February 2018 The Global Platform for Remanufacturing
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February 2018 The Global Platform for Remanufacturing www.RemanWorld.com
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CONTENTS
Reman World Joins Powerful
and Growing Alliance Led by RIC
Cover 4,8
New RIC
Chairman Lands
in Sweet Spot
12
AFRA Joins Reman
Association Alliance
RIC news 21-22
Missing in Action Make-over for APRA
New Era at MERA
A shortage of technicians and engineers is already costing remanufacturers Cardone III Rises
world-wide billions of dollars. Mobilizing the workforce of the future is
among the greatest challenges facing the industry 14
People & Parts 5-8
Dangerous Airbags Big Business
Opportunity for Core Dealer
Top automakers
turn to Rebuild-
ers Automotive
Supply for
removal of
Takata airbags
The Reman Day Opportunity
Here is what some Companies are doing about it 10 18
February 2018 03
EDITORIAL
A New Beginning
Published by Reman Media
In association with the Remanufacturing
This edition marks the first anniversary of Reman World. Industries Council, RIC
While we can take no credit for the past 12 months that have been perhaps the Editor/Publisher
most eventful and transformative in the history of remanufacturing, we are pleased William Schwarck
that we were here to play our small part and report on it. Møllekrog 13
3210 Vejby
Let us focus here on two developments of particular significance. Denmark
(+) 45 20558442
The Remanufacturing Industries Council, RIC, became a stronger global voice for william@schwarck.co.uk
remanufacturing, partly by entering into MoU partnerships with five industry
associations from four different reman sectors. US Editor
Niels V. Christiansen
The greatest breakthrough, however, was the formation of the REMADE Institute, 38 Trillium Way,
the private/public US consortium pooling the reman efforts of leading companies, Amherst, MA 01002
top universities, trade associations, national research laboratories and states. The USA
creation of REMADE signifies a historic recognition and elevation of remanufactur- (++) 1 413 348 2399
ing by business, academia and government as an industry of the future. nielsvcusa@aol.com
We are honored to announce that Reman World will be part of this future as the Please submit your
official media partner of the Remanufacturing Industries Council, RIC. As a global news tips and ideas
promoter and organizer of remanufacturing across all industries and borders, and directly to the editors
closely associated with REMADE, RIC represents the same aspirations, ideas and
hopes for remanufacturing that drive us at Reman World. Layout/Design
Marc Bos
For a long time, the remanufacturing industry has deserved a common communica- vmtb@euronet.nl
tions platform, a platform for news, views, trends and developments, a forum Johann Siegerstraat 20
dedicated to the benefits of remanufacturing. And while all of us who are familiar 1096 BH Amsterdam
with the industry know and appreciate remanufacturing as the ultimate form of The Netherlands
recycling, much remains to be done to carry this message to related industries,
decision-makers and, ultimately, the general public.
Reman World, is designed to become that platform and to help carry that message.
As the most recent MoU partner of RIC, we take pride in joining this influential
group. In all, so far, five industry associations representing remanufacturers in four
reman sectors - automotive, printing, electrical and aeronautics (two) - have joined
this growing movement to the furthering of all of remanufacturing.
The time has clearly come to tell the world what remanufacturing is all about – a
superior and rewarding way to ensure that coming generations will inherit a healthy
environment and a sustainable future.
We thank everyone who have used Reman World to present news, views and
information since our arrival last year. To those who haven’t yet, we extend an
open invitation to all corners of the industry to do so. The quality and value of the
remanufacturing is a good story that needs
to be told and told again. Become a Reman World
subscriber - it's FREE
Published and edited by Sign up online at
William Schwarck www.RemanWorld.com
© All rights reserved
Reman World/Reman Media
04 www.RemanWorld.com February 2018
PEOPLE & PARTS
Wabtec Corp. Acquires Accolade for
Arnott Air Suspension
UK Turbocharger Specialist Products
After more than 20 years as an innovator Alliance Parts Warehouse, a major US
in the turbocharger aftermarket Industry, distributor of auto parts, has awarded
UK-based Melett Ltd. has joined the Florida-based Arnott Suspension Products
Wabtec Corp. family. its prestigious Diamond Award.
A well-known player in turbocharger “The award was created to recognize
markets with operations in the U.K., channel partners who distinguish them-
Poland, North America and China, Melett selves through their category expertise,
provides turbochargers and repair parts to quality and knowledge of their sales staff, as
reconditioning and remanufacturing well as their willingness to collaborate in the
customers in more than 100 countries. areas of customer service information
Founded in 1995, Melett has annual sales technology and marketing,”Alliance said.
of 40 million dollars. For more than 25
years, Arnott has
Wabtec Corp. is a global provider of been developing
equipment, systems and value-added and distributing air
services for transit and freight rail. Through suspension replace-
its subsidiaries, the company manufactures ment products and accessories. During this
a range of products for locomotives, time, Arnott expanded globally. Currently,
freight cars and passenger transit vehicles. the company has a rapidly growing pres-
The company has facilities located ence in Europe through Netherlands-based
throughout the world. Ian Warhurst, Melett Arnott Europe.
New Chairman Heading APRA Make-Over
After almost 80 years in the vanguard of As part of the process, according to Robie,
remanufacturing, the Automotive Parts the board is seeking to maximize feedback
Remanufacturers Association, APRA, is from members. After a year’s deliberations
getting a makeover. According to the and exploration, a new vision for APRA is
new APRA chairman, Jay Robie of emerging.
Phoenix Automotive Cores, Phoenix,
Arizona, the process, started during the “The main thing is that we want more
tenure of his predecessor, Omar Cueto, is engagement with the members, so they
nearing some conclusions. feel they have a voice and that they can
reach out to the board and have their
“We are looking at the association from the message heard and ideas considered.”
ground up – the objective, the mission
statement, the board structure, the To further promote member engagement
bylaws,” Robie told Reman World. “There’s and a continuous flow of ideas and energy,
been a consolidation of the industry. term limits on board members are likely to
Companies have gone from small to big. be imposed.
