The McKinsey Podcast Remanufacturing: Turning old parts into new opportunities
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Oct 23, 2025 Inga Maurer, a Senior Partner at McKinsey specializing in manufacturing and circular-economy strategies, delves into the world of remanufacturing. This transformative practice restores used parts to like-new condition, significantly reducing waste. Inga discusses its rising importance across various industries, including aerospace and electronics. She also highlights the market's projected growth, sustainability benefits, and how AI can enhance logistics and quality control. Listeners gain insights into the future of manufacturing and the vital role of resource conservation.
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What Remanufacturing Actually Is
- Remanufacturing restores used components (cores) to like-new condition through disassembly, cleaning, part replacement, reassembly, and testing.
- It reduces cost and supply-chain risk while improving sustainability, often cutting prices 40–60%.
Prioritize Core Collection Channels
- Build reliable core-collection channels because cores supply 70–90% of a remanufactured part's value and reduce unit costs.
- Use OEM, tier-one, or independent remanufacturers and consider partnerships with repair shops and brokers to secure cores.
A Rapidly Growing $50B Market
- The global remanufactured-parts market is roughly $50 billion today and could double to about $100 billion in 3–4 years.
- Remanufacturing currently represents about 2% of manufacturing but is poised for significant growth across sectors.