www.ReMaTec.com
December 2018 / January 2019
REMANUFACTURING INTERNATIONAL NETWORK | KNOWLEDGE | BUSINESS
HOW REMAN CAN (HELP) SAVE THE PLANET
Also Continental: ‘We have to explain reman every day’ MERA and RIC-RIT conference reports Netflix and Spotify are changing remanufacturing
AU TO SY RE MA MP M MA TED OSI ar N & U DE ch 2 UFA R M TA 0 C OB ON ILS -2 TU O IN 1, 2 RI TIS SI 0 NG E DE 19 D
UN research highlights sector’s sustainable role
The world’s no. 1 trade show for remanufacturing
Be part of the world’s leading platform for remanufacturing
ReMaTec 2019 adds extra segments plus a new hall!
Heavy duty and industrial engines
Passenger cars & light commercial vehicles
IT, electronics and wind power
Specialist from the passenger
With representation from the
ReMaTec is expanding its reach
cars & light commercial vehicles
remanufacturing professionals
and welcomes remanufacturing
remanufacturing industry gather
within the Agricultural, Heavy
professionals from industries
to do business with new and
trucks, Busses & coaches, Road
like IT & electronics and wind
existing suppliers and buyer from
machinery and Train industry,
power system remanufacturing.
across the world. With a 100%
ReMaTec is the dedicated
Learn best practices, product
focus on remanufacturing, all key
platform to learn and meet the
development and supply chain
industry players including OEM’s
A-Z in Heavy duty and industrial
solutions from global industry
are present to learn about new
engines remanufacturing.
leaders in Passenger cars & LCV
remanufacturing technology and
and Heavy duty.
products.
Hall 8 4 3
8
3x4
3
1
7
3x8
8.1164
08.682
8.1165
3
08.683
3x7
8.1149
5x3
3
8.1139
4x3
4
3x4
3
8.1169
08.371
3
8.1156
Key statistics on ReMaTec 2019
4
3x4
8.1170
3
08.278
3x4
8.1171
08.279
5
5
8.1142
8.1143
8.1144
8.1129
8.1130
8.1131
08.172 3 8.1161
4
5x3
7x4
5
5
5x3
7
5x3
8.1145
8.1146
8.1147
5
7
08.274 4
h=2.43 m w=2.20 m
08.170 08.165 4
3
8.1148
5x4
7x3
5x4
5
5x3
16,845 m2 5,500
5
8.1160
08.276 4 7x4
08.364 08.275 3 3 5
08.470 8.1128
8.1159
3
5x3
5x3
8.1126
5x3
8 4x8
8.1158
08.366 3
5x3
08.362 08.273 3 3
08.670
8.1125
3
08.277
4 8.1157
ReMaTec Theatre
8.1141
8.1127
4
08.77008.671
4
3x4
08.176
8.1155
10
4x3
4
5
7
08.272 808.163
5 8.1132
3
8.1133
8.1134
08.36008.271
3x8
08.270
08.162 3
8.1135
8.1136
7x3
1
2
4
08.370
4x6
4
8.1154
InnovationLAB 15
8.1140
4x3
4
08.772 08.673 3 3
4
8.1153
10x6
8.1138
4x3
4
3
8.1152
6
08.672608.575
5
08.774 08.675 3 3
8.1137
4 3x4
8.1168
3
08.482
19 15x19
6x3
6
5x3
5
6x3
08.771
8 3x8 8.1167
3
3
3
8.1151
6x3
08.773 3
4
3
6
08.676 3
8.1150
08.780 3
6
2
8.1166
08.480
6 4x6
4
6x3
8.8
08.681
6 7x6
1
7
8.10
08.782
6
Loading Bay h=7.25m w=5.80m
3x4
8.1163
3
3
7x3
8.9
4
160Ø
8.1162
f
roo
08.775 3
2
r
erte Water inv sun
7
8
8.1092
3
8.1093
5x4
4x3
8
8.1080
8.1081
8.1069
8.1082
8.1083
3
8.1055
7
8.1056
10x3
w=1.06 m h=2.28 m E
08.151 3
8.1076
6x3
8.1057
8
8.1058
10x7
8.1059
Food Court
08.146 3 10x3
7
8.1060
20x8
8.1077
6
08.250
10
8.1061
10
8.1062
6x7
10
8.1063
8.1064
Lift
20x10
(lxwxh)
280x160x175
w=2.20 m h=2.25 m
08.338 7
08.7446
8.1041
8.1042
10x6
1
08.741
8.1043
8.1044
08.644 08.546 3 3 10x3
8.1045
08.542
10x3
8.1046
8.1047
8.1050
8.1051
20
10
08.740
08.64008.541
8.1028
8.1029
8.1030
Exhibitors on remanufacturing
80%
Of visitors have purchasing
from all around the world
H = 5,60 mtr.
08.434
08.536 08.431
8.1031
300
14
8,5
3 8x3
w=2.25 m h=2.25 m
H = 5.60 mtr.
3
4
8.5
8.1049
1
10
8.1048
20
8,5x3
10
w=1.60 m h=2.25 m
08.140
14x7 8.1040
3
8.1075
10
10
Total visits
w=2.27 m h=2.30 m
drain
8.1074
08.251
6 10
Total floor space
8.1085 W
08.253
8.1073
08.340
9x3
2
8.1084
08.252 08.342 4 6x4
6
08.341
08.745 3
8.6
8.1098
08.150
9
6x4
8.1072
8
08.440
9
Loading Bay h=7.25m w=5.80m
8.1097
6
8x4
8.1071
8
08.550
3 10x3
8.1096
Kitchen
7x3
4
08.343 4
08.444 4
8.1070
9
8.1054
8.1095
08.344 4
4x4
8.1068
08.650
8.1053
8.1094
8.1111
08.154 3
7
9x4
4
08.554 7 08.447 9x7
8x4
6
6x3
6
08.157
9x4
08.446 4 9
4 9x6
8.1067
Lift
(lxwxh) 2.10X1.60X2.15m
08.156 3 4
5x4
8.1110
08.260 08.155
4
4
8x3
Lift
8.1124
5
08.262 3 8x3
8.1109
5
9
10x6
5x3
8.1123
10
8.1108
8
5
8.1052
8.1122
08.265 8.1107
08.351
8.13
8.7 4
8.1091
4 8x4
8
08.654608.555
3
2
8.1090
3 4x3
4
8.1066
4x3
08.75008.651
8.1121
10
08.450
4 4x3
8.1079
08.653 3 08.752 5x3 3
4
7x3
7
8.1120
08.350
8.1106
8
4x3
4
8.1065
08.747 3
8.1119
8.1105
5
8.1089
3
6x3
8.1118
08.452 4 8x4
8.1104
8
08.261
4x3
08.754 3 6
8x4
8.1103
08.560 08.461
08.656 08.557 3 3 08.657 3
5 3
8.1117
08.467 4 4x4
4 8x3
8
8.1088
4
5x3
E
8.1078
7x3
7
Lift
08.158 3
08.566 08.465 3 4 8.1102
3 6x3
6
08.756 3
10x7
6x3
6
08.66008.561
8.1087
3 4x3
4
8.1116
10
4x3
6x3
6
8.1086
08.761 7 6
8.1115
4x3
08.565 3 4
8.1101
08.662 08.563 3 3
6x3
7
10x4
w=1.06 m h=2.28 m
8.1100
08.663 3
6
08.76008.661
5
08.567 3
6x3
6
7x3
7
8.1114
08.664 3 4
6x3
08.762 3
8.1099
8x3
6x4
6
w=0.84 m h=2.10 m
8.1113
08.667 3 6
4x3
08.763 3
8
4
4
10x3
4
6
w=0.80 m h=2.11 m
7x3
7
08.765 3 4
3
4x3
6x3
08.766 3
8.1112
6x3
6
3
3
6x3
6
w=0.90 m h=2.10 m
3
4x3
4
08.767 3
8.11
3
4x3
4
h=2.26 m h=2.23 m w=1.90 m w=0.89 m
7
8.12
3
8.1032
8.1033
08.234
08.334
8.1034
8.1035
8.1036
8.1037
8.1038
8.1039
8.1025
8.1026
8.1027
8.1012
8.1013
8.1014
8 7
08.739 3
7
6
15x7
7x6
8
8x7
8
8x8
8x8
08.230
8x3
7 8
8.1016
8.1017
8
8.1018
8.1019
8.1021
8.1024
08.330 8
4x8
3
4x8
4
08.532
10x3
4
08.428
08.328 10
08.730 7
8.1003
08.731
8.1004
8.1005
8.1006
8.1007
8.1008
6
8.1009
6 5
6
6x7
6
2x8
8.1000
E
8.1002 W drain
08.226
08.326
F102
4
08.424
9x3
8.1001
h = 2.25 w = 1.05
2
08.530
8.999
h = 2.10 w = 0.90
08.630
08.130 3
6
08.426 8
8.998
8.1015
8 6x8
4
8.997
08.728
8.1011
4x8
6
8.996
E
8.1010
8
7
6x6
7
6x7
8.995
8.4
8.1023
08.430 8
4x7
4
08.634
6
8 8.1022
08.534 7
5x6
5
6x3
8
8
8.1020
08.6366
15
08.735 3
9
3 2 1
3
6
3
5x6
6x3
4x3
5x3
4x3
5x3
3
5x4
8.992
8.978
8.979
8.965
8.966
8.952
8.953
08.122
8.993
authority
h= 2.65 w= 1.89
8.994
7
h= 2.20 w= 0.97
3
08.224 4 4x4
08.222 4 8x4
h= 2.65 w= 1.89
F101
5 h= 2.20 w= 0.97
4 8.980
08.321
5x3
4 4x4
4
08.118 3
08.119 4
8.981
7x3
8x4
7
8
8
8
08.116 3
8.960
8.961
8.962
08.418
08.522 08.417
4 2
3
08.710 3
1
4x3
3
08.319
8.963
8.964
7x3
8.967
08.220
08.320
08.117
4x3
8.932
3
08.416 8.948
8.949
8.950
8.968
8
3x8
3
08.316 8 8.951
3
3x8
3x8
08.114 3
08.216 8
8x3
8.954
3
08.314
7
6
4
8.933
8
5x4
5
8.934
08.214
8
8.935
08.61208.515
8.936
8.937
08.514 08.411
8.938
08.311
3
8.940
8.941
08.310
3
Entrance F
8 8
3x8 8.939
8.955
3x8
6x3
08.517 3
8
4x3
4
08.70608.611
8.947
08.413 4 08.518 7x4 3
4x3
4
4x3
4
6
8.946
8x3
08.708 08.613 3 3
3
6x3
8.945
4
4
3
4x3
4
08.616 08.519 3 3
8.944
4x3
4
8.931
3
4x3
4
8x3
08.108 3
3x8
6x3
8.942
08.210
8.943
6 8x3
4x3
10x3 8.919
08.511 3
8.920
8
8.921
8
8x9
08.401
4
8.918
8.922
8.924
7 3
08.700
8.910
8.928
8
8.912
8.930
08.102 3
8.913
4
3x6
08.300
3 8.914
5x3
08.205
6 3
Pantry
8.911
5
8.929
08.205A
Afzuig installatie
3x7
08.600
8.927
8
08.60208.509
10 3x10
8.926
3x4
08.201
5
4 3
3x4
08.200 8.915
Water
08.100
4 3
h=2.85
3
8.925
Food Court
4
08.702 08.701
8.917
08.104 3
8x6
5x3
08.302
8.923
4x3
10
Loading Bay h=4.50m w=6.50m Trucks not allowed
6
3x4 h=2.85
8x6
9
3
5
3
08.101 160Ø
0
6
08.707 3
8.916
sunroof inverter
9.26
9.25 6
5
9.24
1
9.23
13,5 5x13,5
4
4
2
3
1
6
5
2
3
1
9.21
9.1864
9.1865
5 12
Elevator
wxdxh 1.2x2.3x2.4 / 9 Pers Reaching level +0 and +1 Max. 675 kg Door 0.9x2.3m
9.28
8 8x8
9.27
w=2.00 m w=2.00 m w=2.00 m h=2.20 m h=2.20 m h=2.20 m
2
Hall 9 9.1863
9.21
8.991
5
8.959
6 4x6
4
8
9.22
5x3
08.324
8.977
7
08.721
8.3
8x4
4
08.524 08.419 3 4 5
8.990
8.976
08.323 4 5x4
08.420 4 5 8.975
4x4
4 5x3
5 8.958
08.62008.521
h= 2.20 w= 0.97
7x8 8.989
8
5
8.974
4x3
4
08.624 08.523 3 3 5
8.957
8
8x4
8.988
08.422 4 5x4
8.973
4x3
4 5x3
5
08.72008.621
4
6x4
6
8.987
4x4
4
08.526 08.421 3 4
8.972
4x3
4 5x3
4x3
4
8.971
4
6x4
6
8.986
08.528 08.423 3 4
4
08.626 08.622 3 3
08.722 08.623 3 3 5 8.956
4
6x3
6
8.985
4x3
4
08.625 3 8.970
5
12
Loading Bay h=7.25m w=5.80m
3
6x3
6
8.984
08.628 08.527 3 3
5
08.724 3
h = 2.25 w = 1.05
