
Sustainability Pillars
• Sustainability has three pillars:
– Economy;
– Environment;
– Society.*
• Remanufacturing has a place within each pillar, e.g.,
– Lower cost/Increased profit;
– Resource conservation/Less energy and pollution/Better
health for people/planet;
– Skilled jobs/People thrive.
* Pillars are linked to Profit, Planet, People.
4
Main Advantages of Remanufacturing*
•
•
Economy: Costs less to make and buy remanufactured product (costs about 20-60%
less) than equivalent manufactured product; Employs skilled work force.
Environment:
– Saves about 85-95% of energy needed to manufacture new product.
– Worldwide, conserves equivalent of 69 million barrels of crude oil annually, reducing
CO2 releases by 28 million tons.
– Conserves natural resources -- approximately 14 million tons annually -- and reduces
landfill disposal by about 75% compared to manufacturing new product.
– Upgraded products work more efficiently than previous new product.
•
•
•
Society: Remanufacturing requires skilled work force.
Performance: Works as well or better than previous product.
Responsibility: Companies are increasingly being held accountable by stakeholders
for environmental impacts from their supply chains and products during their life
cycles.
* Estimates based on review of the literature.
5
Examples
• Caterpillar has a remanufacturing division because reman is
good for customers, business, and environment:
–
–
–
–
–
Returned over 2 million “cores” in 2010;
Remanufactured or recycled 134 million lbs material per year;
Recycle 200,000 pounds cardboard, 3.4 million pounds wood annually;
Preserve about 85% of original energy “value add”;
Approaching “zero landfill” status.
• Xerox - about 95% of its equipment sold through direct
channels in U.S. is returned for end-of-life disposition:
– Diverted 5.4 metric million tons from landfill disposal in 2009 through
remanufacture and parts reuse.
6
Next Steps to Consider
• Raise awareness -- Promote remanufactured products as new
products; Motor & Equipment Remanufacturers Association’s
(MERA’s) Manufactured Again™ campaign sounds promising.
• Evaluate impacts -- Compare life-cycle impacts of remanufacturing
and manufacturing new products for key product lines; Populate
LCA data bases.
• Make connections -- Identify links to product take-back and
stewardship efforts.
• Align with standard-setting processes and tools -- Assign industry
classification code; Improve industry data collection; Incorporate
remanufacturing in product design, life cycle, etc.
• Network into new markets -- Increase demand through encouraging
government agencies to purchase remanufactured products; Reduce
trade barriers.
7
Thank you!
• Questions?
• Contact information:
Matt Bogoshian
Senior Policy Counsel
Office of Chemical Safety and Pollution Prevention
U.S. Environmental Protection Agency
Bogoshian.Matt@epa.gov
8