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Construction equipment manufacturer Caterpillar says remanufacturing is key to becoming more environmentally friendly and boosting revenue, according to The Wall Street Journal (subscription).

What’s happening: Caterpillar has developed a system of inspecting, taking apart and rebuilding old engines. In 2021, Caterpillar processed about 127 million pounds of used equipment.

Environmental goals: Remanufacturing used engines is part of Caterpillar’s broader goal to make its operations even more environmentally friendly.

• According to the company, remanufacturing an engine produces 61% less greenhouse gas than building a new one and requires 80% less water, energy, landfill space and raw materials.

Added benefits: Remanufacturing motors not only helps Caterpillar meet the rising demand among construction companies for more environmentally friendly products; it also helps reduce costs and ease supply chain difficulties when new parts are delayed or unavailable.

Other players: Caterpillar isn’t the only machinery manufacturer that is pursuing remanufacturing. Farm equipment makers AGCO and Deere & Co. have each committed to upping their remanufacturing operations as well.

What they’re saying: “It’s taking a product which is towards the end of its life, refurbishing it and basically putting it back in service and extending the life,” said Caterpillar financial chief Andrew Bonfield. “From a customer’s perspective, effectively they get a refurbished machine, almost as good as new, at a lower cost.”