remanufacturing industry briefing documents/standards... · 2016-12-07 · reman not only...

Hosted by the U.S. Department of Commerceand the Standards Alliance

MEMA Office | Washington, D.C.December 7, 2016

Remanufacturing Industry Briefing

John ChalifouxMERA

George ZauflikCARDONE Industries, Inc.

John DisharoonCaterpillar, Inc.




John ChalifouxPresident and Chief Operating Officer

MERA

Today’s Theme:

Setting the Quality of RemanufacturedProducts on Par with New

A Division of MEMA

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• Key Industry Drivers

• Reman as the 4th R

• Remanufacturing Industry Report

• International Industry Definition

• Remanufacturing Legislation

• Manufactured Again Certification

Discussion Topics

A Division of MEMA

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Key Industry Drivers

• Economic and environmental consciousness of buyers

• OEMs and suppliers view reman as a valuable service

parts offering… particularly as service commitments

increase to 15 years beyond EOP (end of production)

A Division of MEMA

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Reduce.

Reuse.

Recycle.

Reduce.

Reuse.

Reman.Recycle.

A Division of MEMA

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Reduce.

Reuse.

Recycle.

Reduce.

Reuse.

Reman.Recycle.

A Division of MEMA

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Reduce. Reuse. Reman. Recycle.— the 4th R of the environment —

Remanufacturing is sustainable manufacturing and a

key component of the circular economy.

Today’s remanufactured products are as good as new,

cost less to purchase, and minimize the impact

on the environment.

A Division of MEMA

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U.S. International Trade Commission Report (2012):Remanufactured Goods: An Overview of the U.S. and Global Industries, Markets and Trade

Key Findings

• The U.S. is the world’s largest producer, consumer, and

exporter of remanufactured goods.

• U.S. production of remanufactured goods (in all sectors)

totaled at least USD 43.0 billion in 2011.

• U.S. remanufacturing activities supported at least 180,000

full-time jobs in the U.S.

Remanufacturing Report

A Division of MEMA

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Key Findings(continued)

• The U.S. and the European Union account for the bulk of

global remanufacturing activity and trade; although Brazil,

India, and China are developing their own remanufacturing

industries in response to growing domestic demand.


A Division of MEMA

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Key Findings(continued)

• Foreign regulatory barriers are a significant impediment to

U.S. and global trade in remanufactured goods. The lack of

a common definition of remanufactured goods hampers

increased U.S. and global trade in remanufactured goods.


A Division of MEMA

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REMANUFACTURING: A standardized industrial process by

which cores are returned to same-as-new, or better, condition

and performance. The process is in line with specific technical

specifications, including engineering, quality and testing

standards. The process yields fully warranted products.

September 13, 2016: MERA, APRA, CLEPA, FIRM, ANRAP, CPRA

International Industry Definition

A Division of MEMA

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CORE: A previously sold, worn or non-functional product or

part, intended for the remanufacturing process. During reverse

logistics, a core is protected, handled and identified for

remanufacturing to avoid damage and to preserve its value. A

core is not waste or scrap and is not intended to be reused

before remanufacturing.

September 13, 2016: MERA, APRA, CLEPA, FIRM, ANRAP, CPRA

International Industry Definition

Definitions for remanufacturing also exist with ITC and USTR

A Division of MEMA

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Remanufacturing Legislation

U.S. Federal Vehicle Repair Cost Savings Act

• Signed into law by President Obama in October 2015

• Requires Federal Agencies to encourage the use of

remanufactured parts when servicing the federal civilian

vehicle fleet

o The related annual purchases of those agencies total

nearly USD $1 billion.

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Objective Set the quality of remanufactured products on par with new

Expected Outcome Increased value for remanufacturers and all buyers

15

New

RemanRebuilt

New Reman

Rebuilt

Perception: Future State:

QUALITY

QUALITY

Remanufacturing Certification

A Division of MEMA

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Program Highlights

• Companies will be able to certify that their remanufacturing

processes meet quality management standards more

generally associated with new manufacturing:

o ISO 9001 and IATF 16949

• Program allows all buyers to confidently identify—and

purchase—remanufactured products.

Learn more at ManufacturedAgain.com

Manufactured Again Certification

A Division of MEMA

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The program will drive demand by identifying companies and

brands to:

• Vehicle manufacturers

• Government procurement offices

• Repair shops

• Technicians

• End users (consumers)


Manufactured Again Certification

A Division of MEMA

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Manufactured Again Certification Mark

Today’s Theme:

Setting the Quality of RemanufacturedProducts on Par with New




George ZauflikSenior Vice President

CARDONE Industries, Inc.

