Remanufacturing: Turning old parts into new opportunities

The McKinsey podcast features an interview with Senior Partner Inga Maurer, who discusses the concept of remanufacturing—restoring used parts to like-new condition for reuse in various products like cars, medical devices, and electronics. Maurer explains the remanufacturing process, its growing importance due to supply chain disruptions and cost-effectiveness, and its sustainability benefits. She identifies the key players involved, including OEMs and independent remanufacturers, and highlights industries with significant remanufacturing potential, such as heavy equipment, aerospace, and consumer electronics. The discussion covers the market size, the impact of tariffs, customer satisfaction, opportunities for improvement on the "make side," the role of AI, considerations for the "buy side," and the long-term sustainability advantages and limitations of remanufacturing.