Make sure you calculate the true costs before rebuilding equipment. "While remanufactured product may be a solution for some customers, the cost of rebuilding equipment must be balanced against the cost of new technology," says Jenkins. "Some customers believe that rebuilding equipment is a lower cost solution than purchasing new technology and this may be true in some cases. But unless a customer has an adequate facility and the associated expertise, rebuilding equipment can come with risk."
Weight these risks before you proceed. "There are limited opportunities to recover labor costs with remanufactured components and, in some cases, limited or no warranty on the parts themselves," says Jenkins. "Also, a remanufactured component does not address the components bolted onto it; not the sensors and wiring harness that link it all together. So while the cost stream may be lowered for the component installed, it does not slow down the cost stream of the remaining vehicle."