Opinion: Does the US need legislation to protect remanufacturing?
October 7, 2024
US remanufacturing faces threats from cheap imports and OEM restrictions without legislative support.
The US remanufacturing industry, once valued at over $5 billion (€4.7 billion), is at risk of collapse as cheap, generic cartridges flood the market, largely from Asia and undercut domestic remanufacturers, making it difficult for them to compete both in terms of price and quality. These products often pose environmental risks, undermining efforts to promote sustainability in the sector.
The issue is further compounded by OEMs like HP, which have implemented firmware updates specifically designed to block third-party remanufactured cartridges. This has restricted market access for independent remanufacturers, further threatening the future of the industry.
In Europe, the remanufacturing industry is waiting for the implementation of strict new Ecodesign legislation aimed at reducing waste and promoting sustainable practices within the office imaging sector. This regulation will likely enforce tougher standards on remanufactured products, ensuring that they meet stringent environmental accountability standards.
The proposed legislation includes mandates on product durability, reparability, and access to critical components, which would foster a more circular economy. Notably, the regulation prohibits firmware updates that would limit the functionality of remanufactured cartridges, ensuring that they can compete on an even playing field with OEM consumables?. This includes requirements for cartridge design that allow for easy remanufacturing, a move that will likely increase the lifespan of both printers and cartridges.
In the EMEA region, HP is planning its “SecuReuse” program that is timed to coincide with this legislation that is set to roll out by 2026, this initiative allows remanufactured cartridges to function in HP’s printers ecosystem. While this could be seen as a step toward supporting remanufacturers, some industry insiders remain sceptical, viewing it as a strategy for HP to maintain control over the market.
The key question is whether the US should adopt similar regulatory measures to protect its remanufacturing industry. Without legislation, US remanufacturers face mounting challenges, and the market risks being overwhelmed by low-cost imports and OEM dominance. If sustainability is the goal, legislative support may be the only way forward.
Categories : Around the Industry
Tags : Europe Legislation Opinion Remanufacturing USA