That means fewer companies and fewer
members. So we have to change the “We have people like myself who have
focus.” been on the board since 2009, and we
don’t feel anyone should be on the board
“In the past, the focus has been mainly beyond six years. We believe, the more
about networking opportunities at our ideas come through the organization, the
trade show. But as the dynamics of the better the organization will be,” Robie
industry changes, the way you meet the said.
needs of the members also changes. So we
feel the model needs to be refreshed.”
Jay Robie
February 2018 05
PEOPLE & PARTS
New Era For MERA
David Overbeeke, president and CEO, Raaber, vice president, business and, Russ Schinzing, president,
Brake Parts Inc, was elected new chair- development, Bendix Commer- Electronics Remanufacturing
man of MERA - the Remanufacturing cial Vehicle Systems LLC. Company LLC.
Assocation. He succeeded Peter Butter- Khurana and Raaber take on
field, chairman and CEO, Omega Environ- key duties in shaping the future “I believe our newest directors
mental Technologies. Butterfield who of MERA. will help usher in a new era for
served as MERA chairman for two years MERA,” said John Chalifoux,
will remain on the MERA Board as a In addition, the association has MERA President and COO.
member of its Executive Committee. welcomed three industry “It is an exciting time for the
leaders to its Board of Directors remanufacturing industry,
MERA also elected two long-serving board with effect from January 2018. and these changes will keep
members to its Executive Committee: The new directors are Justin David Overbeeke MERA well-positioned to
Sanjiv Khurana, president, Detroit Diesel Greenberg, CEO, DieselCore advance the business interests
Remanufacturing LLC; and Andreea LLC; David Olsen, CEO, Transaxle LLC; of our members.”
Level Seven Expands Reman Team Power Test and
Level Seven, the supplier of specialised which includes multi-site and multinational Superflow Join Forces
software for the remanufacturing implementation projects. “Ole
industries, has appointed Ole Larsen brings more than 20 years Two leading suppliers of testing equipment
Larsen Enterprise Practice of EPR experience in various for remanufacturers have become one. Last
Manager. distribution and manufacturing fall, Power Test Inc., the dynamometer and
A Danish citizen, Florida-based industries. His leadership and custom test stand manufacturer, acquired
Ole Larsen was a member of the implementation experience is well-known dynamometer specialist
original team that developed essential as Level Seven positions SuperFlow
Denmark’s renowned Navision itself for continued growth in the Technologies.
software, which is now part of reman industry,” Level Seven Power Test CEO
Microsoft. As Enterprise Practise said. “I am excited to join Level Alan Petelinsek will
Manager he will be an important Seven as they expand their be working closely
part of Level Seven’s remanufac- footprint in the Reman ERP with former
turing software practice, Ole Larsen market,” added Larsen. Superflow owner,
Scott Giles, who
will continue as
Leadership Change at Centric Parts general manager at
the company’s Des
Centric Parts, a division of APC Auto management from Michigan State Universi- Moines HQ. Based
motive Technologies, has announced that ty. He is a Lean Master, Lean Six Sigma in Colorado
James Tucci has joined the company as Master Black Belt and Six Sigma Black Belt Springs, Division
Vice President of Operations for the and also is a 19-year veteran of the United Manager Dave Scott Giles
Centric, Qualis and StopTech divisions. States Marine Corps and Marine Corps Arsenault will also
Tucci will be responsible for the company Reserve. continue in his position. “We believe there
warehouse, manufacturing and remanufac- will be tremendous engineering and
turing operations. In addition, he will lead Centric Parts claims to be North America’s manufacturing synergies between these
its Global Quality and Logistics teams. leading manufacturer and supplier of industry leading companies,” Petelinsek
aftermarket brake and chassis components said in a statement.
Bringing a wide range of qualifications to for passenger vehicles, medium duty
his new job, Tucci was Vice President of trucks, fleet vehicles, high performance For over 40 years, Power Test has provided
Operations for Prime-Line Products before vehicles and race cars under the Centric®, specialized test equipment to manufactur-
joining Centric. Earlier in his career he held C-Tek®, PosiQuiet® and StopTech® labels. ers, rebuild facilities and distributors in the
senior supply chain management and Founded in Southern California in 2000, mining, oil & gas, power generation,
operations responsibilities at Fleetpride the company has enjoyed year-on-year marine, trucking, construction, rail, and
Inc., a heavy-duty truck and trailer parts solid growth ever since. Currently, the military markets in more than 90 countries
distribution business. company operates multiple warehouse and on six continents. Founded in 1957 as
manufacturing facilities totalling over one Hicklin GM Diesel, SuperFlow® is specializ-
Tucci holds both Bachelor of Arts and million square feet and employs a work- ing in test and remanufacturing equipment
Master of Science degrees in supply chain force of 850. for vehicle drivelines.
06 www.RemanWorld.com February 2018
PEOPLE & PARTS
Michael Cardone III Becomes Executive Chairman
As the third A co-owner of the world’s largest privately Michael Cardone III also serves on the board
generation of the owned remanufacturer, he has served in of MERA – The Remanufacturing Association.
Cardone dynasty executive leadership roles with C ARDONE,
to rise to the top including aspresident, since 1998. Michael Cardone Jr., CARDONE founding
of the remanufac- owner and board member, said, “I am so
turing giant, “As executive chairman, he will focus on proud to see my son take the role of
Michael Cardone III CARDONE’s long-term growth strategies, executive chairman. As a third-generation
has been appoint- including acquisition activity and the family owner, Michael is well-attuned to our
ed Executive company’s footprint and real estate holdings. rapidly changing industry and understands
Chairman of He also will be responsible for managing what our company needs to do to be
Cardone Inc.’s the board of directors and its processes,” successful. I am confident in his leadership of
board of directors. Michael Cardone III the company said in a statement. our board of directors.”