3
5x3
4
8.969
12x3
6
8.983
08.726 3 4x3
4x3
08.725 3
3
6x3
5
8.982
08.727 3 4
h=2.6 b=3.1
6
09.400
8x12 9.1861
3
8
09.411
3
4x3
4
4
8x3
4x4
4x7
4
09.4036
09.401 6
4x6
4x6
4
9.1856
9.1857
4
9.1858
09.302
09.306
09.310 09.308 4 3
4x3
8x3
4
09.300
20
4x4
8x20
4
09.309 3
09.307 4
8
9.1852
4x3
9.1854
8
4x4
4
9.1853
9.30 Elevator
wxdxh 2.2x2x2.4 /21 pers Max.2500 kg, max Door 1.4x2.3m
4
09.21409.212
9.1851
7
4x5
4
3x6
4
09.314 09.312 3 3
8
4x3
3
4
9.29
9.19
3
4x3
4
4x3
09.315 3 4
3
4x3
5x3
09.316 3 4
5
5x3
5
09.409609.407
9.1855
3
5
3
5x3
5
9.1859
09.413
Corridor Hall 09
9.20
9.1862 9.1860
8
09.210 09.208
09.200
Elevator wxdxh 2.2x2x2.4 /21 pers Max.2500 kg, max Door 1.4x2.3m
09.217 3 4x3
9.1849 9.1847
9.1850
9.1848
4 5
09.216 3 4x3
9.18
4x3
4
09.114
4
09.2036
4x6
4
4
09.111
9.17
4x6
4
4
9.1844
09.112
09.108
9.1845
09.106
09.102
09.100
4
6 3
09.201 6
4x6
3x6
3 9.1840
9.1841
6
9.16
4x7
4
09.207 6
4x6
9.1843
09.116
7
4x5
4
09.2096
4x4
4
4
5
4x7
4
09.2134
4x6
7
4x5
4
09.2156
9.1846
09.117 3
5
4x5
4
4
5
4x5
5
4
3
9.15
2
1
6
5
4
3
9.14
2
1
2
Organised by:
AD2019_ReMaTecNews_1.indd 1
09.107
4 3
3x4
09.105
4 3 9.1842
3x4
09.103
4 3
3x4
09.101
Shaft
1
9.13
Loading Bay h=4.50m w=6.50m Trucks not allowed
3x4
9.12
9.11
w=2.00 m w=2.00 m w=2.00 m h=2.20 m h=2.20 m h=2.20 m
Crossroad Hall 09-10-11
+15%
m2 growth from 2017 to 2019
In association with:
Secure your place now! Contact Yorien de Ruijter at y.d.ruijter@rai.nl or + 31 611716476
ReMaTec visitor and exhibitor statistics are calculated in accordance with the rules of the UFI – the Global association of the Exhibition Industry and audited by an independent accountant.
09-07-18 11:06
EDITORIAL
‘Reman needs to get the message out there: we have a planet to save and we’re part of the solution’
SO
…what has the pretty picture of our blue planet on the front cover got to do with remanufacturing? Well, everything. Because it’s true: remanufacturing really can save the world. Oh, alright – not on its own, obviously. But the United Nations Environment Programme’s International Resource Panel report makes clear that reman has a key role to play in helping to preserve scarce natural resources. It is an excellent piece of work: comprehensive, smart and genuinely practical – a toolbox for all those who have been trying to explain the environmental and business benefits of remanufacturing but did not have the figures to back up their arguments.
We do now. Lead author Dr Nabil Nasr kindly took time out to talk to ReMaTecNews about how his work has led to some surprising enquiries – and where he thinks we might go from here (p9). The way forward is clear: reman needs to expand its messaging and become part of the wider conversation about using the planet’s resources wisely. This was the mood music at the well-attended conferences held by RIC-RIT (p14) and MERA (p23). At the first of these, Andrew Morlet of the Ellen MacArthur Foundation had a sobering message for the remanufacturing industry. He told delegates in Rochester: “No one knows what reman is: you all have a communications issue. It’s time to change that.” He sees the value of reman, but there is certainly some way to go before the person in the street understands and accepts it. However, something is starting to happen. RIC’s next global Reman Day will be held on April 11 next year – and if you hurry, you can design a t-shirt to celebrate it (p6). Whether you know it or not, we are pushing towards the outskirts of the zeitgeist. There’s still a long way to go, but people in high places are at least talking about reman - feels good, doesn’t it? And finally, if you have the chance to take some time off over the upcoming holiday season, then please try to relax and enjoy it. 2019 looks like being a good year for reman and we all need to be ready to take the opportunities it offers. After all, we have a planet to save… Adam Hill, Editor ahill@ropl.com
Email your comments and stories to editorial@rematecnews.com
Published by RAI Amsterdam B.V. P.O. Box 77777, 1070 MS Amsterdam The Netherlands In association with Route2Market Editor Adam Hill: ahill@ropl.com Phone: +44 (0)7931 502947 US correspondent Denise Rondini: drondini@gmail.com Asia-Pacific correspondent Tim Maughan: tim@britishjournalistinjapan.com Route One Publishing Managing Director Andrew Barriball: abarriball@ropl.com ReMaTecNews: advertising manager Sara Clark Phone: +44 (0)1732 445302 sara.clark@talkmediasales.co.uk Project & Production Manager Miranda Le Croissette: mlecroissette@ropl.com Phone: +44 (0)1322 612080 Contributors in this issue Andrew Bardin Williams, Rogier Bos, Wolfgang Gerke, Michael Haumann, Niels Klarenbeek, Denise Rondini, Volker Schittenhelm, Alex Tong, Joseph Zulick Marketing Communications & PR Evelien Feijen: e.feijen@rai.nl Phone: +31 (0)20 54915 81 ReMaTec & ReMaTec Asia: sales manager Yorien de Ruijter Phone: +31 (0)20 5493075 Fax: +31 (0)20 5491889 advertising@ReMaTecnews.com Publisher Evelien Feijen (responsible under Dutch Press Law) e.feijen@rai.nl Design, Production & Printing Route One Publishing Ltd Copyright RAI Amsterdam, Amsterdam, The Netherlands Reproduction No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopied, or otherwise, without the prior written permission of the publisher, RAI Amsterdam B.V. Subscription magazine & eNewsletter www.rematec.com Change of address info@ReMaTecNews.com ReMaTecNews online www.rematec.com/news Circulation Approx.13,500 readers per edition. The magazine is delivered on a controlled circulation basis to recipients in Western Europe, Eastern Europe, Africa, North America, South America and Asia.
ReMaTecNews
03
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CONTENTS
‘You all have a communications issue’
Everyday people Continental’s Amir Mohseni explains why remanufacturing is a subject that he is always happy to talk about
Tough words and a call to arms at the RIC-RIT World Reman Conference
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20
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COVER STORY Costing the earth New research from the United Nations outlines why remanufacturing is vital in the fight for sustainability
When AI meets reman Current advances in technology are going to make as much impact as Henry Ford’s assembly line did a century ago
19
06
News
12
Viewpoint
13
Millennial impact
Robotics and automation symposium update; Trump ‘should use remanufacturing to close trade deficit’; plus how to design a t-shirt for Global Reman Day
23
Working together
27
Review of 2018
28
Into the final straight
31
The value of education
Human-robot collaboration is possible now - but we have to unlock the potential
The trend to hire or lease assets rather than own them will affect everything - and could decimate the aftermarket
Email your comments and stories to editorial@rematecnews.com
The importance of collaboration was among the key takeaways from MERA’s Sustainable Manufacturing Conference
This was the year when love in all its forms was in the air in the reman industry. Spoiler alert: robots look set to be a big part of 2019...
APRA Europe pledges better services and more value for members as the process of becoming a distinct legal entity nears completion
Recruiting skilled reman workers is a big problem but a German scheme could provide a model for the industry ReMaTecNews
05
NEWS
Automation key to reman’s future
C-ECO HELPS DRIVE EU PROJECT Circular Economy Solutions (C-ECO) is taking part in a European Union project to develop circular economy business models for electric and hybrid electric vehicles (E&HEV). The three-year CarE-Service initiative is looking to remanufacturing technologies and services – such as reverse logistics - to provide more sustainable ‘end of life’ practices. C-ECO’s CoremanNet brand will identify and evaluate highvalue E&HEV used parts and components such as Li-ion batteries, metal parts and techno-polymers.
