Today, I spoke with a company that has been remanufacturing its own parts for more than 40 years, long before “circular economy” became a common term.
Three learnings stayed with me.
1. Circular strategy is market-specific
There is no single circular offer that works everywhere.
Markets differ in:
- customer acceptance
- economics
- the conditions that make repair, used parts or take-back viable
The opportunity?
Identify where the conditions are right, and build the circular offer around that market.
2. Cannibalisation is a question, not an inevitable outcome
Will remanufactured parts take sales away from new parts?
It’s a legitimate business question.
But after four decades, their experience is clear: new-part production is not at risk.
3. The business model is the make-or-break factor
Remanufacturing isn’t run as a sustainability initiative.
It’s run like any other business line: margins, volumes and customers.
If the business model doesn’t work, the circular strategy won’t either.
The strategic question
The question isn’t just:
What can we recover from this product?
It’s also:
Where does a circular offer make commercial sense?
and
What business model makes it viable?
A global framework can set the direction.
But should the circular offer be the same in every market?
💬 What’s your experience? Share your thoughts in the comments.