CARDONE Today

Largest family-ownedremanufacturer

46 years experience

Over 3.4 million sq. ft. in Philadelphia, PA

46,000+ SKUs• All makes and models

Over 5000 employees

World HQ, Philadelphia, PA

Presenter

Presentation Notes

Today - CDC From its humble beginnings in 1970, CARDONE Industries has grown to be the largest privately-owned remanufacturer in the world. From a single wiper motor line, we now offer over 90 new and remanufactured product lines under seven major divisions. From six employees, we’ve expanded to more than 5,000 people operating in facilities across North America. Our largest facility, the CARDONE Distribution Center and World Headquarters, was purchased to provide faster and more efficient delivery systems for our customers. Situated on 45 acres, it has over one million sq. ft. and 170 shipping and receiving docks. Combined with our other remanufacturing facilities in North Philadelphia, CARDONE’s footprint covers 3.4 million square feet.

CARDONE Footprint

World Headquarters• Philadelphia, PA

Mexico Operations• Matamoros, Mexico

Distribution Warehouses• Dallas, TX• Harlingen, TX• Ontario, CA• Mississauga, ON• Edmonton, AB

Presenter

Presentation Notes

Over the past 40 years, CARDONE has grown to be a global company. With operations in Pennsylvania and Mexico and warehouse facilities in Texas, California, Ontario and Alberta, CARDONE is well-positioned to support a growing customer base.

Mexico Operations

Matamoros, Mexico Three plants 2,800 employees 500,000+ square feetTridonex Plt 52

Tridonex Plt 53

Tridonex Plt 50

Texas Operations

Harlingen, TX Core facility to support

Mexicoremanufacturing

Distribution for southwest

670,000 square feet

Presenter

Presentation Notes

Our newest warehouse was purchased in 2006 to support the growth of our Mexican operations.

Dallas, Texas State-of-the-art

distribution facilities

LEED-certified building Environmental cert.

407,000 sq. ft. 100 docks 24-hr. turnaround

Texas Operations

Why Reman?

Remanufactured parts typically sell 30-50% BELOW the price of new units.

Reman$240.95

New$415.00

Presenter

Presentation Notes

Why Reman? There are many reasons why reman has a strong value proposition: First of all, we are often able to offer reman parts at 30-50% below the price of new. This gives you a high-quality, low-cost alternative to offer your customers.

Why Reman?

Saves 85% energy and material used to manufacture new parts

Eliminates emissions

Reduced waste disposal

Saves manufacturing costs by salvaging unworn parts

Presenter

Presentation Notes

Why Reman? Secondly, reman helps preserve the environment. By reusing cores, we save 85% of the energy and material it would take to manufacture new parts. Reman is even “greener” than recycling because it eliminates the hazardous emissions and greenhouse gases caused by resmelting metal castings. Tons of waste are also saved from landfills, reducing the burden of trash disposal.

Why Reman?

Extend Sales Throughout Entire Life Cycle

Data Based Upon 10 Years USA Experience

NewRemanTotal

NEWREMAN

Volu

me

of P

arts

Years

Presenter

Presentation Notes

Why Reman? As you can see in this chart, reman significantly increases profitability and sales potential throughout the entire life of a vehicle. Consumers drive their cars for many more years than they used to. After cars surpass the age when warranties expire, it’s harder to find brand new parts, even if you want them. In this economy, consumers are even more interested in lower-cost alternatives.

Why Reman?

Widest Coverage

Early-model coverage where O.E. new parts supply

no longer exists

Late-model coverage where high-priced O.E. is the

only other option

Presenter

Presentation Notes

Reman not only facilitates late-model availability, it also enables older vehicles to keeping running. Once the vehicle population of older models declines, it becomes impractical for OEMs or aftermarket new suppliers to produce short production runs. Reman, however, is not limited by production size – we can produce a few or many with flexible lead times.

Leading in Quality

ISO 9001 certified• Quality processes• Documented continuous

improvement plans

TS 16949 certified• International automotive

quality standard

ISO 14001 certified• International environmental

management system

Presenter

Presentation Notes

Our passion for excellent quality is exemplified in our ISO 9001 and TS16949 certifications. These 3rd party endorsements of our processes and improvement methodologies offer peace of mind that we stand behind our products. In fact, OEMs value TS certification to the point that they require it of all their suppliers.