Automation is increasingly part of reman operations, such as on this line at Budweg While the ‘robotisation’ aspect of the event has attracted attention, its focus on automation of reman is also important, Weiland
Your design here Calling all artists! The Remanufacturing Industries Council (RIC) is running a t-shirt design competition to publicise next year’s global Reman Day. Design submissions – which should ‘represent the remanufacturing industry’ - should be sent to info@ RemanDay.org by close of business on December 11. Entries will be judged by the RIC’s Marketing & Membership Committee and the RIC Remanufacturing Association Alliance. Judging criteria include originality and relevance to reman and how eye-catching it is, as well as practical considerations such as ease of reproduction and whether it is ready to print. Prizes, donated by America’s Remanufacturing Company, will be awarded to first, second and third place winners – who will be notified by email no later than January 3, 2019. This year, more than 120 Reman Day events were celebrated in 17 countries. • Global Reman Day will be held on April 11, 2019. For more details, go to: www.remanday.org/t-shirt-design-contest
Ellen MacArthur Foundation backs Circularity 19 The Ellen MacArthur Foundation is to be principal partner at a new circular economy (CE) conference in the US. Circularity 19 will be held in Minneapolis on June 18-20, 2019, and is organised by sustainability
06
www.ReMaTec.com
insists: “Automation is not just about robots, which are only one element in the production process.” The desire for this new
technology is there. “Many remanufacturers are very keen to automate their production, though - not yet using robots,” says Weiland. Speakers include two current Remanufacturer of the Year Award holders – Thijs Jasink of Alec and Mike Hague-Morgan of Autocraft – as well as one distinguished former winner: the recently retired Professor Rolf Steinhilper of Bayreuth University.The symposium will be held on March 20-21, 2019, at Trier University of Applied Sciences environmental campus in Birkenfeld, Germany. •Viewpoint, p12
SFIO CRACHO/Shutterstock.com
Next year’s Symposium on Automated and Robotised Remanufacturing represents the beginning of a new era for the sector, according to Fernand Weiland, co-organiser and reman industry veteran. “The remanufacturing symposium is only the start of a new evolution - i.e. for the research institutes to learn more about the needs of the reman industry and for the reman industry to learn the opportunities which automation and robots offer,” he told ReMaTecNews. “I believe this is only but the right first step and more workshops, meetings and symposiums must follow.”
organisation GreenBiz. The conference will focus on a variety of reman-related subjects such as design, logistics and standards. Conference organiser Joel Makower emphasises CE’s commercial benefits and says
the event will “help define and accelerate this opportunity, elevating concepts, companies and best practices, inspiring and informing participants on how to transform their strategies and operations”. • See Diary, p30
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9
NEWS
Trump ‘could help reman with taxes’
Three key aftermarket tre nd that challenge s warehouse distributors and wholesalers parts can help overco
me business obstac
les
© Adrian825 - Dreamstime.com
How remanufactured
By APRA Europe
and ReMaTec (RAI
Amsterdam)
Reman could ‘help solve US trade deficit’ Remanufacturing could help solve the US’s trade deficit, according to Clyde Eiríkur Hull, professor of management at Rochester Institute of Technology. Hull writes on The Conversation website: “President Donald Trump is fighting the wrong fight in his ongoing trade war with the rest of the world. That’s because it’s premised on the old-school notion of the linear economy in which someone in another country, such as China, digs up raw materials and sends them to a factory, where they get turned into the finished product and shipped to the US.” Money therefore leaves the US economy and flows to the countries where the product was made, thus “creating the trade deficit Trump despises”. But adopting
Evan El-Amin/Shutterstock.com
WHITE PAPER EXPLAINS REMAN BENEFITS
circular economy principles would help solve this issue, Hull believes – and suggests Trump could employ a ‘carrot and a stick’ approach. “The carrot involves setting a standard of design to ensure all products are made with future use in mind, as well as using his influence to encourage Americans to buy goods remanufactured in the US,” Hull writes. The ‘stick’ would be tax policy, with the US government taxing products that cannot be converted into raw materials after use, as well as those made with less than a certain percentage of reused components. This figure would be set to gradually increase, and tax revenue could be used to support research into remanufacturing, Hull concludes. • Trade wars are bad for business, p17
MERA symbolises new approach MERA – The Association for Sustainable Manufacturing, has unveiled a new logo which emphasises reman’s place in the circular economy. The organisation has taken the well-known recycling logo and added one extra arrow. “We’re passionate about helping the perception of reman catch up with the
reality,” says MERA president John Chalifoux. “And we’re doing it with the facts on our side, and some good old-fashioned marketing.” He said the three ‘Rs’ of the environment – reduce, re-use, recycle – are captured in the recycling symbol: “As we continue our work to raise the awareness and acceptance
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of remanufacturing – to change the narrative, if you will – MERA and its members have added a fourth ‘R’ – reman - to the discussion. As with the other Rs, reman minimises the impact on the environment, but it should occur before we recycle: Reduce. Reuse. Reman. Recycle.”
APRA Europe and ReMaTec have together produced a white paper exploring the benefits of reman to the aftermarket. Three key aftermarket trends that challenge warehouse distributors and wholesalers looks at the environmental and business benefits of reman, and includes advice on setting up a core returns operation. Subtitled ‘How remanufactured parts can help overcome business obstacles’, it seeks to explain how reman can help to offset decreasing demand for spares, while tapping into consumer demand for better value – and offering marketing opportunities by being environmentally friendly. www.rematec.com www.apra.org/europe
• MERA Sustainable Manufacturing Conference: report, p23
ReMaTecNews
07
NEWS
Borg Automotive: meeting demand for reman parts
Borg Automotive to create new reman facility in Poland Borg Automotive is to establish a new remanufacturing facility in Lublin, south-east of Warsaw. It is expected to be operational in the first quarter of 2019 and will initially have about 50 employees. The Danish company says the new Polish venture will help meet “growing demand for remanufactured automotive parts”. The new site will be set up in existing business premises which have been used for industrial production. Borg
already has a production site in Poland, which employs 1,300 people and is based in Zduńska Wola, south-west of Łódź in the central area of the country – but Borg says it is running out of capacity. The European market for remanufactured automotive parts has recently grown 7% each year, it adds. “This is the reason why we have been working on a plan to increase our capacity, which we will now commence,” explained Borg CEO Kim Kruse Andersen. “The production capacity of
our current factory in Poland is almost fully utilised. We work with 15-month forecasts, and we project that our current factory will reach its full capacity in 2019.” Owned by the Danish industrial conglomerate Schouw & Co, Borg specialises in the manufacturing, sale and distribution of reman automotive parts to the European market. It operates three different brands: Lucas, Elstock and DRI – the latter two are own-brand products.
SARA CLARK JOINS REMATECNEWS ReMaTecNews has appointed a new advertising manager. Sara Clark will be the point of contact for queries regarding magazine advertising and is tasked with developing new business. Based in the UK, she has many years of experience in businessto-business publications across a range of sectors. Clark said: “I am really looking forward to the challenge of meeting the needs of our clients in this exciting, growing global industry.” Yorien de Ruijter, sales manager of ReMaTec and ReMaTec Asia, will continue to be in charge of sales around RAI’s exhibitions, which ReMaTecNews supports. Sara can be contacted on +44 (0)1732 445302 or by email at sara.clark@ talkmediasales.co.uk
NeoBrake celebrates 30th birthday US brake remanufacturer NeoBrake Systems is 30 years old. The company opened its doors in Milwaukee in 1988 and says it plans to celebrate its birthday year through to October 2019, with special promotions and “anniversary merchandise and gifts”. Founder and president/CEO Rick Ballew, who managed a reman shop in the city for United Brake Systems
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www.ReMaTec.com
Neobrake is now 30 – but it all started with this simple tagline before setting up on his own, remembers when the use of asbestos was discontinued in 1982. “I saw brake material
go from consisting of three basic components to over eight with non-asbestos formulas,” he recalls. “But no
one has been able to replicate the wonders and performance of asbestos fibre, but we’ve come as close as anyone, and that’s something we pride ourselves on.” The privately-owned company remanufactures heavy-duty brakes and asbestos-free brake linings and pads, as well as supplying wheel-end components, brake shoes and accessories under the Matrix brand name.
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Somchai Som/Shutterstock.com
RESEARCH
SAVING THE WORLD… one remanufactured component at a time
H
ow much is remanufacturing worth to a company? How much does it save the environment? How can you replicate reman systems? What do policy makers need to do in order to encourage wider take-up? Before October, these questions were tough to answer. Since the publication of the United Nations Environment Programme (UNEP) International Resource Panel (IRP) report on the circular economy, they have become easier. This is because Redefining Value - The Manufacturing Revolution: Remanufacturing, Refurbishment, Repair and Direct Reuse in the Circular Economy is the first attempt to quantify the financial impact of activities – such
as reman – which are designed to extend the life cycle of products. Taking various examples from different countries, it examines the impact of remanufacturing, refurbishment, repair and reuse – the four so-called ‘value-retention processes’ (VRPs). The report looks at three sectors – industrial printers, vehicle parts and heavy-duty and off-road (HDOR) equipment – and demonstrates how VRPs (including reman) decrease the overall product cost, reduce the amount of new material needed, lower emissions, cut waste and create jobs. (On the latter point, remanufacturing actually increased skilled labour hours by up to 120% in comparison to linear production). ➤
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Image: Sue Weisler/RIT University News Services
One of the biggest names in remanufacturing, Nabil Nasr, is lead author of a UN report which answers several burning questions. He tells Adam Hill about some of the key points of the research
Nabil Nasr
ReMaTecNews
09
RESEARCH
“We still have a lot of work to get the average person to understand – and to get acceptance of reman by the consumer” ➤
VRPs “may not always be the optimal circular economy strategy for a firm to pursue, and the appropriateness of VRPs must be assessed on a productby-product basis”. But where they are the right course to follow, VRPs “generate substantially higher economic, environmental and social value”. This is powerful stuff for an industry such as remanufacturing, which is struggling to make its case in a world which doesn’t really understand what the word means. The report is coauthored by Nabil Nasr, associate provost and director of Rochester Institute of Technology’s Golisano Institute for Sustainability (GIS), and Jennifer Russell, a former PhD student in sustainability of Nasr’s at GIS. In a presentation at the RIC-RIT World Remanufacturing Conference, Russell explained that it is critical to differentiate the level of value versus the level of cost that these processes provide manufacturers. She believes the term ‘VRP’ will be key to bringing the remanufacturing story to a wider audience - particularly to business leaders who need to show how reman can create economic opportunities for their companies in addition to the environmental benefits. The report urges businesses to adopt VRPs – including reman - if they are serious about “taking a leadership position on sustainability and circular economy and interested in the economic and environmental benefits that can be achieved”. These include cutting industrial waste by 80-99% in some sectors and reducing greenhouse gas emissions by 79-99%. The report also seeks to understand why adoption levels of VRPs are low around the world – and to identify opportunities to meaningfully alleviate barriers and increase adoption. It has certainly caught the imagination since it was fully unveiled in October at the World Circular Economy Forum
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COST AND ENVIRONMENTAL SAVINGS FROM REMANUFACTURING Across the three areas of reman it covers, the report identifies the following cost savings from remanufacturing various products: HDOR engine: 23% Production printing press: 18% Vehicle engine: 15% The report also finds that comprehensive refurbishment saves up to 44% of the product cost. Repair and reuse saves 80-95% of costs for industrial printers, 50-80% for vehicle parts and up to 95% for HDOR equipment. The savings derive in the main from avoiding new materials and process energy costs. In some cases, the report points out, “significant job opportunities are created while still saving costs”. Perhaps most attractively, from a commercial point of view, cost estimates are based on the commercial product cost for the customer: “Hence, savings and profitability can be even higher for the producer.” Across the case studies in the report, reman reduces environmental footprints of products “substantially” compared to a linear economy. Remanufacturing means that the following are avoided:
79-99% of embodied material energy and emissions 57-87% of process energy and emissions 90% of production waste The other VRPs (refurbishment, repair and reuse) “can offer significant reduction of environmental impacts per production cycle”. But, crucially, they retain less value. The environmental case for remanufacturing is, therefore, a compelling one. Source: United Nations International Resource Panel
in Yokohama, Japan. “It’s been very interesting,” Nasr tells ReMaTecNews. “There are a lot of policy makers – specifically from the European Union – who are very interested to learn more on the policy actions. And a lot of industry is very interested.” Nasr has also had enquiries from companies which are not currently involved in remanufacturing but want to understand more about the different business opportunities laid out in the report. “A lot of their questions are related to the models: how it would work, would it be cost-effective, and so on,” Nasr explains. The report shies away from offering a blueprint since there is no one-size-fitsall approach. But, he points out: “Now
we can say: ‘In this sector, this is how it works, under these circumstances’.” Currently, remanufacturing accounts for only 2% of production in the US, and 1.9% in Europe. The surprisingly small figures mean that – if nothing else – there is certainly room for growth. The report suggests that the low adoption rate is explained by manufacturers having limited knowledge about the possibilities in the value chain, for example with reverse logistics. “VRP adoption can further be complicated by regulatory barriers, a lack of customer awareness, limited technological capacity, or inadequate collection infrastructure - barriers that can be overcome through business model innovation, collaboration and engaging policy makers,” it adds.
