Remanufacturing: The Original Recycling

Ten or 15 years ago, auto technicians would rebuild hard parts for customers right in the shop. Today, that system doesn't work, because consumers don't have time to wait and don't want to pay for the additional labor. Remanufacturing now solves these problems, and as such, it is one of the largest product categories in the automotive aftermarket. The entire remanufacturing industry generates approximately $65 billion in sales, with the automotive segment representing $37 billion of that total.

"This industry is a balancing act, and the business itself is not glamorous," said Rick Andrulis, executive vice president of sales and marketing at Springfield Remanufacturing. "You never sacrifice quality for cost considerations, so the margins are tight."

Remanufacturing begins with a greasy core that needs cleaning. This duty generally falls to entry-level people, who learn the business by doing the disassembly. Cores consist of hard parts such as engine blocks, crank- shafts, valves, rod bearings and cam shafts. High-wear components such as sleeves, gaskets and bearings are always replaced.

Remanufacturing - Part 2:  Cleaner, Better, Cheaper