He continues, “The time savings associated with the program also help rental companies maintain a competitive edge — in a time when it matters most. Regardless of the state of the market, we expect the CNH Reman business to continue to grow and be a draw for customers everywhere.”
Remanufacturing programs felt the impact of the most recent economic downturn like most areas of the construction business did. Lower machine utilization led to fewer component failures and that translated into lower-than-normal demand for machine refurbishment programs.
“When the economy hit bottom in ‘07/’08, all businesses were affected. Equipment owners were no different,” says Lambeth at Bobcat. “But these times are when remanufacturing becomes a valuable option due to the length of time people hold onto their equipment. Repairing equipment vs. buying new at times makes more economic sense. We see remanufacturing as a great opportunity for growth and are investing in programs to continue to educate our dealers and our customers on these options.”
Wagner at Deere says the Reman Reload business was less severly affected by the downturn than many other areas of the industry. “I think that shows the high value that our customers place on remanufactured solutions. And when times are tough they continue to spend what little money is available on a solution they can count on minimizing their costs in the long run.”
He continues, “It’s no secret our customer base is changing rapidly and will embrace solutions that improve uptime and minimize their operating costs. Remanufacturing is an idea whose time has come, and I see our customers leveraging this concept more in the future to make the most of their machine purchases.”