Last summer, a Wall Street article reported some numbers on Caterpillar’s (CAT) remanufacturing activities. 1.5 billion in a total of $36 billion revenue. Moreover, CAT expects this market to grow about 15-20% annually. According to this article whole remanufacturing market values to $100 billion*.
More numbers from another article*: in 2005, Caterpillar received 135 million pounds of components. 70% or 2.2 million units processed into remanufactured products. Remaining 30%, certainly, did not go to waste, but recycled.
CAT is one of the most popular companies featured in press with its remanufacturing activities. Capital goods industry provides a natural growing field for remanufacturing and CAT is not hesitant to take initiatives to reap more from this opportunity: First, the announcement of remanufacturing division, then the acquisition of Progress Rail and recently, their cooperation agreement with China to help develop Chinese remanufacturing industry. I will talk about the latter in another post but... Go CAT!
* December 2005 Commerce Department
**September 2006
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