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RESEARCH
“I’ve been in the industry for 29 years and there is a lack of information about the potential contribution of remanufacturing at local, country and global level,” Nasr confirms. “So many organisations definitely didn’t understand how a model could be developed.” The fact that the work of other sectors, doing different things, could be applied to their own business has been a revelation to some. Putting concrete figures onto reman’s contribution was crucial, he believes. “We thought this would be a gamechanger. We anticipated that it would help because now people have evidence at a global, local and sector level. That is going to get their attention. Some of it was that companies did not know there was going to be such a huge value in remanufacturing.” For managers keen to convince their own directors of the importance of the circular economy, the report provides some useful input. “The frustrating thing is that you needed to bring the potential value to their attention,” says Nasr. “That means you can have the discussion at the higher level with decision makers.” Collaboration between companies is required if circular economy models are to be scaled up, the report finds. Policy makers have to be engaged if systemic barriers such as regulation which constrains reman and other VRPs are to be overcome. In much the same way, policy makers are the key to helping with consumer awareness of reman’s benefits and will also have to
be shown the benefits of the circular economy if the lack of infrastructure and technological capacity are to be tackled. And Nasr is certainly clear-eyed about one of the main challenges that remains for the remanufacturing sector. Consumer awareness is a problem wherever you look, the report warns: “Customer interest in and awareness of VRPs needs to be increased, specifically regarding the quality of remanufacturing.” “We still have a lot of work to get the average person to understand – and to get acceptance of reman by the consumer,” Nasr concludes. “That’s one of the barriers we have.” But this report is a great start towards addressing that – and many other – issues. • The full report can be downloaded at: http://www.resourcepanel.org/reports/ redefining-value-manufacturing-revolution • Additional copies can be ordered via email: resourcepanel@unep.org • Editorial, p3
Global snapshot Industry leadership will be “essential to guide and urge policy makers to tackle systemic barriers”, the report urges. Companies in the US and Germany encounter lower barriers to scaling VRPs than those in Brazil and China – but they are not without their problems. US: Education and research could be optimised, as could clusters and networks which support VRPs. Germany: Industry and policy can improve information and communications technology (ICT) infrastructure, as well as regulatory conditions, that, for example currently obstruct the trade of VRP industrial printers. Brazil: Regulatory barriers are significant, for example in “obstructing trade in component parts necessary for VRPs”. There are also high technological barriers, such as a lack of ICT infrastructure. China: While technological barriers are lower, they still need to be improved, the report says. “Regulatory factors are most constraining,” it goes on. Regulatory barriers in China and Brazil prevent the movement of inputs to VRP processes (e.g. cores), as well as the movement of finished VRP products, into and within these economies. Source: United Nations International Resource Panel
Remanufacturing accounts for only 2% of production in the US, and 1.9% in Europe
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ReMaTecNews
11
NOTES & COMMENT
ReMaTecNews
VIEWPOINT
“Robotics is not science fiction: human-robot collaboration could make reman easier” Wolfgang Gerke
I
n recent years, there has been a paradigm shift in robotics. The main capability of robots was to lift heavy parts and work accurately, housed in special operator-separated safety areas. Robots are now lighter and more sensitive; in a safe mode of operation, they can work with people, no longer separated by protective fences. Human-robot collaboration results in work systems where the advantages of humans, e.g. the ability to perceive and to improvise, can be combined with the tirelessness and accuracy of the robot. As a result, the production of goods in small quantities but with a large number of variants, which is increasingly required, can be executed with robots faster and less stressfully than for humans. Trier University of Applied Sciences has investigated disassembly – which is involved in many processes, including remanufacturing - as an application of human-robot collaboration.
Fully automated disassembly lines are rare, because it is much harder to automatise than assembly. At the end of a product’s life, we have to cope with dirt, wear and damaged - or missing – parts, as well as manipulations, such as improvised fixes, which are not obviously visible. This unpredictability prohibits further automation. Even with better sensor technology, it would be unfeasible, or highly expensive, to fully automate for every possibility. Other challenges include small lot sizes or individualised products, and - especially in central waste-sorting plants - a lack of information about product structure. Thus, disassembly workplaces stay unautomated - resulting in a bad situation for people who remain exposed to health problems due to their heavy workload. In addition, the economic viability of disassembly processes is greatly reduced by the substantial amount of manual labour required. Consequently, important concepts for environmental protection, such as remanufacturing, cannot spread wider into industry. The use of robot-based assistants would be a compromise between automation and manual labour. Only humans have the cognitive abilities to identify and handle unexpected situations – but robots can provide assistance with power and endurance over the complete disassembly process and thereby improve the ergonomics of the workplace. Multi-skilled robots can take over automatable tasks, such as unscrewing; or support the execution of tasks, such as the handling of heavy parts. For remanufacturers, human-robot collaboration isn’t the future – it’s already possible. But we have to unlock the potential. Professor Wolfgang Gerke Trier University of Applied Sciences
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www.ReMaTec.com
ReVisits... It feels like a different age. On the APRA page, a decade and a half ago, the organisation’s European division founder, Fernand Weiland, was writing about his lobbying efforts with the European Commission in Brussels. He sighed: “I often find it difficult to make clear to them what remanufacturing is all about.” At least now, due in no small part to his own efforts, legislators and policy makers – from the US to China - ‘get’ remanufacturing. Indeed, the European Union is one of the industry’s strongest advocates in political terms.
APRA European Division
NEWS
Remanufacturing (not yet fully) legally recognis ed
In my lobbying activities vis-a-vis, for example, the European Commission in Brusse ls, but also with regard to discussions with national legislators, I often find it difficu lt to make clear to them what remanufactu ring is all about. By and large, I believe, the concept of remanufacturing does not feature in national or international legislatio n - because legally speaking it does not exist. This is a real challenge for our industry. Consequently, for quite some time, I have been frequently commun icating what remanufacturing stands for to the European Commission. In my view, people in the Commissi on now have a clearer view of what we are doing. Why is this importan t? Imagine that a European directive relating to the parts business is drafted to protect new units but turns out to be detrimen tal to remanufactured units simply because legislators are unaware of the existence of remanufactured parts. Such a situation could conceivably occur if, e.g. the existing EU End of Life Vehicle (ELV) directive is wrongly interpreted at national level, thus excluding safety parts such as remanufactured brakes from being sold in the market. It is clear that we must be vigilant in case an EU member state were to implement a wrong interpret ation of this nature. At the same time, legally speaking, we are making progress in areas such as trademarks, which could pose other threats to European remanufa cturers.
Under the guidance of Dr. Gerhard Riehle we have drafted a Recommended Trade Practice, which helps remanufacturers of OE branded products to avoid potential costly legal cases if they follow the recommendations. In his attempts to place the recommendations on an even firmer ground, Gerhard Riehle recently published his book, “Trademark Rights and Remanufacturing in the EU,” an excellent work (see ReMaTec News April 2004 page 18), which attracted considerable attention in the legal world. I recommend it to you all to buy and read it as well as asking your legal advisers to read it togeth-
By Fernand Weiland, European Director, APRA
er with our Trade Practice. It will make clear how you can expect to handle any trademar k threat that you may be faced with now or in the future. Please, support us in this battle for recognition. Your association acts globally, but you must act locally.
European Divisio Las Vegas during n meeting in the Big R
If you decide to visit this Year’s Big R show in Las Vegas (see also page 10), you should not miss the European Meeting which will take place at the Riviera Hotel on Saturday 30 October at 13:00. You will meet Euro-
pean and American board members, you can exchange views and make contribut ions to the further developm ent of our association and industry.
28 l ReMaTecNews
This page from the archives reminds us that this was not always so, and that it is therefore possible to change people’s opinions. With that in mind, now we just need to make the ordinary person in the street understand and accept reman. Weiland ended his column with a plea: “Please, support us in this battle for recognition. Your association acts globally, but you must act locally.” Plus ça change… as they say in Belgium and Luxembourg.
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REMAN TRENDS
Swapfiets: Millennials are not so interested in ownership as previous generations – and this trend will have an impact on everyone, including automotive remanufacturers
The reman times, they are a-changin’
T
here is a silent revolution going on in the streets of Amsterdam. Tourists and business travellers have always been used to being cautious of the many cyclists riding the streets. But next time you’re in the city, you should direct your attention to the colour of the bicycles’ tyres: I’m 99% sure that you will find numerous cyclists with a distinctive blue front tyre. These are bicycles owned by a mobility service company called Swapfiets (‘Swap Bicycle’). Swapfiets riders do not own their bike, they pay a monthly subscription (starting from €15 per month). If the bike is damaged or stolen (yes, it still occasionally happens) the Swapfiets app on your smartphone will point you to the nearest replacement centre - which is often a local bicycle repair shop. At no extra cost, the bike is replaced by another one and off you go.
