Opportunities and incentives for Remanufacturing in the Basque Country

Abstract

Remanufacturing is a business model that helps the development of the circular economy. There are numerous successful examples of remanufactured products in different industrial sectors of Europe and US. Obtaining the maximum benefit of remanufacturing is related to the client recognizing the value of his assets at the end of its life, and that the manufacturer makes products that have the functionality and durability required. These aspects, can be improved if the remanufactured products are converted into a product-service systems (PSS). The objective of this research is to identify the opportunities, challenges, drivers and barriers for the development of remanufacturing activities in the main industrial sectors of the Basque Country. The research team has analysed 890 industrial companies, of which 197 companies have been identified the potential to development their remanufacturing process. After that, in order to know the reality of the different industrial sectors of the Basque Country, the research team developed a questionnaire oriented to the companies with the highest remanufacturing potential. In addition, they interviewed the industrial managers and directors of innovation of the 18 leading industrial companies in the Basque Country. The research team estimated that the remanufacturing process in the Basque Country is an emerging activity with great potential for development for 2025. The initial sales estimate for the five priority sectors analysed in 2016 is 63.6 million euros, and for 2025 is 163 million. According to the interviews, the main motivations that companies have for remanufacturing are strategic advantage and differentiation, high product value and high durability of the product. The main barriers identified are access to products, the resulting quality and market valuation.