Remanufacturing could boost UK economy by $9.2 billion

March 26, 2014
A parliamentary report found that there is “huge potential” for remanufacturing in the UK, but that the government will “need to address barriers”.
Business Green reported on the parliamentary report Remanufacturing towards a resource efficient economy, which argues that the “huge potential” for UK remanufacturing in all industries could add £5.6 billion ($9.2 billion/€6.7 billion) to the UK economy, though it argues that the UK government will “need to address barriers” in the way of implementing remanufacturing and reaping the benefits.
The report, based on an inquiry by former Environment Secretary Caroline Spelman, was said to have noted the UK is currently missing out on “billions of pounds and thousands of skilled jobs” due to the failure to make the most of remanufacturing, with its current value to the economy estimated to be around £2.4 billion ($3.9 billion/€2.8 billion).
The concept of a circular economy, whereby all components of manufactured products are reused and products are designed from conception to be reusable, is also discussed, and the site added that whilst many “high value, durable products […] lend themselves naturally to remanufacturing”, the challenge is “working out how to capture goods […] where the technology changes very quickly”, such as smartphones.
Adding that the concept of remanufacturing has “climbed the political and business agenda in recent years as commodities have become scarcer or more difficult to access”, the report claims that the value of wood, food, textiles, plastics and electronics landfilled each year is around £3.8 billion ($6.2 billion/€4.5 billion), and the government has previously told businesses that they could save around £23 billion ($38 billion/€27.5 billion) a year “through low cost or no cost improvements in resource efficiency”.
Citing machinery manufacturer Caterpillar as a good example of a company utilising remanufacturing, the report also discusses the potential remanufacturing has to “increase skills and create jobs”, citing the US’ position as the largest remanufacturing nation, where remanufacturing grew 15 percent between 2009 and 2011 to be worth around $43 billion (€31 billion), employing around 180,000 people in over 70,000 companies.
In the UK, 47,500 jobs could be created by remanufacturing, according to think tank Green Alliance, with around eight to 20 jobs created for “every thousand tonnes of produce reused or remanufactured”. Remanufacturing’s lower energy and raw material use were also mentioned, with the practise saving more than 800,000 tonnes of carbon dioxide emissions per year (around one percent of the emissions from cars), and enough raw materials to fill 155,000 train carriages forming a train 1,100 miles long.
Spelman stated that the UK is “currently missing out on most of the benefits associated with remanufacturing”, and urged the government to do more to exploit its “huge economic and environmental potential […] the renaissance of British manufacturing has created an outstanding opportunity for remanufacturing in the UK. But the full potential has not yet nearly been realised.
“The government must act now to ensure the UK does not lag further behind in the rapidly growing global remanufacturing industry”.
The report also added that the British government should “adopt a clear definition of remanufacturing” through a certified mark for remanufactured products, which would “increase consumer acceptance of the practice and avoid the problem of having to recertify goods for the CE mark”. It concluded in turn that “identifying areas of potential and creating a fund to develop remanufacturing in these areas could also help kickstart the sector”, and creating a centre of excellence for remanufacturing could reduce the costs of training people.

Source: The Recycler