At the ReMaTec Theatre, which provided the beating heart of ReMaTec 2017, Mike Rayne of FTI Consulting was enthusiastic about the prospects for automotive reman. “We’re in a good place,” he said. With 1.3 billion vehicles in service, plus automotive aftermarket revenue of $550 billion, the remanufacturing industry is now worth about $78 billion.
But he warned that there are challenges in the complexity of vehicle technologies and price-sensitive customers. “So we have a great industry but there are issues in terms of us generating the revenue and profit we need,” he went on. “The reliability of the vehicle life cycle is moving that aftermarket sweet spot. You need to ensure that you have relationships and partnerships, connecting reman, manufacturing and distribution.”
However, new technology such as hybrids and connected cars will provide real opportunities. “Revenue streams from connected vehicles are really exciting,” he went on. “How many industries get a completely new category? Here we have a gift.” The key is to work collaboratively to get market share. “We have a bit of a tailwind,” he concluded.