Our Newest Products

Released in Past Year

Hybrid Drive Batteries

Glow Plug Controllers

ABS Modules

Air Suspension Springs

Air Suspension Struts

Air Suspension Compressors

Totally Integrated Power ModulesAccelerator Pedal Sensor Auxiliary Coolant Pump

Premium Calipers

Presenter

Presentation Notes

CARDONE is aggressively focused on growth through introducing new products as an alternative to the OE Dealer. These product lines were all introduced it he past year.

Leading in Technology

Mechatronic / Electronic Parts Electronic Power Steering Electronic Brake Units “Anti-Pinch” Window Lift Motors ABS Systems Electric Calipers IVD Brake Boosters Many More!

Presenter

Presentation Notes

CARDONE invests heavily in cutting edge technologies to meet tomorrow’s vehicle demands. Our reman line of “C-Tec” parts are late, even current-model, parts that feature new technology not typically seen in older models. Many parts that were traditionally mechanical, now combine mechanical, hydraulic and electronic elements. CARDONE is the only remanufacturer with established core competencies in these disciplines, which enables us to handle just about any new technology the market throws at us. Typically, the OE dealer was the only option for these parts, but we are able to offer reman units at a much lower price. A few examples of our C-Tec products include: ABS modules, Electronic Power Steering, Electric Smog Pumps, Electronic Throttle Body Assemblies, CAN (Controller Area Network) Motors, Electric Calipers and IVD Brake Boosters.

To deliver the right products

at the right time and place

with the excellent

quality, technology and service

you deserve.

CARDONE Commitment

Gaining Global Acceptance

Presenter

Presentation Notes

Argentina – No Reman; Brazil – Complicated approval process; Colombia – limited access (no on road);Venezuela – Cores go through prohibitive and destructive government testing that renders them useless; Algeria cannot return Core; Libya cannot (return) export Core; Ethiopia does not allow core return; Turkey – No Reman, Iran – US Embargo; Turkmenistan /Uzbekistan - limits on core exports; China – No free RFG (or core) circulation; Russia – Sanctions and complicated transaction issues (pilot project underway); Bangladesh through 3rd party; North Korea – US Embargo; Indonesia – No Reman;

Annex D - Pathfinder on Facilitating Trade inRemanufactured Goods

“Remanufacturing is a complete product recovery process that includes the repair, replacement and recovery of components for product reuse…participating economies committed not to apply measures specifically concerning used goods to remanufactured goods.”

JapanUnited StatesChileCanadaNew ZealandChinese Taipei

Papua New GuineaAustraliaMexicoSingaporeKorea

Presenter

Presentation Notes

Argentina – No Reman; Brazil – Complicated approval process; Venezuela – Cores go through prohibitive and destructive government testing that renders them useless; Algeria cannot return Core; Libya cannot (return) export Core; Ethiopia does not allow core return; Turkey – No Reman, Iran – US Embargo; Turkmenistan /Uzbekistan - limits on core exports; China – No free RFG (or core) circulation; Russia – Sanctions and complicated transaction issues (pilot project underway); Bangladesh – complicated core export only through 3rd party (pilot underway); North Korea – US Embargo; Indonesia – No Reman;

TransPacific Trade Agreement (TPP) Article 2.11: Import and Export Restrictions 1. Except as otherwise provided in this Agreement, no Party shall adopt or maintain any prohibition or restriction on the importation of any good of another Party or on the exportation or sale for export of any good destined for the territory of another Party, except in accordance with Article XI of the GATT 1994 and its interpretative notes, and to this end Article XI of the GATT 1994 and its interpretive notes are incorporated into and made a part of this Agreement, mutatis mutandis

Article 2.12: Remanufactured Goods 1. For greater certainty, paragraph 1 of Article 2.11 (Import and Export Restrictions) applies to prohibitions and restrictions on the importation of remanufactured goods. 2. If a Party adopts or maintains measures prohibiting or restricting the importation of used goods, it shall not apply those measures to remanufactured goods.

Presenter

Presentation Notes


United StatesAustraliaBruneiCanadaChileJapanNew Zealand

MalaysiaMexicoNew ZealandPeruSingaporeVietnam

**Indonesia

TransPacific Trade Agreement (TPP)

Presenter

Presentation Notes


Thank Youfor your time

John ChalifouxMERA

George ZauflikCARDONE Industries, Inc.


remanufacturing industry briefing documents/standards... · 2016-12-07 · reman not only...

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