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Thursday, 08 October 2015 22:42

Peters’ bill to encourage use of remanufactured parts signed into law

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U.S. Sen. Gary Peters discusses legislation to increase the use of remanufactured parts in repairing the federal fleet during a stop in March at North American Fuel Systems Remanufacturing in Kentwood U.S. Sen. Gary Peters discusses legislation to increase the use of remanufactured parts in repairing the federal fleet during a stop in March at North American Fuel Systems Remanufacturing in Kentwood MIBIZ FILE PHOTO

New federal legislation signed into law this week could significantly reduce the cost of maintaining U.S. government agencies’ vehicle fleets by requiring those groups to encourage the procurement of remanufactured parts for repairs instead of new components.

Proponents of the Federal Vehicle Repair Cost Savings Act, introduced in February by Sen. Gary Peters, D-Mich., say the new legislation could both spur job growth in the remanufacturing industry as well as help reduce the cost of federal vehicle maintenance for taxpayers.

“On the one hand, you get this validation of the use of remanufactured parts and the government recognition that they are good quality parts,” Tom Lehner, vice president of policy for the Motor & Equipment Manufacturers Association (MEMA). “On the other hand, you’re expanding the remanufacturing market by 588,000 vehicles, so it’s a win win for everyone.”

High-wear parts such as alternators, starters and brake components are the mostly likely to be replaced using remanufactured components, Lehner said.

Currently, the government maintains a fleet of approximately 588,000 vehicles and spends nearly $1 billion in maintenance annually, according to a 2013 study by the Government Accountability Office.

By using more remanufactured parts, the government could cut individual parts costs up to 50 percent for its fleet, according to a previous MiBiz report. Remanufactured components also require approximately 90 percent less energy to produce than new parts.

The remanufacturing industry supports approximately 180,000 jobs throughout the U.S., according to a U.S. International Trade Commission. Production of remanufactured goods rose 15 percent to $43 billion from 2009 to 2011, the latest period for which statistics are available.

“It is clear the leaders of our country recognize the quality, value and sustainability benefits of remanufactured products,” said John Chalifoux, president and COO of the Motor & Equipment Remanufacturers Association, a division of MEMA, in a statement. “This new law will lead to a reduction in government spending, while supporting good jobs in the remanufacturing industry.”

The bill, co-sponsored by Sen. Jim Lankford, R-Okla., was the first piece of legislation Peters introduced after taking office in January.

U.S. Congressman Bill Huizenga, R-Holland, introduced companion legislation into the U.S. House of Representatives.

“I’m proud that the first bill I introduced in the Senate has been signed into law by the President,” Peters said in a statement. “This commonsense, bipartisan law will help reduce wasteful spending and support Michigan’s growing remanufacturing industry.”

Peters touted the bill in a March stop at North American Fuel Systems Remanufacturing LLC (NAFSR) in Kentwood.

At the time, Vice President and General Manager Adam Knobeloch said the bill, if passed into law, would help fuel demand for the heavy-truck engine components it refurbishes.

NAFSR, a joint venture of Daimler AG and Robert Bosch LLC, has expanded since the downturn as demand for remanufactured parts has grown, but the bill could encourage even more business, which could translate into more jobs and economic activity in West Michigan, he said at the time.

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Editor’s Note: This story has been changed from its original version. 

Read 2748 times Last modified on Monday, 12 October 2015 12:40

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