Immensely popular Swapfiets is immensely popular among students and millennials. They don’t care so much about possessions and are used to having a subscription for just about everything. If you pay a monthly fee to Netflix, Dropbox, Spotify, razor blade suppliers (really!) then why not pay one for a bike that never lets you down? The fact that the annual subscription of €180 is more expensive than a reliable second-
hand bike from the bike shop seems to be collectively neglected. I hear you say: ‘Why is this Dutch bike story relevant to remanufacturing?’ The answer is simple. If a generation of smart, well-educated early adopters is used to not owning a bike and not bothering about possessions, do you expect them to buy a car as soon as they have a driver’s licence? Of course not.
“The independent aftermarket could be decimated as vehicle manufacturers would control production, fleet management and vehicle maintenance” Shared car services are just the beginning. If you’re stuck in traffic it doesn’t matter whether you drive a luxurious sports car or a small budget sedan. You just want to get from A to B. This development will change the narrative about the automotive industry.
Opportunities ahead If drivers do not own their cars, vehicles are owned by vehicle manufacturers and their financial leasing subsidiaries. This will have a massive impact on the automotive remanufacturing industry.
Email your comments and stories to editorial@rematecnews.com
pic credit: Swapfiets
The trend away from car ownership will have a massive impact on the automotive reman industry. ReMaTec’s Niels Klarenbeek urges remanufacturers to treat this as an opportunity to stand out from the crowd
Core returns would be just standard practice, not a challenge. The independent aftermarket could be decimated as vehicle manufacturers would control production, fleet management and vehicle maintenance – as well as operational data. Core suppliers and independent remanufacturers should find their own niche or start allying themselves with original equipment manufacturers to work as a contracted remanufacturer. ReMaTec events have always been attended by dozens of famous brands and their reman programme managers. Manufacturers of passenger cars, light commercial vehicles, trucks, buses and even non-road moving machinery they’re all there; looking for latest trends and developments; looking for new partnerships and alliances; looking for product improvements based on the remanufacturers’ expert knowledge of their parts and components. So stand out from your competition and get into a dialogue! There are plenty of opportunities ahead.
ABOUT THE AUTHOR Niels Klarenbeek is director, remanufacturing & refurbishment, at RAI Amsterdam n.klarenbeek@rai.nl ReMaTecNews
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RIC-RIT WORLD REMANUFACTURING CONFERENCE: REPORT
‘No-one knows what reman is: you all have a communications issue’
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Reman stakeholders met up in the US to hear a sombre message from the Ellen MacArthur Foundation – followed by a passionate call to action. Andrew Bardin Williams reports from Rochester (pictures by Alex Tong)
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RIC-RIT WORLD REMANUFACTURING CONFERENCE: REPORT
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ore than 200 leaders in the remanufacturing industry gathered in Rochester, NY, for the annual World Remanufacturing Conference. Jointly organised by the Remanufacturing Industries Council (RIC) and Rochester Institute of Technology (RIT), the conference included an intensive, highly-collaborative exploration of best practices, emerging trends and issues of critical importance to the remanufacturing industry. “The future of the world depends on sustainability, and remanufacturing is a central component of sustainability,” declared Dr. David Munson, president, RIT, in his welcome address, highlighting the key point to come out of the conference. Speaker after speaker reiterated his assertion that the remanufacturing industry has reached a tipping point and needs to expand its messaging and join the larger discussion about using our planet’s resources more wisely. An important distinction was made by several speakers, most notably Nabil Nasr, CEO of the REMADE Institute, to compare remanufacturing and its benefits and impacts not to new product manufacturing but to other sustainable processes such as repair and recycling. Remanufacturers and reman’s supporters need to show the difference in value of remanufacturing versus these other, better-known but less impactful, processes, he said. One company that has definitely seen the value in remanufacturing is Caterpillar. During her keynote address, Tana Utley, vice president, large power systems division, said that Caterpillar is proud to pass this value onto its customers. “[Remanufacturing allows us to] provide the same performance of new at a fraction of the cost,” she said.
During the second keynote address, Andrew Morlet, CEO of the Ellen MacArthur Foundation, implored the industry to bring the remanufacturing story to a mass audience. He invited members to join the foundation in its efforts to educate the public on its concept of the circular economy. He ended his talk by challenging the industry - specifically the people in the room - to work together to co-promote remanufacturing as part of the circular economy.
Breaking out As expected, breakout sessions were more granular, focusing on specific issues and solutions that streamline the remanufacturing process. Topics ranged from logistics, cleaning and additive technologies to trade policy and workforce development. Members also networked at several events throughout
the conference, forging bonds and partnerships across companies and industries. A select few even got to don hard hats and tour Alstom USA’s manufacturing facility where the company remanufactures mobility solutions for private and public operators across the US. Above all, the World Remanufacturing Conference was about momentum and the need for reman to take the next step in legitimacy. Remanufacturing experts from around the world gave updates on the industry in their regions, and RIC elicited feedback on the creation of a standalone remanufacturing ISO standard that would define terminology and processes. But the big takeaway was Morlet’s call to action for the industry leadership to take their story to the next level, making remanufacturing a wellknown, ubiquitous term that is essential to the circular economy.
REMADE makes 2.0 call The REMADE Institute announced its second project call for proposals that includes $10 million in funding available from the US Department of Energy and co-funding members. While the first call for proposals focused on the recovery, reuse, remanufacturing and recycling of materials, this second round will be broader and is open to projects that tackle issues related to condition assessment, cleaning, repair, design, value chain and workforce development. Projects will be judged by panels representing REMADE’s five technology nodes: System Analysis and Integration, Design for Reuse and Disassembly, MFG Materials Optimisation, Reman/EOL Reuse, and Recycling and Recovery. Project Call 2.0 is open to all REMADE members, plus organisations which are interested in becoming members of the REMADE Institute. “The goal is to enable early stage R&D of key industrial platform technology that dramatically reduces the energy and emissions of industrialscale manufacturing,” announced REMADE CEO Nabil Nasr to conference attendees. • The due date for project proposals is February 11, 2019. For more information, go to www.remadeinstitute.org/project-call-documentation
“The future of the world depends on sustainability, and remanufacturing is a central component of sustainability” LEFT: Andrew Morlet of the Ellen MacArthur Foundation has a clear message for reman Email your comments and stories to editorial@rematecnews.com
Nabil Nasr
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RIC-RIT WORLD REMANUFACTURING CONFERENCE: REPORT
From left: John Disharoon, Bill Davies, Nabil Nasr and David Munson
“You have the opportunity to be part of a better economy - use that, and people will start to understand and appreciate what you’re doing”
Time for a standard RIC held an unofficial and unscientific vote among members at the conference about whether the organisation should push to establish a comprehensive ISO standard. Board chair Disharoon asked for feedback as he laid out the reason RIC favours creating a standard. “RIC is willing to be at the paddle wheel if members want to go down that path,” Disharoon said to nodding heads. “Okay, feedback from the group is to move forward.” Remanufacturing leaders - specifically those at RIC - see the push to establish a comprehensive ISO standard as key to increasing awareness of the industry among policy makers around the world. It’ll be important to create a more robust standard than the existing ANSI standard and differentiate remanufacturing from refurbishment, reconstruction and repair processes rather than new product manufacturing, he said. One of the biggest challenges, according to
Disharoon, will be to convince the ANSI board to support the ISO effort. “We don’t want to just translate ANSI into dozens of languages,” he said. “We need the guts and teeth of a separate ISO standard.” This will require creating a balance between a robust standard and it being general enough to cover all the industries under the remanufacturing umbrella. Some audience members, specifically smaller remanufacturing vendors, expressed concern about the cost of the certification process - suggesting that perhaps ISO certification could be made free or whether members could forgo ISO if they sold exclusively to the domestic market. Disharoon ended the discussion by inviting interested parties to join the trade and policy committee. The first step - already underway - is to establish a timeline for the process which typically takes three to five years.
Call to action Remanufacturing is a key component of the circular economy, declared Andrew Morlet during his keynote presentation, and the time is now for the industry to start talking about its role in how the economy will evolve in the near and distant future. To do this, he said, remanufacturers are going to have to up-level their message and make it more approachable for the general public. He suggested that the Ellen MacArthur Foundation, an organisation that aims to accelerate the transition to the circular economy, would be a great partner to that end, highlighting the success the foundation has had elevating the public’s understanding and support of the circular economy over the past several years. The organisation publishes a quarterly report that gets millions of hits and has established formal partnerships
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with 22 cities and 200 companies around the world which have committed to instituting policies supportive of the circular economy. Through these efforts, more than 100 million people are engaged per year. “No one knows what reman is,” Morlet said, providing a sober reminder of how far the industry has yet to go. “You all have a communications issue. It’s time to change that.” His advice for conference attendees was to promote an inspiring economic vision, embark on a bold growth ambition, provide an engaging narrative with case studies and use cases and piggyback on the momentum of the circular economy. “You have the opportunity to be part of a better economy,” he said. “Use that, and people will start to understand and appreciate what you’re doing.” Email your comments and stories to editorial@rematecnews.com
RIC-RIT WORLD REMANUFACTURING CONFERENCE: REPORT
The world of reman: a snapshot The state of remanufacturing outside the US has never been stronger, according to several experts who gave firsthand accounts of the industry in their respective regions. China: According to Joseph Chow, chairman, Automotive Parts Remanufacturing Association in AsiaPacific, China has the greatest potential for remanufacturing growth. He said that key drivers of reman in the country include a growing awareness of benefits, automobile manufacturing growth and increased service events. The government, he promised, is a strong supporter of remanufacturing.
Tana Utley
European Union: Remanufacturing was a $30 billion industry in the EU in 2015 and is primed to triple by 2030, according to Erik Sundin, associate professor, Linköping University. He said that aerospace and automotive are the biggest remanufacturing industries in the region, and there is a strong standards push - specifically how remanufacturing relates to the circular economy.
Singapore: Helene Pepin of the Advanced Remanufacturing and Technology Center said that an extremely connected country (highspeed broadband and highly literate population) and strong aerospace and marine oil and gas industries make Singapore an up and coming remanufacturing hub. Strong government support and a talented workforce will be key to making the island city state a key hub in a south-east Asia service model, she said. South Korea: Remanufacturing has grown 35% in eight years thanks to strong automotive and printer toner sectors. In addition, the government is supportive through several initiatives, including requiring remanufacturing products in government institutions and funding promotion and awareness programmes.
ABOUT THE AUTHOR Andrew Bardin Williams is a writer on technical and business issues
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din (left
Erik Sun
Trade wars are bad for business Uncertainty surrounding US trade policy was a topic of discussion throughout the conference. Caterpillar and John Deere have been vocal critics of the president’s tariffs on the import of certain raw materials and finished goods from China and the European Union, and representatives from other OEMs such as GE Healthcare also expressed concern. “The goal of RIC is to pursue a policy of free trade,” said John Disharoon, director of market access of Caterpillar and RIC board chair. During a discussion surrounding trade, market access and policy, he pointed out that remanufacturing requires the free flow of core and finished goods across international borders. He pledged that RIC will continue to use its influence to educate policy makers in the US and abroad on the detrimental impact an uncertain trade policy has on members. In the same session, Michael Schmit, director of remanufacturing activity for GE Healthcare, suggested that a robust international standard would help policy makers understand remanufacturing better and push policies that would help the industry maintain supply chains across borders (see Time for a standard). He pointed to officials in Vietnam who wholeheartedly accepted the existing ANSI standard to shape remanufacturing policies in that country. “We’re a global company. We’re not just about protecting the US,” Schmit said. “We have concerns about the whole world, and we wholeheartedly support free trade.” Disharoon agreed. “Certainty and predictability are helpful,” he said.
