5 Key Benefits of OEM Remanufacturing for Business

5 Environmental and Economic Benefits of OEM Remanufacturing

Original Equipment Manufacturer (OEM) remanufacturing is an alternative to buying new. It is the process through which existing equipment and products

DRK Lighting
DRK Lighting
7 min read

Original Equipment Manufacturer (OEM) remanufacturing is an alternative to buying new. It is the process through which existing equipment and products, such as lighting fixtures, are restored and reused, rather than being replaced.


OERs (Original Equipment Remanufacturer) are rapidly gaining in popularity due to their ability to extend the life of existing materials, reducing landfill waste and saving money while preserving the heritage of historical pieces. They are helping businesses to achieve their environmental goals.


OERs are specialists offering a number of benefits to businesses, including:


1. Waste reduction


One of the most compelling reasons to engage the services of an original equipment remanufacturer rather than buying new fixtures is landfill diversion. Modern businesses are under great pressure to reduce and report their carbon footprint, and one way of achieving this is by reducing the waste generated by manufacturing.


By remanufacturing existing light fixtures instead of replacing them with new ones, less waste is generated. Reducing the volume of material consigned to landfill also reduces the cost of processing that waste. By limiting spending in all areas of the disposal phase, businesses can make cost savings.


2. Carbon emissions savings


Manufacturing new lighting fixtures is an energy-intensive process, consisting of raw material extraction, refinement, assembly and transportation, all of which contribute to the product's embodied carbon footprint. If that product then has a short in-service period before disposal commences, its through-life carbon footprint can be substantial.


Conversely, an original equipment remanufacturer who reuses existing components can offer businesses significant carbon emissions savings. This is because there is a lower need for raw material production, rendering remanufacturing a more cost-effective solution in both monetary and carbon emissions terms. When remanufacturing takes place on-site, further savings are made by eliminating the need for transportation and handling.


3. Cost savings


There are many areas in which an original equipment remanufacturer can save a business money. These include the upfront cost of purchasing the remanufactured item, which tends to be a better value for money than a new replacement. It is important to note that the vast majority of remanufactured items are sold with a warranty equivalent to that provided with new products. This provides businesses with peace of mind that any remanufacturing defects will be remedied free of charge within that warranty period. Despite having an equivalent warranty to new products, as the cost of remanufacture is lower, these savings tend to be passed on at the point of sale.


Other cost savings are associated with the reduced volume of new raw materials, meaning there is less need to establish a supply chain, fewer manufacturing overheads, limited need for specialist tooling and shipping costs are vastly reduced if not totally eliminated by the ability to conduct on-site remanufacturing.


Most businesses achieve considerably better value for money when they remanufacture existing lighting fixtures, for example, retrofitting LED kits into old fittings, rather than replacing them with new models.


4. Heritage preservation


One of the main instances in which an original equipment remanufacturer is required to remanufacture light fixtures is when conservation rules prohibit replacing architecturally protected fixtures with modern equivalents. For example, when renovating a Grade 1 listed business property, installing modern lighting would alter the character of the estate; therefore, remanufacture is pursued instead to preserve the property's historical status.


It is vital that work carried out in properties of historical interest is handled sensitively to preserve the cultural integrity of the property while enhancing its performance and function.


5. Skills preservation


Remanufacturing requires a slightly different skill set from new manufacturing, as operators must be able to carefully disassemble fixtures, test them, perform quality control checks, and refurbish them to a high standard. They must be able to carefully incorporate modern features without compromising the historical style and nature of the pieces.


Sustaining these skills is vital if original equipment remanufacturing is to be a viable alternative to replacement. Businesses must invest in their remanufacturing technicians, helping support skills growth and establishing a sound succession plan that ensures skills are continually renewed and shared. Investing in this area allows businesses to promote their green credentials, supporting local people and supply chains and pioneering a strong circular economy.


Conclusion


OEM remanufacturing is a win-win for businesses. Extending the life of existing equipment and fixtures reduces waste, minimises carbon emissions, delivers long-term cost savings, preserves historical features and supports skills growth. It is a practical and scalable alternative to new product manufacturing that will deliver impressive economic benefits.

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