John Deere is investing $13.5 million to expand its Strafford, Missouri, Remanufacturing facility by 120,000 square feet. Kevin Schrag, the factory manager, sums it up perfectly, “That's a pretty big deal!”
What Is Remanufacturing?
Remanufacturing is all about taking used, worn-out products and transforming them into like-new condition. This involves disassembling, cleaning, processing and qualifying the raw material, known as "core." The core can be anything from large components like axles and engines to small parts like fuel nozzles and electronic displays. If a core doesn't meet John Deere standards, it's scrapped.
Why It Matters
The goal is to use as much core as possible without compromising on quality. Many parts, like bearings and seals, are always replaced with original John Deere parts.
With the new building, John Deere will start collecting core early in the program, even before remanufacturing certain engines. This allows them to build up a pool of parts and launch programs efficiently.
Benefits For Dealers And Customers
For customers, remanufactured products are up to 30 percent cheaper than new ones, without sacrificing performance or warranty.
This cost-effective solution helps dealers too, especially during technician shortages. Replacing a complete engine can save a dealership an average of 40 hours, allowing them to serve more customers quickly and efficiently.
And There's More
John Deere Reman is continuously adding new products. Recently, it launched motor grader axles, multiple Final Tier 4 engine models, turbos, and engine controllers. Last year alone, it introduced $20 million worth of new products, bringing the total to 2,300 unique part numbers.