Mike Schmit
➤ Email your comments and stories to editorial@rematecnews.com
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ARTIFICIAL INTELLIGENCE
When AI meets reman
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convergence of machine learning algorithms, big data analytics, and connectivity between machines due to Internet of Things (IoT) capabilities are impacting and reshaping industry and business around the globe. In remanufacturing these advances are rapidly being applied in several ways.
Design4Reman Barriers for remanufacturing can always be traced back to the initial product design stage. If products were better designed to accomplish the goals of the remanufacturing process, massive improvements and efficiencies can be accomplished. The adoption of ubiquitous information and communication technologies (ICTs), thanks to elements of advanced AI, continue to blur the lines between virtual environments and the real world to create more sophisticated cyberphysical production systems (CPPS).
Advanced remanufacturing processes AI technologies are expanding computing power and connectivity which results in greater volumes of data that can be analysed in a more robust manner than ever before. This will allow remanufacturers to think big and push the envelope to develop more ambitious goals and objectives for their programmes. Lack of data or advanced robotics capabilities will no longer be impediments for remanufacturers to successfully process a higher percentage of product components and materials.
Robotics in reman Robots have already proven their capabilities in remanufacturing under certain conditions with relatively small and simple batches of components that usually involve some significant human oversight. Advances in AI are moving the needle in identifying and creating new patterns in the way humans and machines interact. This application of emerging technology shows significant promise to expand the capabilities of robotics in remanufacturing to tackle progressively more complex scenarios with less and less human interaction, with greater efficiency.
Inventory forecasting One of the most significant challenges all remanufacturers face is predicting how much demand there will be for returned products – and, of course, the quality of the materials being returned can make a significant difference as well. AI technologies can greatly improve upon existing forecasting models that attempt to predict product returns. Elements of Big Data and machine language learning can leverage and update realtime data on sales, product usage and warranty activity and more accurately predict product life expectancy and the rate and timing of returns into the remanufacturing process.
Closed-loop supply chain management There can be no true resilience for remanufacturing unless a complete closed-loop supply chain management strategy is employed. In-depth studies on reman are just now starting to
Email your comments and stories to editorial@rematecnews.com
Peshkova/Shutterstock.com
Artificial Intelligence (AI) is poised to make a similar impact in the fourth Industrial Revolution we are currently experiencing as Henry Ford’s assembly line did over 100 years ago. Joseph Zulick looks at its applications to reman
take place and raise awareness of the opportunities to be leveraged during the remanufacturing process to impact economic and environmental sustainability. The advances in AI and all emerging technologies will help put remanufacturing on an equal footing with all other phases of the product life cycle. Because this emphasis on remanufacturing is just starting to expand and receive attention, it also holds the most potential.
The future is now Every day we see advancements in the development of products and processes that seem to be right out of science fiction movies. From flying cars to putting a colony of people on Mars, humankind is entering a bold new era where we have the technology to execute just about anything we can imagine. This, coupled with increased global awareness of our finite resources and need to be good stewards of our planet, will continue to bring greater emphasis and attention to remanufacturing in all phases of the product cycle. AI and other emerging technologies are finally catching up and giving industry the tools to create this new reality. • Saving the world…one remanufactured component at a time, p9 • Viewpoint, p12
ABOUT THE AUTHOR Joseph Zulick is a writer and manager at MRO Electric and Supply
ReMaTecNews
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COMPANY PROFILE: CONTINENTAL
It’s not just about the tyres Continental is one of the world’s ‘quiet giants’ of automotive remanufacturing. Despite this, the company’s Amir Mohseni tells Adam Hill, reman is still a topic that needs to be explained every day
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Special team A special reman team was created, and Mohseni has been leading it since 2014, looking at the independent aftermarket (IAM), OEM and internal markets. “We emphasised what they wanted, we go step by step with customers locally,” he explains. The company has reman operations in North America (“the market is very well established”) and Europe (mainly Germany, although France and Romania are also mentioned) and has begun remanufacturing in the Shanghai area “for a big German OEM” in China. “We started remanufacturing hybrid electrical products,” he continues. “The China market is growing more than we expected.” Given the rapidly-increasing number of vehicles in the country, Continental expects the reman market will develop faster there than in the rest of the world. Elsewhere in Asia-Pacific, the company has sites in India, Indonesia, Japan, Korea, Malaysia and the Philippines and says it intends to “strengthen local remanufacturing in these countries within the next few years”. When it comes to sourcing cores, the company gets them from a variety of places. For example, automobile manufacturers collect used components from their authorised workshops and send them to Continental. For the IAM, wholesale distributors send the company some cores and others are bought from core specialists.
“You have to explain what reman is and then show them what you can do with reman: energy saving, cost saving, environmental topics” AMIR MOHSENI
Differing expectations Expectations of what reman can offer “differ from OEM to OEM and the IAM is different again,” explains Mohseni. “Some OEMs know the reman business very ➤
Pic credit: Rogier Bos
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ontinental’s orange livery and distinctive equine logo is famous worldwide. The Germany-based multinational has been in tyre manufacture for 136 years, branching out into other areas of the automotive industry – from electronics to driverless vehicles – in the last few decades. What is less well known is that the group has a long history in remanufacturing. Reman began as an internal service for Continental and has been going for more than 20 years. As with other original equipment manufacturers (OEMs), Continental does not necessarily trumpet its reman operation – for instance, there were no reman products on display at its plush stand at Automechanika in Frankfurt last September. But it is there. The group offers reman parts from the electronics and mechanics segments, with products ranging from diesel injectors and pumps to instrument clusters and navigation devices, with control units and air springs also on the cards. “We’ve seen that the reman market is growing,” says Amir Mohseni, head of business development, OES (original equipment services). “Worldwide, Ekkehard Kraemer, vice president, OES, Continental Automotive, decided to put more emphasis on reman and crossselling.” This makes sense, of course. As one of the leading suppliers to the automotive industry, Continental has close links with companies worldwide - and the company says it was this network that formed the foundation for the establishment of the remanufacturing business.
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COMPANY PROFILE: CONTINENTAL
Continental: timeline
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1871
Continental-Caoutchouc- und Gutta-Percha Compagnie founded in Hanover, manufacturing soft rubber products, rubberised fabrics - and solid tyres for carriages and bicycles
1882
Adopts ‘rampant horse‘ as trademark
1904
Presents world’s first automobile tyre with a patterned tread
1936
Synthetic rubber introduced into tyre manufacturing process
1960
Mass production of radial tyres begins
1988
45,900 employees worldwide and €4bn sales
1995
Automotive Systems division established
2006
Buys automotive electronics business of the US firm Motorola, expanding its activities in telematics
2008
Production of lithium-ion batteries for use in hybrid vehicles begins in Nuremberg
2012
Begins testing of automated driving in Nevada, US
2013
ContiLifeCycle concept launched, combining rubber recycling and truck tyre retreading to develop sustainable solution to extend service life of tyres
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COMPANY PROFILE: CONTINENTAL
➤ well and they know to expect the same quality at a different price. Some are also still in a developing phase – they use reman for delivery obligations, perhaps, or as an alternative.” Auto repair shops are also very interested, Continental points out, since it gives them additional high-quality, reasonably priced product lines to sell alongside new parts. While many OEMs want more reman from Continental, not everyone is convinced: “Not every OEM believes it’s a future trend.” This seems disappointing – not to mention, a little surprising. But Mohseni insists that Continental itself sees the value: “In Continental it’s an existing topic for sustainability, reducing waste, reusing materials and offering all customers an appropriate product.” Although Mohseni says that Continental tailors its reman products to different customers, there are no plans for a reman brand as such. “No,” he says. “Because there is no difference.” Having said that, things could change. “I don’t reject the idea of having a separate brand, perhaps if the customer asked for it,” Mohseni continues. “But the reman strategy of Continental is to go with the serial business. It’s a big transformation.” As well as classic products such as diesel injectors and pumps there are also “very complex” hybrid items to remanufacture. “Customers go to their garage and ask for a repair – whether IAM or OES they should have a reman product available,” he says. “With reman you can serve both clients.”
Continental identifies its reman operation as part of the group’s environmental strategy
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‘Some OEMs know the reman business very well and they know to expect the same quality at a different price,’ says Mohseni
Continental is a huge organisation, with 240,000 staff and 27 business units. As with many large manufacturers, serious internal discussions tend to focus on product launches. There is a good reason for this – quite apart from the thrill of the new, with major revenuegeneration potential, there are highly complex technical specifications from OEMs which need to be fulfilled.
New ways For internal customers, this has meant working with the serial business units of Continental. “We have said that things need to be a remanufacturable design – because OEMs are asking for it,” Mohseni says. “For example, try to screw everything – not to glue everything. It’s a completely new way of engineering. Normally we engineer on design to cost. We call this ‘servicitisation’; that’s the topic in Continental.” Because of the way that this vast
company works, it is hard to get a grip on exactly what proportion of Continental’s business reman takes up. But there is no doubt that it is important to the organisation. Mohseni’s business is mainly concerned with the chassis, powertrain and interior of vehicles – but, he points out, there are “so many people working on sustainability, it’s such a big company”. Reman is a part of that effort – giving it a place at the top table of Continental: the group’s remanufacturing operation was highlighted in the group’s sustainability report, for example – a very high profile, consumer-facing document. “The sustainability approach is led by top management through investor relations,” says Mohseni. “Sustainability is a very important reason for us to do reman. It has high visibility within the company.” So while not exactly shouting from the rooftops, Continental clearly sees its reman operation as important, identifying it as part of the group’s environmental strategy and supporting circular economy principles. Its corporate literature emphasises energy and material savings of remanufacturing (up to 90%), and reduction in CO2 emissions per component of 50-90%. But still, there is the issue of understanding and acceptance in a large part of the automotive market – and with the general public. “You have to explain what reman is,” says Mohseni. “And then show them what you can do with reman: energy saving, cost saving, environmental topics. We work to inform them about all the benefits, to make them more understanding.” He pauses and smiles: “There is still a lot to do after four years. Reman is a topic that has to be explained every day!”
