PowerVip has drawn up a list of predictions for the remanufacturing industry over the coming year, based on the evolvement of economic variables, the views of suppliers and customers and the company’s own perception; with the company claiming that after enduring a number of difficult transitions, those in the remanufacturing business "will become stronger".
The revenues downfall of OEMs due to the outbreak of new technologies causing a decrease in printing demand will have a “proportional and direct influence” on the remanufacturing industry, predicts PowerVip, with the economic crisis also expected to speed up the reduction in traditional printing demand due to more unemployment and "less general activity".
However, the company suggests that even if the economic crisis had not emerged, a decline in the remanufacturing industry would have been likely as part of a natural process following its geometric growth during the 2000 decade; and predicts that "between 2% and 5% of the remanufacturing enterprises will disappear".
Also predicted by the company is that OEMs will continue to undertake legal actions during the business drop process, with their objectives changing according to their financial position: "In the good times, their purpose was selling and acquiring more market share. In the crisis times, their objective is to cushion the falls".
The importation of clones by recyclers is estimated to continue in order to gain better profits "or just for survival", despite increasing OEM legal action, causing more industry distortion. PowerVip also says that cartridge quality problems will continue, although to a lesser degree than the past decade.
PowerVip concludes that as a result of these issues, investment in the remanufacturing industry is likely to be discouraged, and many businesses will merge or even close, particularly as bank loans are unable to be paid. However, should businesses learn to deal with the issues, PowerVip says that they should emerge from the year in a stronger position.
Visit our web store for OEM or remanufactured printer supplies.
Source: PowerVip predicts trends for remanufacturing industry in 2013
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