Leading engine remanufacturer, Ivor Searle, has reported its most successful 12-month trading performance since the company was founded in 1946, as demand for its superior-quality remanufactured engines surges.
Having achieved growth of 35 per cent in remanufactured engine sales over the past year, the Cambridgeshire-based firm has expanded its operational capacity in response to demand from UK and EU customers. The company is currently producing up to 150 engines per week, its highest throughput ever and anticipates that this will grow further during 2022 with the introduction of additional units to its range of petrol and diesel powerplants.
A combination of macro-economic factors, such as the increased service of vans during the pandemic and the ongoing global semiconductor supply shortage, has seen the benefits of sourcing remanufactured units reach a wider audience, as Ivor Searle’s Commercial Director, David Eszenyi, explains:
“During the first lockdown in 2020, our orders started to climb significantly as van fleets were worked around the clock, placing severe stress on older vehicles. Coupled with this has been the impact of the semiconductor crisis, that’s forcing car owners, online delivery firms, tradespeople and van fleets to run vehicles longer, due to lengthening new build lead times, as well as increased pricing and supply chain issues for other components. This trend has generated further momentum for Ivor Searle over the past year and we expect demand to increase further, particularly in Europe, which is fast becoming a major growth market for our remanufactured products.”
Remanufacturing is a fundamental part of a circular economy, as it’s a cost-effective alternative to manufacturing brand new products and at the same time saving on raw materials and energy. Typically, every engine produced by Ivor Searle saves around 50kg in core metal, whilst using 85 per cent less energy than manufacturing.
Following the significant slowdown in new car sales due to lack of availability, added to the rising cost of insurance that has reduced the threshold for uneconomical repair, the market for remanufacture has developed as a competitive alternative to OEM replacement parts. Ivor Searle can save garages up to 40 per cent across its expanding line-up of premium remanufactured engines, cylinder heads, gearboxes and turbochargers.
The automotive parts remanufacturing market in Europe is valued at around €10 billion and expected to reach €20 billion by the end of 2024, as diesel vehicles constitute the highest proportion of cars and vans across Europe. According to its report, Automotive Parts Remanufacturing Market: Europe Industry Analysis and Forecast 2016-2024, Persistence Market Research projects that Europe’s vehicle parts remanufacturing market will continue to grow by up to 10 per cent annually. By the end of 2024, the report predicts the number of remanufactured products will surpass 56 million per year.
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