Email your comments and stories to editorial@rematecnews.com
MERA SUSTAINABLE MANUFACTURING CONFERENCE 2018: REPORT
Working with one another Battery reman and why mechatronics is a great opportunity for reman were among the key topics at the conference – but collaboration to achieve industry growth was perhaps the key message, says Denise Rondini
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ith three tracks (innovation track, leadership track – and even race track), MERA’s Sustainable Manufacturing Conference 2018 in Michigan, US, had something for everybody. Kicking off the event, John Chalifoux, president and chief operating officer of MERA (which has rebranded itself as the Association for Sustainable Manufacturing), said he hoped that “collectively everyone involved in remanufacturing can help expand the awareness and acceptance of remanufacturing so it will have a greater impact in the next five years than it has had in the last 20”. With the theme, A new vision for the remanufacturing industry, the conference began at Lawrence Technological University in Southfield. Maria Vaz, provost and vice president for academic affairs, welcomed the
group of about 100 attendees saying that, “by definition, remanufacturing is a sustainable industry”. In remarks prior to the first presentation, Patrick ‘PT’ Muldoon, chief engineer, remanufacturing for Axle Tech, echoed Chalifoux’s sentiments adding: “The opportunities coming in remanufacturing are unprecedented. We have to get excited about what we are doing.”
Battery reman One of the big opportunities facing the industry is batteries. Dirk Spiers, president, Spiers New Technologies, focused on the challenges and opportunities in battery reman. Spiers explained that his firm is committed to extending the economic life of advanced battery packs and related electronics. Spiers said: “Electric vehicles will change the way we do business. Even though they are only 10% of the vehicle
population today, they are growing in use.” Globally, electric vehicles are projected to grow from one million today to 15 million by 2025. He says there is both an economic and moral imperative to figure out how to remanufacture batteries. “We are trying to set up a cradle-to-grave value stream for batteries,” he said. Spiers told conference attendees that this is an exciting time for the electric vehicle market and indicated that the sector was “just at the beginning stages” of battery reman. Another key theme of the conference was collaboration, and Daw Alwerfalli, professor of mechanical/manufacturing engineering and founding director of the master of engineering management programme at Lawrence Technological University, spoke about the need to design for reman and sustainability. Designing for sustainability is defined as incorporating environmental considerations into good design practice ReMaTecNews
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MERA SUSTAINABLE MANUFACTURING CONFERENCE 2018: REPORT
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“which reduces the negative impact on the environment and human health, with careful consideration given to water, energy, building materials and solid waste”. The goals of designing for sustainability are to: reduce consumption of non-renewable resources, minimise waste, and create healthy, productive environments.
Design principles Alwerfalli explained the five basic principles of sustainable product design are cyclic, solar, safe, efficient and social. Sustainable design takes a holistic view of the product throughout its first use and subsequent uses. One way product design engineers can aid reman is to design for disassembly (DFD or Design4Reman). This allows for the cost-effective separation and recovery of reusable components and materials. Alwerfalli explained that with DFD products are designed to be taken apart so that they can be used in later generations of products. The benefit of DFD is that components which are of good quality can be reused, metallic parts can be easily separated into categories, disassembled plastic parts can be easily removed, and parts made from materials such as glass or hazardous material can easily be separated and reprocessed. Today’s vehicles have evolved to contain parts that are both mechanical
and electronic. Mechatronics encompasses both mechanical and electronic parts and is an area that is getting more complicated everyday, Muldoon said in his presentation, Mechatronics: The Brave New Frontier. Mechatronic devices are found in a wide variety of applications from automotive to defence to medical to consumer devices like cameras, HVAC units, et cetera.
Mechatronic opportunity Remanufacturing mechatronic systems “requires detective investigations to determine the failure mode and repairs… You have to understand what you have to test as well”. Is it the mechanical part, the electronic part or both? “You need to understand the testing that is required to certify the part back to the OE level,” he added. Given the complexity of these systems, Muldoon said: “The component and the system must be tested together to ensure that the system works together. In today’s age, the tolerances allowed are microscopic and the system takes that into account with the computer software/ hardware driving the system. Testing today is highly technical and precise.” Muldoon sees mechatronics as a great opportunity for remanufacturing, and said: “There will be more product for us to reman than we can get to in a lifetime. In the future, companies are going to be rated on how environmental they
John Chalifoux
, MERA
“The opportunities coming in remanufacturing are unprecedented…we have to get excited about what we are doing”
Economic factors From policies and regulation, the talk at the MERA conference turned to the economy with David Teolis, international economist at General Motors; Tom Cooper, partner at CAVOK; and Paul McCarthy, senior vice president of strategy and planning at MEMA. All offered their perspectives. Teolis reminded conference attendees that global economic growth historically has been volatile and that we are seeing an increase in globalisation. He is concerned that a US-China trade war is a threat to long-term trade relations and that the strong US dollar is negatively impacting vulnerable emerging market economies. In addition, he cited third-party sources whose forecasts point to slowing growth in 2019. The three key takeaways from his presentation were that the global economy is dynamic and adaptive, cyclical factors are a main contributor to current growth momentum, and global risks are biased toward the downside. From an overall economic view, Cooper focused on the 2018 forecast in aviation for MRO (maintenance, repair and
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operations – in effect, this is the aviation sector’s term for ‘remanufacturing’). He began by saying that global performance remains strong in the air transport industry. Globally 939 aircraft have been added to the fleet, which translates into an MRO market that is forecast to be at $77.4 billion in 2018 with engine MRO continuing to be the driver of growth. He anticipates that OEMs will continue their push into MRO services and that MRO continues to be faced with higher material and labour costs. McCarthy concentrated on the automotive market, saying that there are currently 279 million light vehicles in operation in the US, and the average age of those vehicles is 11.7 years and increasing. In addition, the aftermarket sits at $287 billion, a number that has doubled over the last 20 years. Inflation is the biggest risk facing the industry and McCarthy said: “We don’t know how to manage business during an inflationary period. It will create winners and losers.” Email your comments and stories to editorial@rematecnews.com
MERA SUSTAINABLE MANUFACTURING CONFERENCE 2018: REPORT
Doing the right things John Thomas, founder of John A. Thomas & Associates, who retired as senior vice president & chief systems engineer at Booz Allen Hamilton, gave the leadership keynote address. Thomas said the difference between management and leadership is that management means doing things right, while leadership is doing the right things. He explained that people are seen as leaders for a variety of reasons: they are perceived to be an expert, they have a title or position that implies leadership, and make people want to be a part of where you are going. His perspective on leadership is “if no-one is following you, then you are not leading”. He also said that the way to tell if someone truly is a leader is to watch what people do when the leader is not around: “Do they follow and extend what the leader has been doing?” If so, the person is a leader.
J. Scot Sharland, Automotive Industry Action Group
are and how they service their products long term. We have a rare chance to do the right thing as this new technology emerges. Reman has the opportunity to give better value to customers.” In another session, Tom Lerner, vice president, public policy at MEMA, and Dave McGuire, director of membership and business development at MERA, shared their thoughts on how US policy and regulations are impacting sustainable manufacturing. Tariffs were a main focus of their comments with Lerner saying
Finding the next generation Focusing on the collaboration needed for reman to get to the next level, a panel of university professors talked about what they are doing to attract new talent to the industry. The panel consisted of: • Daw Alwerfalli, professor of mechanical/manufacturing engineering, and founding director of the master of engineering management programme at Lawrence Technological University • Andre Benard, associate professor, mechanical engineering, Michigan State University • Mohamad Qatu, dean of the college of technology at Eastern Michigan University • Jeremy Rickli, assistant professor, industrial and systems engineering Wayne State College of Engineering • John Sutherland, professor and Fehsenfeld Family Head, environmental and ecological engineering, Purdue University Everything from internship programmes to bringing middle school students to college campuses to making faculty at high schools aware of the opportunities in reman to revising curriculum to align with the needs of business were touted as ways to make more young people aware of the many and varied opportunities available to them - and to share with them the sustainable nature of remanufacturing.
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that in September president Donald Trump indicated he was prepared to ask that tariffs be placed on the remaining $267 billion of imports from China. Lerner also said that Trump is thinking of tariffs on automobiles and auto part imports. The finance committee, according to Lerner, has told him this is a bad idea - but as president he still can enact them.
Disruptive technology A New Vision for the Remanufacturing Industry, a presentation by Ben Stanley, automotive research lead, Institute for Business Value at IBM, focused on many of the disruptive technologies that are reshaping the industry. He cited survey results, which showed that 73% of all executives rated collaboration with other industries as the best opportunity for industry growth as we progress toward 2025. Software is driving technology and many non-traditional companies are dipping their toes in the transportation industry with autonomous and electric vehicle technologies. An engine or engine component is sold every 15 seconds on eBay Motors, according to Jordan Hettinga, eBay Motors director of parts and accessories category management. In addition, an engine control unit (ECU) is sold every two minutes and automotive parts e-commerce is continuing to grow and is forecast to reach $14.9 billion by 2020. ReMaTecNews
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MERA SUSTAINABLE MANUFACTURING CONFERENCE 2018: REPORT
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He challenged conference attendees to ask themselves how they could use e-commerce to grow their businesses and to change the narrative about remanufactured parts. Ebay is seeing an increased interest in remanufactured and used parts. In addition, he said that eBay is working with MERA on a logo usage agreement that would enable eBay to promote products that are affiliated with MERA’s Manufactured Again Certification.
Knopf wins MERA’s Michael Cardone leadership award
Core definition Remanufacturing developments in emerging markets were explored by Mitch Zajac, patent attorney, and Quan Yang, law clerk at Butzel Long. They began their presentation by reviewing the rules and policies in place in several areas of the world that impact remanufacturing. One of the biggest issues in the global reman space is cores and how governments in various countries define them. Zajac reminded attendees that the US Department of Commerce’s Automotive Industry Resource Guide was a good reference tool for US exporters. Much of the presentation focused on developments in the Chinese market, importing used parts into China and the process of incorporating a business in China. Yang said that there are still restrictions on importing cores, but it is not as difficult as in the past. McGuire, who moderated this session said: “China is not a complete threat. There are opportunities there and the market is opening up.” He added that China has been setting up remanufacturing centres in the country.
David Overbeeke, president and CEO of Brake Parts, which has operations in China, encouraged attendees who are interested in doing business in China to use an expert and to have a Chinese national involved as a partner in the business. In closing out the conference, Overbeeke thanked MERA for its thought leadership in changing the narrative about remanufacturing and challenged attendees to go through the process of getting Manufactured Again Certification.
ABOUT THE AUTHOR Denise Rondini is US correspondent for ReMaTecNews
The need for speed Hot laps in cool cars: before settling down to the rigours of debate at the MERA Sustainable Manufacturing Conference 2018, delegates had the chance to experience thrills of a different kind. During the evening networking session they were invited to hurtle round the 1.5 mile Champion Motor Speedway on the M1 Concourse site in Pontiac, Michigan.