Harald Benninger Retires Caterpillar Adds to
from APRA Europe Board Marine Portfolio
Harald Benninger, a long-standing profile World. “I’m pleased Caterpillar has announced an updated
of European remanufacturing, has retired to continue working portfolio of remanufactured short blocks,
after decades of service to APRA Europe. in the reman industry long blocks and engines for the Marine
where I have found industry. Ranging from 300 to 700 bhp,
After 20 years as a member of the associa- so many friends and the program provides improved produc-
tion’s European board, Benninger decided good colleagues tivity and efficiency at a fraction of the
to call it a day and focus on his full-time over the years.” Harald Benninger cost of new, while reducing impact on
occupation as co-owner of Germany’s IKA, the environment,” the company said in a
a global supplier of electrical spare parts Having started his career with ZF Friedrich- press release.
for remanufacturing. hafen and contributed to the German
giant’s aftermarket business in Eastern As the world’s leading remanufacturer of
“I have had a wonderful time working with Europe, Benninger joined IKA where he diesel engines, Caterpillar employs state of
my colleagues at APRA, but I feel the time rose to become co-owner and further the art techniques, advanced remanufac-
has come to let others continue this developed the company’s extensive turing processes, and genuine Cat parts to
important mission,” Benninger told Reman network. return each engine to same as new
specifications. “Remanufacturing is more
than rebuilding,” said David Holt from
Bendix Launches New Reman Brake Shoe Caterpillar’s Marketing and Brand Division.
“It’s returning engines and components to
Bendix Commercial Vehicle Systems has mance by resisting premature lining wear their original performance specifications
launched a remanufactured brake shoe and rust jacking to provide full service life,” and latest engineering changes using
with the same friction and coating as its explained Keith McComsey, Director of salvage technologies, strict reuse guide-
OE brake shoe. Like the original OE Marketing and Customer Solutions at lines, advanced manufacturing systems and
version, the brake shoe has an extended Bendix Spicer Foundation Brake LLC unequalled quality control.”
five-year warranty against rust jacking. (BSFB).
“The introduction of the “Rust jacking protection is about
new reman shoe comes as much more than a quality coating,”
Bendix’s remanufactured brake McComsey said. “At Bendix, we
shoe production has topped six also coin 100 percent of our reman
million units,” the company revealed. shoes to return them to OE geometry so
“Bendix’s rate of production has steadily they will perform as designed by OE
increased to meet growing demand from engineers. Many brake shoes are relined,
fleets and owner-operators wishing to not truly remanufactured. And most
replace shoes.” reliners don’t coin. The coining process “Restoring original performance is possible
removes the gap between the shoe and since new Cat engines and engine compo-
“We are focused on offering reman brake friction, where rust jacking can initiate nents are built to be remanufactured for a
shoes that maximize safety and perfor- more easily.” second life.”
February 2018 07
COVER STORY
Breakthrough Partnership:
Reman World and RIC
Join for the Future
For 25 years, the Remanufacturing Industries Council (RIC) has pioneered relationships that connect
industries and promote advancement. Now, Reman World will be the RIC’s exclusive outlet
By Dr. Nabil Nasr
T
oday’s remanufacturing industry As a result of this work the industry was of reman and its integration into larger
is inclusive, collaborative, and characterized in terms of the 12 sectors we business, of course, was a key issue.
growing; a far cry from its recognize today, and, subsequently went on
humble beginnings. The Reman- to identify the technology and business This type of work has already led to
ufacturing Industries Council, needs that could increase the potential of broader unification across industry lines
RIC, a multi-industry business council remanufacturing even further. In turn, this encouraging leaders to recognize where
headquartered in Rochester, New York and led to the idea of creating the partnerships business and technology advancements
supported by the Rochester Institute of which we see today: can benefit everyone. And as recognition
Technology, RIT, has played a major part in has increased, so has RIC’s influence. Right
“We sincerely
making that possible. After twenty-five from the outset, the RIC has been inspired
years of outreach, research, and collabora- by leaders who have changed the face of
tion, there is no more valuable source of
information on new technology, business welcome Reman the reman industry – from Jack Stack of
SRC Holdings and Mark Stratton of CAT to
strategy, and industry opportunity. Now, to
support the industry at large with consist- World as an Bill Davies, the Council’s current chair and
CEO of Davies Office. And with a structure
ent access to the RIC’s valuable resources,
Reman World will act as the exclusive important partner now optimized for inclusion and results,
RIC is attracting engagement from some of
publisher of RIC content. A look back at
how far the industry has come with the
in our work.” the industry’s top talent: Cummins, John
Deere, and GE. There is little doubt that
RIC’s involvement will help highlight this RIC is now poised to become a key player
partnership as a milestone in industry Although each industry is unique, there are in the global remanufacturing industry.
advancement. We sincerely welcome many cross-cutting areas in remanufactur-
Reman World as an important partner in ing where new technology can help A LOOK FORWARD
our work. multiple industries at once. Accordingly, Through it all, RIT has been a champion of
the idea was to get representatives from all industry connections. While many universi-
A LOOK BACK disciplines together and talk about whether ties do technology research, most starts
Before 1993, remanufacturing was a small it made sense to develop an organization and ends in the lab. For RIT, however, the
part of the industrial ecosystem, known to unify the industry and push collabora- goal is to accelerate the timeline between
best only to those whose businesses tion. And so, in a 1994 Rochester meeting concept and commercialization.
depended on it. Groups across industry supported by RIT, the RIC was born.
lines knew little of each other, and industry Accordingly, we want to look at technolo-
at large knew even less of the vast oppor- A LOOK IN gies that companies can use, adopt and
tunities remanufacturing holds. Since then, the RIC has been a key source use to make a measurable difference in
of partnerships, providing a forum for their business. To do that, we need to
At the time, we approached the U.S. discussions and learning that led to a new know what the industry actually wants.
Department of Energy (DOE) and asked for business strategy, best practices, and Because RIT’s focus is applied research with
support to characterize remanufacturing in market growth. At first, we worked to on-the-ground results, supporting the RIC
the scope of broader industry. By better expand the visibility of remanufacturing in means listening to multiple industry
understanding the remanufacturing industry, a broader industrial context, carving out a perspectives and using real needs to guide
the DOE agreed that decision makers place for reman businesses and raising R&D objectives. And with RIT behind it, the
should learn more about its potential to awareness of their benefits. Working with RIC’s strength is growing. The success of
strengthen U.S. manufacturing as a whole. diverse companies to understand the role last year’s RIC-RIT World Remanufacturing
08 www.RemanWorld.com February 2018
COVER STORY
Dr. Nabil Nasr is Associate Provost,
Rochester Institute of Technology,
Director, Golisano Institute for
Sustainability, Chairman and CEO,
REMADE Institute, Director, co-founder of
the Remanufacturing Industries Council
Conference attracted international atten-
tion, leading the organizers of the World
Remanufacturing Summit to choose RIT for
its 2018 event.
