Caterpillar Rehabs Diesel Engines and Other Equipment

Caterpillar has begun to remanufacture their used diesel engines, transmissions and other power generation equipment, reports the Daily Herald.

Caterpillar is the world's largest manufacturer of earth-moving equipment and other industrial power equipment such as industrial engines and generators. They are remanufacturing and returning to the market as many as 2 million products from water pumps to military tank engines. The power equipment carries a like-new warranty and sells for half the price of a new product.

Analysts indicate Caterpillar's effors will help them fight rising raw material prices shortages. Scott Burns of Morningstar said,"When you've got that many engines out there to reclaim, if you can do it on a low-cost basis, I think you're going to be at a competitive advantage over the next five years."

The Daily Herald explains remanufacturing engines and engine and generator parts is similar to recycling, but goes futher. Caterpillar takes an engine (for example) apart; cleans, fixes or replaces worn parts and upgrades the technology if possible.