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Woody Knopf, chairman of Knopf Automotive, was awarded the Michael Cardone Leadership Award, which recognises an individual who demonstrates exceptional leadership in remanufacturing and sustainability. The award is named in honour of Michael Cardone Jr., co-founder and chief strategy officer of Cardone Industries. “The Michael Cardone Leadership Award exemplifies key traits of Michael Cardone Jr.: vision, passion, teamwork and excellence,” said John Chalifoux, president and COO of MERA. Knopf joined Knopf Automotive, which was started in 1945, in the 1970s and was involved in the company throughout its sale to LQK only recently retiring “for the third time,” joked David Overbeeke, president and CEO of Brake Parts, Inc., in presenting the award. Overbeeke described Knopf as “having a passion for giving back” and has been involved in various community and educational activities. Chalifoux said that Knopf helped grow the business by nurturing relationships with other companies including Cardone, Delco Remy, Motorcar Parts of American, Saginaw Steering and LQK. “The legacy of Knopf Automotive remains the stand for valve, excellence and integrity in the automotive industry,” Chalifoux said. “With this award, we recognize and thank Woody Knopf for his dedication to our industry, and for his love and support of the people in the communities in which he lives and works.”
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REVIEW
The year when love was in the air Dim Dimich/Shutterstock.com
From artwork to the new-look Remanufacturer of the Year Awards, there was a lot to admire in 2018. And despite financial difficulties there is loads to look forward to in 2019. Especially if you like robots…
L
ove was in the air in 2018. Jack Stack kicked off the year in style in ReMaTecNews. In an in-depth interview, the veteran businessman revealed that he sees himself as a gambler – not a risk taker – but crucially, after decades in charge of SRC Holdings, he is still in love with reman. He set the tone: there was love of a different kind when the art world met reman in Morocco. Local craftsmen built a replica of a Caterpillar C18 engine out of wood and copper for conceptual artist Eric van Hove, a project which intrigued remanufacturer Hamofa Industrial Engines: “I love engines – and he has the same thing about his art,”
said Hamofa’s Rob Verhoeven. Love for an alternator became an unlikely viral hit for Polish automotive group AS-PL. Meanwhile, brotherly love was a theme of the interview with German remanufacturer Hetzel, which celebrated its 25th birthday this year. “It’s a big surprise for many people how we can get along together for such a long time,” smiled Ulrich of his brother Edgar. There was certainly nothing but bonhomie at Frankfurt, where the three winners of the new-look Remanufacturer of the Year Award were announced. Amid the happiness, there are always lows, of course. Apple consumer products remanufacturer LEAPP ran into
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difficulty but is, happily, now back in the game. Also, Bayreuth University’s Rolf Steinhilper retired after 40 years of tirelessly promoting reman in Europe and worldwide – although it must be said he did not look too unhappy about it, and does not show many signs of slowing down yet. Anyway, to 2019: it’s a ReMaTec year, so see you in Amsterdam in June... and then perhaps in Guangzhou in September for a new ReMaTec show – ReMaTec Asia. And you don’t have to be a gambler to bet on the fact that we are all going to hear more – much, much more – about robots in reman over the next 12 months. You’ve been warned. ReMaTecNews
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Koehler: APRA Europe will provide ‘better services and more value for membership’
Into the final straight APRA Europe has cleared a key hurdle towards becoming a separate legal entity, which will benefit the entire reman industry – and the organisation also has important news about membership “Our valuable members have shown much patience and given us much support up to this point and I am relieved that we have now entered the final straight,” states APRA Europe vice chairman Peter Bartel.
About a year ago, APRA - together with the board of APRA Europe - decided to manifest APRA Europe as a separate European legal entity. Updates have been communicated constantly – and now, APRA Europe has cleared the key hurdle on the way to becoming a legal entity and has entered the final straight.
But why all these efforts?
“I am happy to announce that we now hold the notarial deed of incorporation in our hands,” says Dr. Daniel C. F. Koehler, chairman of APRA Europe. Throughout the last year, APRA and its European division have been elaborating contracts and bylaws, going through a number of correction loops, holding discussions with expert lawyers and arriving at a satisfactory basis for the incorporation. The legal entity is being established in Brussels, Belgium, as an AISBL (association internationale sans but lucratif) or INPA (international non-profit association) in English. The above referenced notarial deed is the first and most important one of three formal acts which are required. Now following is the confirmation of the incorporation by Royal Decree. After issuing the Decree, the new APRA Europe AISBL goes live on the date of publication in the Belgian Official Journal. The whole process still takes about up to three months from now.
• The legal entity will give the organisation - and with it the whole remanufacturing industry - more weight in the European Union. • It facilitates targeted lobbying within law-giving institutions and among other politicians. • Members - as well as the whole remanufacturing industry - will benefit from a more precise, more reliable and more predictable business environment. • European members may find more identity with the association while also having a direct contact person within Europe. • Decision processes within the cornerstones of the legal entity will be accelerated, leading to a more efficient organisation as well as independent European association operations. • Formal legal presence also allows for receiving EU funds for APRA Europe’s ongoing contributions to remanufacturing-related R&D projects which can directly contribute to the sustainable success of member companies.
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“Our valuable members have shown much patience and given us much support up to this point and I am relieved that we have now entered the final straight” Membership renewal “I have one more important, but very operational, thing to add,” says Koehler. “Intermediately we had to postpone the membership renewal for 2018 and 2019. That’s why I want to repeat it, here. The transformation process means we have not been able to invoice our members for 2018 and therefore they have not received feedback about the renewal of their membership. But of course, all companies that were a member on December 31 2017, still are an APRA Europe member. As soon as we have received the Royal Decree, we will be able to open our bank account and start sending out invoices for renewal. Due to the delay, members will face a double invoice for 2018 and 2019 membership, coming in the first quarter of 2019.” Koehler concludes: “Thank you again to all members for backing our journey. We will respond with still better services and more value for membership.”
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ReMaTecNews
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DIARY
December 2018 06.Dec - 09.Dec
BOLOGNA MOTOR SHOW Bologna, Italy
January 2019
April 2019
September 2019
04.Apr – 07.Apr AUTOMECHANIKA ISTANBUL Istanbul, Turkey
June 2019 04.Jun – 06.Jun
28.Jan - 31.Jan
HEAVY DUTY AFTERMARKET WEEK
AUTOMECHANIKA BIRMINGHAM
26.Feb - 28.Feb
AUTOMECHANIKA JEDDAH
20.Mar - 21.Mar
SYMPOSIUM ON AUTOMATED & ROBOTISED REMANUFACTURING Trier, Germany The event will bring together engineers and managers involved in optimising, planning and developing reman processes, with input from equipment suppliers and academics. ReMaTecNews is delighted to be the symposium’s media partner.
Guangzhou, China First edition of ReMaTec Asia, co-located with AAG Auto Aftermarket, bridging east and west in remanufacturing. 24.Sep – 26.Sep
18.Jun – 20.Jun
CIRCULARITY19 Minneapolis, USA New circular economy event, supported by the Ellen MacArthur Foundation.
Jeddah, Saudi Arabia
March 2019
REMATEC ASIA
AAG AUTO AFTERMARKET
Birmingham, UK
Las Vegas, USA
February 2019
24.Sep - 26.Sep
Guangzhou, China Includes the Remanufacturing Forum, organised by China Parts Remanufacturing Association (CPRA).
October 2019
23.Jun - 25.Jun
REMATEC 2019
Meet the team! Contact us to make an appointment. rematec@rai.nl
June 2019 23.Jun - 25.Jun
REMATEC 2019 Amsterdam, Netherlands The largest remanufacturing event in the world, bringing the whole supply chain of reman together. New features in this edition include wind turbine reman.
September 2019
15.Oct - 19.Oct
Amsterdam, Netherlands The largest remanufacturing event in the world, bringing the whole supply chain of reman together. New features in this edition include wind turbine reman.
EQUIP AUTO Paris, France
November 2019 10.Nov - 16.Nov
AGRITECHNICA Hanover, Germany
24.Sep - 26.Sep
REMATEC ASIA Guangzhou, China First edition of ReMaTec Asia, co-located with AAG Auto Aftermarket, bridging east and west in remanufacturing.
23.Jun - 25.Jun
ICOR 2019
Amsterdam, Netherlands Co-located with, and supported by, ReMaTec, the University of Strathclyde and Linköping University host the fourth International Conference on Remanufacturing.
Yorien de Ruijter sales manager ReMaTec & ReMaTec Asia
To advertise in Contact Sara Clark sara.clark @talkmediasales.co.uk Tel. +44 (0)1732 445302
Sara Clark advertising manager ReMaTecNews
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The value of education Recruiting skilled reman workers is a big problem. Volker Schittenhelm looks at a German scheme which could provide a model for the industry if it is transferred to other national FIRM members This is an exciting time for the industry: remanufacturing-related issues such as design4reman, the circular economy, electronic reman, CO2 footprint reduction, environmental life cycle assessments have all found their way into the academic arena, creating interest at universities and research institutes. This is more than positive because it leads students, engineers and young people to think about environmental protection. And it also leads to remanufacturing being recognised as the ultimate form of environmental protection - versus recycling, waste management and waste avoidance.
Skilled recruitment However, we have a problem. There is no educational institute, school or training centre in Europe from which engine reman garages can recruit skilled engine reman staff. Students at school or in technical training – even if they are interested - have no chance to get educated and trained for engine remanufacturing. The only solution to solve that problem – at least for Germany - was to take the reins and establish our own educational project. So the VMI, the German association of engine remanufacturers, established a two-year engine reman education and training programme (ETP), backed by their sustaining members from the engine component and reman industry.
quality, documentation, cleaning issues and component reman practical training. To make it round legal issues like branding, warranty, guarantee, general terms and conditions, cross-border business as well as strategical and business development–related issues are an integral part of the ETP. Thus, the VMI offers a wide range of content, where newcomers from school, career changers, administration staff, but also basic skilled employees taking over additional responsibilities in the garage or company, can be well educated. At the end of September this year, during Automechanika, the VMI started the first pilot module. Hosted by Briggs & Stratton in Germany, a three-day knowledge transfer by experienced speakers from the engine and engine reman industry, practical demonstrations and engine failure diagnosis based on intentionally crashed engines led to a very successful launch (pictured).
Pilot module It includes basic engine knowledge, everything on engine components including materials, component and engine failure diagnosis, measuring techniques,
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Save the dates • Module 2 will take place at the end of January, hosted by MS Motor Service International, worldwide active engine parts service organisation of Kolbenschmidt-Pierburg in cooperation with one of the leading gasket technology manufacturers, ElringKlinger. • Module 3 is scheduled for mid-April and hosted by Motair Turbolader, one of the main German remanufacturers of turbochargers. • Modules 4-9 will follow regularly in three-month steps, so that the final examination module is scheduled for the second quarter of 2020. Round 2 – the subsequent ETP cycle – is planned to start in October next year. So, if you are a German engine remanufacturer, and you need engine reman education and training, join VMI and profit from its activities. For general information about modules, content, time frame and certification of engine reman training and education get in contact with VMI (www.vmi-ev.de) or email FIRM at communication@firm-org.eu.
Conclusion This is a German solution, but it could be transferred to other national FIRM members. And if FIRM – in this transfer process - can match all the national education programmes to a unique European one, I am sure that our engine reman industry will no longer have any problems in recruiting skilled people.
ReMaTecNews
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