Although each
industry is unique,
there are many
cross-cutting areas in
remanufacturing
where new technolo-
gy can help multiple
industries at once.
And now, with the announcement of an
exclusive publishing arrangement with
Reman World, the ability to communicate
these opportunities to the industry at large
will be better than ever. As an outlet for
industry news, company outreach, and
technology education, Reman World
provides a platform to reach many stake-
holders on level ground. This accessibility is
key to ensuring the industry as a whole can
grow. Remanufacturing is growing in
market share, and becoming a key part of
an evolving global industry. More and more
cutting-edge research is being focused on
capturing its economic and environmental
potential. But creating results for a better
future means everyone must be involved.”
Thanks to Reman World, the RIC, and the
unique support of RIT, now they can.
09
TELLING THE REMAN STORY
Gearing Up for First
Ever Reman Day
Remanufacturing companies across the globe will have their opportunity to engage with the general
public on a large scale on April 12. Here is what some companies are planning
T
he brainchild of RIC, the
Remanufacturing Industries
Council, Reman Day is
intended to promote
remanufacturing on a
world-wide scale and celebrate remanu-
facturing with an Annual Reman Day on
the second Thursday of April each year.
“Remanufacturing has reached a level
where there are so many good reasons
for industry leaders to commit to
spreading the message beyond the
industry itself,” said Jena Holtberg-
Benge, who was appointed Head of SRC, Springfield, Missouri
Remanufacturing at John Deere last
year. Holtberg-Benge has been charged Big Local Event
by RIC with spearheading the Reman
Day project over the next few years. Other local companies, including John Displays showing cores alongside finished
Deere Remanufacturing, are partnering in products, so visitors can compare hands-on
“In the mid-term, the ambition is to the SRC event. a pile of core and a high-quality finished
involve reman businesses and organisa- reman product with a full warrantee.
tions across the world in spreading the The idea is to use the first Remanufacturing
message of reman to a much wider Day as a major local community awareness Group tours where participants can see a
audience than is the case today,” she event, focusing mainly on educators and working SRC reman operation in one of the
added. “Education is one of the areas influencers. company’s 10 divisions.
where much needs to be done. We plan
to establish closer contact with educa- “ We will do this in the form of a a trade Product giveaway. “We’re even thinking of
tional institutions in order to explain show, combined with a half day event at donating a vehicle with remanufactured
what reman is all about and its benefits one of our locations,” explained Vaughn driveline and engine or other components
for Earth. On top of that, of course, it’s Henson, General Manager of SRC Logistics. to a family in need, perhaps a single parent
good for business which is why so many “For this we’re inviting a who needs a vehicle to go to
important companies are now including broad spectrum of partici- work,” said Henson. “We want
reman in their business models.” pants from the community to get some goodness out of it
– including schools, local by getting a remanufactured
Among these are Holtberg-Benge’s own and state legislators, the product into someone’s hands,
company, John Deere Remanufacturing, governor, our senators the who otherwise wouldn’t be able
and Springfield Remanufacturing business community, to afford it.”
Company, SRC, both headquartered in suppliers, partners and
Springfield, Missouri, and America’s vendors. We’re also reaching Overall, SRC wishes to focus on
Remanufacturing Company, operating out to local newspapers and three major themes: The value
out of Augusta, Georgia. TV stations.” proposition of remanufacturing,
the environmental impact and
SRC’s planned activities local job creation.
include: Vaughn Henson
10 www.RemanWorld.com February 2018TELLING THE REMAN STORY
John Deere Remanufacturing, Springfield, Missouri, and
Edmonton, Canada:
Global Event for Sister Companies
and Stakeholders
“The jobs aspect is probably closest to my In addition to plugging into local communi- formal program – educational sessions for
heart,” said Henson. “At SRC Logistics, we ties with SRC, John Deere Remanufactur- dealers, internal stakeholders, and external
handle the inflow and outflow of all cores, ing in Springfield and Edmonton is going partners. They will be doing tours of our
so right now we do about 70 million global on Reman Day. facilities, and we will have
pounds of core per year. In total, this videos and animations and,
amounts to around 2.5 million pieces. General Manager Jena in general, focus on educat-
Every one of those pieces is transported, Holtberg-Benge, John Deere ing our internal stakeholders
evaluated, sorted by a person. To remanu- Reman: in the John Deere organiza-
facture all of these products takes a lot of tion.”
highly skilled, highly trained people, so we “My team feels this is such a
want to emphasize the human side, the good opportunity for us to “On the dealerside, we have
jobs, involved.” educate internally – other targeted key distribution
engineers, sister factories, partners to come in. This
“Once you educate people on the benefits, and, as an example, the will give us an opportunity to
they become fans. If they are not educated, designers in our tractor facility tell them either “you’re
they go by a core yard, and they just see a in Waterloo, Iowa. We believe doing a great job leveraging
pile of rusty metal. Until you educate them, this is a great opportunity for Jena Holtberg-Benge remanufactured parts”, or
they’re not going to know the value, but them to learn about remanu- “we think there’s an oppor-
once you do, they realize there’s not a facturing and how to design for remanufac- tunity here for you to do more.”
single downside to reman. Its a great turing – which will help us in the future.”
message, but education is the key, and “We are also doing webinars for our global
that’s what we want to contribute to.” “In Edmonton and Springfield we have a audience.”
America’s Remanufacturing Company, ARC, Augusta, Georgia
Family and Friends
A fast growing US reman recognize the benefit of Georgia Cyber Innovation
company, ARC is specializing in knowing what people do for and Training Center for cyber-
reverse logistics and remanufac- a living, and that’s why our security there.
turing of small appliances, inaugural Reman Day is focused
vacuum cleaners, hand power on friends and family.” There’s a lot of flashy jobs.
tools and outdoor power But there’s also a lot of great
equipment. ARC has grown “We want them to get a clear jobs in remanufacturing with
from 40 employees a few picture of the value of what tremendous long term value.
months ago to 100 today, with their mother, father, husband,
more hirings to come. The wife, sister or brother do every “So we are reaching out to
company is located in Augusta, day. I want them to see educational institutions and
Georgia. returned goods become like hoping to add a technology
new again and how they’re and trade school focus and
Paul Adamson, Chief Revenue helping to keep things out of have high school programs
Officer: landfills.” come in, as well.”
