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.”