Paul Adamson
“I want people to understand “Augusta is an interesting
what their family members do military contractor and all I market. There’s a heavy medical
for a living. My father worked knew was that he was an and military influence, and
on top-secret projects for a engineer of some sort. So I they’re building the new
February 2018 11IN THE NEWS
Disharoon New RIC Chairman
as Industry is in Sweetspot
John Disharoon of Caterpillar Inc. brings global expertise and practical outlook to the
chairmanship of the Remanufacturing Industries Council
A
s a globe-trotting dynamo at In much of his 30 year career at the think is the largest cross section of remanu-
Caterpillar Inc., John Disharoon company, Disharoon has operated at the facturing industries of any association.”
has vast direct experience from highest levels, currently as Director of
the frontlines of remanufactur- Market Access for Reman. As a result, his In all, eight of 12 current remanufacturing
ing around the globe. With practical and strategic hands-on experience industry sectors are represented on the
reman baked into its business model, and knowledge of the issues facing RIC and board of RIC. They include motor vehicle
Caterpillar has built the world’s biggest remanufacturing across the globe may be parts, office furniture, IT and imaging
remanufacturing operation. unmatched. products, consumer products, electrical
apparatus, medical devices, heavy-duty and
His predecessor in the RIC off-road equipment and machinery. The
chairmanship, Bill Davies of four sectors yet to be represented are
Davies Office is widely credited aerospace, locomotives, retreaded tires and
with infusing energy and urgency restaurant equipment.
to the job of making RIC the
central organization for further- “I’m confident that we’re going to gain
ing remanufacturing on a global some continued interest from the remaining
scale. Not surprisingly, based on four sectors,” said Disharoon. “We must try
his background, Disharoon is to get everybody represented. This is a
poised to build on this with a great time to be a remanufacturer.”
pragmatic and practical ap-
proach. The reman sectors were identified in the
Technology Roadmap for Remanufacturing
“I just want to continue execut- in the Circular Economy, outlining the way
ing our vision of education, forward for the entire industry. The future
collaboration and advocacy for outline of a dynamic, efficient and increas-
the remanufacturing industry ingly important part of a sustainable world
that we serve,” he told Reman economy was developed under the
World following his election to leadership of the Golisano Institute for
the chairmanship at the end of Sustainability at the Rochester Institute of
January. Technology with the support of RIC, among
others.
“I believe that Alongside his considerable reman responsi-
the next big bilities at Caterpillar, Disharoon is looking
forward to accelerating the progress along
wave is upon the road map.
us.” “I’m going to be a very open chair and
listen to ideas, concerns and comments
from our members of the association,“ he
“We are in a sweetspot now in said.
the industry. The economy is
starting to improve. Business is THE BENEFITS OF REMAN
picking up across the globe for Overall, Disharoon is a strong believer in
our members and we have to the benefits of remanufacturing and in the
provide a good service to what I growing potential of the industry. This is
12 www.RemanWorld.com February 2018IN THE NEWS
John Disharoon, a popular speaker at
reman events, brings his hands-on
approach to the RIC chairmanship
common interest of the industry and will
enable it to “crack some of its engineering
challenges much quicker than we could do
on our own.”
“Rather than scientists, academics and
professors writing papers on what they
think is intriguing, they can collaborate with
industry on projects designed to meet
clearly identified market demands, and we
can do it sooner.”
REMAN DAY
In the promotion of remanufacturing to
lawmakers, educational institutions, the
young work force of the future and the
general public, Disharoon sees the inaugu-
ral global Reman Day on April 12 as an
important step forward.
“Reman day is exciting,” he said. “Last
year, Caterpillar participated in the fully
established Manufacturing Day at Cater
pillar facilities across the United States.
Reman is a relatively small portion of
Caterpillar but a very important one. So we
want to get our facilities engaged. We’re
going to have people looking at us who
may not have much of an idea of what
reman is about outside of our industry, and
that will be a good thing.”
partly due to his own experiences with REMADE CRUCIAL
Caterpillar and partly because of the In his view, this wave is closely aligned with “Being the first year of this, our goal is to
increasingly strong demands for sustainabil- the increasing importance of the field of put it on the map and make it as big as we
ity among authorities, manufacturers and electronics components and technological can. The very first Manufacturing Day had
consumers. advances, which among many benefits will only a small participation, and the same
enable remanufacturers to improve cleaning may be the case for the first Reman Day.
“There are opportunities in remanufactur- and salvage processes. But if we can get more companies to put
ing that we have never seen before as OEs it on the calendar that will be a success
demand more and suppliers supply more Disharoon sees the establishment of the in my book. We can build off of that
reman products. The last few years have REMADE Institute as a crucial development. momentum for years to come. It’s certainly
also helped us lowering operating costs for This private/public consortium of academia, a good concept for remanufacturing and
customers, and today there is greater industry, trade associations, national anybody involved in the industry should
acceptance from customers and regula- research laboratories, states and the US support it.”
tors,” he said. “In fact, I believe that the Department of Energy, Disharoon believes,
next big wave is upon us.” is bringing the best minds together in the
February 2018 13SKILLS GAP
Reman Industry Challenged
by Widening Skills Gap
Remanufacturers world-wide are already missing out on billions of dollars in annual revenue because
of a shortage of skilled workers for unfilled technical jobs. Developing the workforce for the future
will largely be in the hands of the industry itself
O
By Niels V Christiansen, US Editor
n the threshold of a new age sector of Federal Aviation Administration TOP CONCERN
for remanufacturing, the certificated repair stations in the US at The wider aeronautics industry, which
otherwise promising outlook about 11,000. Assuming a constant level of includes one of the largest global reman
is threatened by a shortage unfilled jobs throughout the year, the sectors, is facing an overall need to expand
of engineers and skilled estimated loss in revenue for the US the number of high skilled technicians by
technicians that is only projected to get aviation repair stations was on the order of 679,000 worldwide by 2035, as tens of
worse, especially in the United States. $1.95 billion. thousands newer generation aircraft are
put into service, according to a 2016
A study by the Aeronautical Repair Station “These numbers are a snapshot of how just outlook report by Boeing. The needs
Association, ARSA, whose members one industry segment is being affected by include Asia Pacific (268,000 new techni-
maintain commercial airliners around the the technical worker shortage plaguing the cians), the US (127,000), Europe (118,000),
world, provides the most recent illustration US economy,” ARSA Executive Vice the Middle East (66,000), Latin America
of the challenge. President Christian Klein said. “Well-paying (50,000), C.I.S./Russia (26,000) and Africa
jobs in the high-tech aviation maintenance (24,000).
Based on a 2017 survey among its member sector are going unfilled because workers
companies, ARSA estimated the number aren’t available or candidates lack basic The repair station skills gap numbers are in
of open technical positions in the entire skills.” line with those of more general manufac-
14 www.RemanWorld.com February 2018SKILLS GAP
turing industry surveys. They confirm one GROWING COMPETITION national levels of training, partly because of
of the top concerns for today and the “Finding technical workers is always going longstanding apprenticeship traditions, the
future expressed by remanufacturers in all to be a challenge,” stated Klein. “And then US industry is primarily recruiting from a
sectors who depend on skilled workers and you throw on top of that, as hot as the much larger proportion of workers with less
technicians. economy is, the potential for additional formalized education and lower skill levels.
infrastructure, which is also
The skills gap across increas- going to suck up talent in the In Europe, one major European Union
ingly high-tech industries has engineering and technician objective is to narrow the skills gap by
been documented for dec- realm. Someone’s going to run increasing the labor market participation
ades. It is widening because and fix the machines, some- by about 4 percent to 75 percent of the
increases in demand are one’s going to design the new population aged 20 to 64.
outstripping the supply of bridges and water systems. So
newly trained and educated you have a lot going on that’s To combat the immediate skills gap, US
high-skills workers. going to exacerbate the trade organizations, legislators, companies
problem.” and educational institutions are engaging
MILLIONS OF JOBS at a variety of levels and ways to develop
TO GO UNFILLED Meeting the skills gap chal- and retain workforces regionally, locally
In the US, over the next lenge will be a central theme and often one company at a time.
decade, more than 3.4 million across the remanufacturing
manufacturing jobs will need Christian Klein industry for years to come, yet As other trade organizations, ARSA works
to be filled, and the skills gap even as it affects remanufac- with lawmakers in Washington to promote
is expected to result in two million of those turers around the world, the full scope of the passage of policies funding educational
jobs going unfilled, according to a 2014 the problem has never been mapped out. programs and tax benefits for companies
analysis by the National Manufacturing that hire and train technical workers.
Institute and the Deloitte management MAPPING THE CHALLENGE Like ARSA, some also collect and share
consultancy. In the US, new direction and best practices among their
innovation may come from the members.
The two major contributing factors to the newly formed private/public
widening gap are retirements in the REMADE Institute, pooling Adopting the European style
post-World War 2 baby boomer generation academic, business, trade apprenticeship is among the
and general economic expansion. An association and research most promising remedies
estimated 2.7 million jobs are likely to be laboratory forces to improve garnering interest in the US.
needed to be filled as a result of retire- reman and other manufactur-
ments of the existing workforce. The other ing processes. According to GOING REMAN GREEN
700,000 jobs are likely to be created due to Todd Oldham, Education & But mostly, remanufacturers
natural business growth. Workforce Strategist at train their own recruits, set up
REMADE headquarters in training programs with local
“Meeting the skills
Rochester, New York, the technical high schools or
institute is gearing up to make colleges or look for other
gap challenge will a baseline labor market report Todd Oldham
about the occupations that are
creative ways to attract, train
and retain technicians and
be a central theme influenced or impacted by remanufacturing,
such as electric design engineers and
other skilled workers.
across the remanu- technicians. A major hurdle for remanufacturing is the
competition for the same shrinking pool of
facturing industry “We are going to look at what the demands
are in different parts of the country and the
engineers, technicians and other skilled
workers with more trendy and often higher
for years to come” skillsets that are being asked for,” he said.
“We want to learn where the gaps are and
paying industries.
how we can close them over time.” So far, the reman industry has failed to
Just like the aviation maintenance, repair create awareness of perhaps the strongest
and overhaul industry, which is projected to Oldham is expecting the baseline report to selling points of remanufacturing, particu-
grow from $75 billion in annual revenue to be completed late this year. larly among the young generation it needs
$100 billion over the next decade, remanu- to attract - as a green industry of the
facturing across the board – from automo- STRATEGIES future, preserving resources, saving energy
tive and trucks to medical equipment, Strategies to cope with the existing skills and building local economies.
heavy equipment, printing, electronics, gap vary widely.
furniture and other sectors - is in for sharp A first concerted step in that direction will
growth, world-wide. Whereas some European countries and be the first annual Global Reman Day on
most notably Germany, already enjoy better April 12. (page 10)
February 2018 15NEWS
CoremanNet Strengthens
Presence in North America
The award-winning international core return service, offered by Circular Economy Solutions
GmbH, C-ECO, is now up and running in North America
O
riginally developed a decade American CoremanNet
ago, the CoremanNet operation.
concept combines reverse
logistics software and “Currently, the clients are
information system and full remanufacturers in the auto-
logistics support for the automotive motive aftermarket. We offer
remanufacturing industry. It promises to whole core management,
take the headaches out of the core return picking up the cores from
process for companies of all sizes and customer locations, bringing
needs. them to our collection stations
for identification and evalua-
C-ECO was established two years ago as tion, and on to the remanufac-
an independent spin-off company from turers. If needed, we also offer
Robert Bosch GmbH in Göttingen, Germa- warehousing.”
ny. The US office was set up in Chicago to Andreas Frey, building core management network in
develop the North American operation of FLEXIBLE SOLUTIONS North America.
CoremanNet. “Our service solutions are
flexible. We can easily work with compa- remanufacturing are refurbished, reused or
WHOLE CORE MANAGEMENT nies that have no core management or otherwise recycled.
World-wide, the company has more than experience with core management. We
20 collection points, mainly in Europe. In offer consulting up to building their core CoremanNet was awarded the German
North America, CoremanNet is running management, specifically based on their government’s Bundespreis Ecodesign
two collection facilities, one in the US and needs, with core management at their site (Federal Eco Design Award) in 2015 for its
one in Canada. In all, CoremanNet handles or by using our external core facilities.” innovative approach to creating an efficient
about 3 million used automotive parts core return system and for leadership in
per year. C-ECO is planning to expand the range of contributing to the building of the environ-
core return services to other industries, mentally friendly circular economy. C-ECO
“Fifty percent of the market is in the US. such as power tools, appliances and is also among 120 companies admitted to
To be in the heart of it, we decided to printing cartridges. the Ellen MacArthur Foundation program,
establish a local presence,” said Andreas recognising leaders in circular economy
Frey, who is heading up the North Collected cores and parts not suited for development.
MEMA Promotes Reman in NAFTA Appeal to Trump
M
EMA, the powerful trade associa- export globally.” The letter 3. Standardize the rules of origin for
tion for USA’s motor industry and lists five specific recommenda- automotive parts to allow the options
the parent body of MERA - the tions to improve NAFTA: for either tariff shift or RVC with no
Remanufacturing Association, has included required tariff shift;
remanufacturing in an important message 1. Recognize innovative 4. Ensure that aftermarket parts, including
to President Trump. Recommending that technology developments remanufactured goods, are not treated
the president continue to negotiate with by providing suppliers a differently from new goods imports.
Canada and Mexico concerning sustaining framework to include 5. Provide incentives to U.S. companies
and improving the controversial NAFTA research and development (R&D), to train and expand the U.S. workforce.
agreement, MEMA includes remanufactur- engineering, designing, and software
ing in five key points. These, MEMA said, development expenditures in regional In the letter, MEMA emphasizes that
aims at “strengthening our nation’s ability value content calculations (RVC); withdrawal from NAFTA would put 250.000
to manufacture products in the U.S. and 2. Retain tariff shift for automotive parts; American jobs at risk.
16 www.RemanWorld.com February 2018I N T E R N A T I O N A L
BIG S H OW
A U G U S T 8 – 1 0 , 2 0 1 8
The #1 Reman Show in North America
• Network with 10,000+ Industry Leaders
• Grow Your Business - sell, order and close deals!
• Keep Up-To-Date with Industry Trends & Developments
• Interact with Top Supplier/Vendors at the
Trade Show — over 600 exhibitors
2018 International Big R Show
August 8-10, 2018
Atlanta, Georgia
Co-located with NACE Automechanika
For more info, visit www.apra.org/2018BigRCORE COLLECTION
Leading Core Dealer RAS Rides
High on Takata Airbag Debacle
Top automakers turn to core dealer for removal of dangerous airbags
I “The extension of
n the wake of the ongoing airbag “With our broad industry experience, RAS
debacle, safety recalls are offering is in a unique position to bring together all
our core business
major opportunities for a leading US recall stakeholders and provide solutions
core dealer. The Takata airbag affair has that satisfy OE and Governmental require-
into airbag recalls
caused a huge auto safety recall, and ments,” RAS CEO Bob Grady told Reman
Rhode Island-based Rebuilders Automotive World.
requires a new level
Supply, (RAS) has taken a lead in a new
business area - as the recall partner of “The extension of our core business into
of sophistication.”
some of the world’s largest carmakers. airbag recalls requires a new level of
Partnering with automotive giants Honda, sophistication in dealing with 50 states
GM, Subaru, Mazda, Toyota, and Mitsubi- worth of Departments of Transportation
shi, RAS has been charged with collecting
some of the millions of dangerous Taka-
ta-made airbags to be removed from
passenger vehicles.
So far, The Takata airbag recall encompass-
es 19 automakers, 22 brands and more
than 42 million vehicles. In total, almost 70
million airbag inflators worldwide are or
will be under recall by 2019.
In the recent words of U.S. Secretary of
Transportation Anthony Foxx, the huge
recall is “the most complex consumer
safety recall in U.S. history.”
A longstanding player in the global
automotive remanufacturing industry, RAS
first added recalls to its business in 2014,
when the company kicked off its first recall
program, taking faulty GM ignition
switches out of circulation.
The Takata debacle dates back to 2013
when the Japanese airbag manufacturer
admitted that its airbags carried the risk of
exploding or malfunctioning. Since then,
some 40 motorists are reported to have
been killed and almost 200 injured by
faulty Takata airbags. Takata has now filed
for bankruptcy.
Bob Grady with airbag slated for
d
estruction.
18 www.RemanWorld.com February 2018CORE COLLECTION
and HazMat regulations as well as high
demands for on-time reporting up to the
time of destruction,” he said. “We are fully
confident in our ability to manage and
grow this segment.”
BUSINESS OPPORTUNITY
Following the initial GM Ignitions switches
campaign, when the company was award-
ed the GM Supplier of the Year distinction,
automotive recalls have emerged as an
important business segment at RAS. Rebuilders Automotive Supply CEO Bob Grady (far left) and the growing recall business
The company has continually added human team at headquarters in Rhode Island. RAS made its name in cores and catalytic
resources to its recall team to ensure the converters, but safety recalls is becoming a substantial part of the business.
flow of recalled parts from the auto
recyclers to their final destruction. So far, RAS has collected 155,000 airbags The addition of ‘recall’ to its portfolio
for destruction. Grady expects the airbag provides another example of the
“In the airbag program RAS comes in when program to continue for many years. opportunities open to the reman industry
the OEMs have lost contact with the as the world is looking for sustainable,
original owner of a vehicle,” explained HIGH EXPECTATIONS resource-saving solutions.
Grady. “It may have gone to a salvage yard “Handling recalls brings heightened
through an insurance company, and now expectations. The RAS recall business Rebuilders Automotive Supply operates
the car is sitting there, and there is no way team is using the company’s established 300,000 sq. feet of real time inventory
to tell someone to get that bag out of that proprietary receiving technology on the storage space, 40 product lines, and over
car. We are tasked with getting the VIN, large volume of airbags,” Grady explained. 3 million cores sold per year. In addition to
finding that vehicle, procuring that bag and the main facility in Coventry, Rhode
making sure it disappears from the market. “We’re very much expecting the recall Island, RAS operates a facility in Tampa,
We buy it, and it gets destroyed.” side of our business to progress further. Florida.
Advocate Collaborate Educate
DRIVING REMANUFACTURING FORWARD
www.RemanCouncil.org WorldRemanConference.comThe First Ever Reman Day is Coming!
April 12, 2018
We encourage all
of our members
to get involved in
order to promote
their business
and the value of
remanufacturing.
What is Reman Day?
Reman Day promotes the important
part your company plays in
remanufacturing. As a key member
of the circular economy, Reman Day
demonstrates the innovative ways
members of all industry sectors are
advancing remanufacturing and
substantiates the positive environmental
impact of this global industry. www.remanday.org
brought to you by in collaboration withRIC NEWS
AFRA Becomes Fifth Reman
Association to Sign RIC MoU
Reman World isn’t the only new member of the growing reman alliance headed by the Remanufacturing
Industries Council, RIC. In late 2017, The Aircraft Fleet Recycling Association, AFRA, became the fifth
leading remanufacturing association to sign a Memorandum of Understanding with RIC
I
” t has been a strategic objective for the management of end-of-life aircraft and members, a Best Management Practice
Board to engage with key industry components. (BMP) Guide, compiled by the association,
organizations whose activities influence has significantly improved the management
our businesses on a regular basis,” AFRA represents companies from across of end-of-life aircraft in terms of environ-
stated AFRA President Derk-Jan van the globe and throughout the supply-chain mental and sustainable performance.
Heerden when he announced the – from manufacturers to materials recyclers.
collaboration with RIC to his association. Nearly every major aircraft and engine An estimated 12,000 aircraft will be retiring
manufacturer – including Boeing, Bombar- in the next two decades, and AFRA is
Established in 2006, AFRA is the leading dier, Embraer and Rolls-Royce – are involved with aerospace leaders in devel-
global organization for developing and members of AFRA. oping new strategies for management of
promoting the safe and sustainable end-of-life aircraft, from parts distribution,
Through the collective experience of its to dismantling and materials recycling.
RIC taking ACE Award Nominations
The Remanufacturing Industries Council, associated with all remanufacturing The Educate award will go to a recipient
RIC, is accepting nominations for the industry sectors. The award categories who demonstrates passion toward
second annual Remanufacturing ACE correspond to the mission of RIC. educating others on the benefits of
awards, recognizing people or organiza- remanufacturing and sustainability.
tions who make extraordinary efforts on The Advocate award is awarded for
behalf of remanufacturing. promoting Remanufacturing or sustainabili- For more information and making nomina-
ty in business, government, education or tions, visit RemanACEawards.org
Three winners in the three categories other field.
- Advocacy, Collaboration and Education
- will be announced at the RIC-RIT World The Collaborate award recognizes collabo-
Remanufacturing Conference in Rochester, ration with other companies, regulatory
New York in September. bodies and lawmakers to build consensus
and team work in order to promote
The ACE Awards are the first awards remanufacturing and other sustainable
recognizing people or organizations practices.
February 2018 21RIC NEWS
Proposed ISO Reman Standard Michelle Hayes,
Now available in Chinese
RIC Business Manager
The text of the US ANSI remanufacturing Michelle Hayes, the translation with our proposal,” Hayes
standard, which is about to go through a into Chinese was made by a said. “As we were communi-
three year process to be turned into a an request from Chinese govern- cating with them about it,
official global ISO standard, is out in a ment officials. they wanted to be able to
Chinese translation. read the text in their own
“The Chinese tried to propose language. So we have
The official ISO languages are English and an ISO standard for remanufac- provided a translation and
French, but according to Remanufacturing turing in the past, and it hasn’t gone put it up for anyone interested on our
Industries Council Business Manager through, so we want them to get on board website at remanstandard.us.”
Covering a Wide Span of Remanufacturing
With eight of the 12 reman sectors repre- motor vehicle parts, office furniture, IT and own representatives are restaurant
sented, the newly elected Remanufacturing imaging products, consumer products, quipment, locomotives, aerospace and
e
Industries Council Board of Directors spans electrical apparatus, medical devices, retreaded tires).
wider than those of any other large reman heavy-duty and off-road equipment, and
organization. Board members come from machinery reman sectors. (Yet to have their
The following Officers were elected to serve until 2020:
John Disharoon Vaughn Henson Jena Holtberg-Benge Michael Schmit William Davies
Chairman Vice President Secretary Treasurer Immediate Past Chairman
The following Directors were elected this year to serve a They will join the existing Directors who will serve until 2019:
two-year term: • Vaughn Henson, SRC Logistics
• Paul Adamson, America’s Remanufacturing Company • Bruce Krueger, CNHi Reman
• John Disharoon, Caterpillar • Nabil Nasr, RIT/REMADE
• Steven Holden, Carlyle Compressor (Carrier Corporation) • Jeffrey Stukenborg, WABCO Reman Solutions
• Jena Holtberg-Benge, John Deere • Todd Wieland, Cummins
• Donald Olson, Nokia
• Michael Schmit, GE Healthcare •W
illiam Davies will also serve as a Director in the newly created
• William Schofield, Advanced Electrical & Motor Controls Officer role of Immediate Past Chair.
RIC MOU PARTNERS:
Remanufacturing Automotive Parts Aeronautics Repair Aircraft Fleet International Imaging Professional Electrical Reman World/
Industries Council, RIC Remanufacturing Station Association, Recycling Association, Technology Council, Apparatus Recondi- Reman Media
Association, PRA ARSA AFRA I-ITC tioning League, PEARL
RemanCouncil.org APRA.org ARSA.org AFRAassociation.org I-ITC.org pearl1.org RemanWorld.com
22 www.RemanWorld.com February 2018You can also read
