For decades, one of the most familiar assumptions in business has been that growth depends on selling more products. Companies manufacture goods, customers purchase them, and revenue is generated when ownership changes hands. Once a product becomes outdated, damaged or no longer desirable, a replacement creates another opportunity for a sale. But what happens when consumers begin keeping products for longer, repairing what they already own and questioning the need for constant replacement?
The answer is more complicated than a simple decline in demand. Longer product lifespans can challenge traditional sales models, but they can also create opportunities in maintenance, refurbishment, resale, spare parts and subscription-based services. Instead of generating value only when a new product is sold, businesses may be able to earn revenue throughout its useful life and, in some cases, through multiple ownership cycles.
This emerging repair economy is changing how companies think about growth, profitability and customer relationships. From manufacturers recovering valuable components to retailers entering second-hand markets, product longevity is becoming part of a broader economic discussion. The central question is no longer whether repair and reuse can coexist with commerce, but under which conditions businesses can make them financially sustainable.
Why Longer Product Lifespans Challenge Traditional Business Models
The conventional business model for many consumer goods relies on a continuous flow of new purchases. Manufacturers invest in product development, production and distribution, while retailers generate revenue through sales volumes and margins.
Replacement demand plays an important role in maintaining that cycle.
When a customer purchases a new smartphone, household appliance or piece of furniture to replace an older item, the transaction creates revenue across several businesses. Manufacturers, distributors, retailers and logistics providers may all participate in the sale.
Extending the lifespan of the original product can postpone that replacement and potentially reduce the frequency of future purchases. For businesses dependent on high sales volumes, this creates an apparent conflict between product durability and revenue growth.
Yet the relationship is not necessarily a zero-sum equation.
A company that earns money exclusively from selling new products may view longer replacement cycles as a commercial risk. Another company that also sells maintenance services, replacement components, refurbished products or extended support may see a longer ownership period as an opportunity to generate additional value.
The distinction lies in how the business model is structured.
The Ellen MacArthur Foundation, in its 2025 analysis of circular business models, describes how companies can generate revenue through activities that keep products and materials in use, including repair, rental, resale and refurbishment.
These approaches differ from the conventional model of producing and selling a succession of new goods. They seek to recover more economic value from products that have already been manufactured.
However, the potential is not unlimited.
The European Environment Agency’s 2026 briefing on scaling circular business models stresses that such approaches remain relatively niche in many sectors, despite growing regulatory support and commercial interest.
The economic transition is therefore far from complete. Businesses must still determine whether extending product lifespans can produce sufficient revenue and margins to justify the additional complexity.
From One-Time Sales to Revenue Throughout the Product Lifecycle
A traditional product sale concentrates much of a company’s revenue at the point of purchase. After-sales activities may exist, but they are often treated as secondary services or costs associated with warranty obligations.
The repair economy encourages a different approach.
Instead of viewing the initial sale as the main economic event, businesses can examine the entire period during which a product remains useful.
That period may include maintenance, component replacement, technical upgrades, professional servicing, resale and eventual recovery of valuable materials.
Each stage creates a potential commercial interaction.
For example, a company selling industrial equipment might generate revenue from the original machine and subsequently from maintenance contracts, spare parts, upgrades and remanufactured components. An electronics company might sell a device and later provide paid battery replacement, professional repairs or certified refurbished units.
In these circumstances, extending the product’s usable life can support a longer commercial relationship.
This does not mean every additional service will be profitable. Maintenance involves labour, inventory, logistics and customer support. Warranty obligations may also create expenses without additional service revenue.
What changes is the business question.
Rather than asking exclusively how frequently customers can be persuaded to replace their products, companies begin examining how much value can be created during the ownership period.
The result may be a shift from transaction-based revenue toward a combination of product sales and ongoing services.
For businesses able to manage those services efficiently, this can create additional revenue streams and reduce dependence on frequent replacement purchases.
Repair and Maintenance as Recurring Revenue Opportunities
Repair services are often associated with unexpected product failures, but maintenance can also be organised as a predictable commercial offering.
This distinction is important.
An individual repair generates revenue when a problem occurs. A maintenance contract, by contrast, may establish recurring payments for inspections, servicing, preventive work and ongoing technical support.
These arrangements are already familiar in sectors such as industrial machinery, commercial equipment and building infrastructure.
For customers, the attraction is often greater predictability. Instead of facing uncertain expenses whenever equipment breaks down, they can agree to a service arrangement with defined responsibilities and costs.
For providers, recurring contracts can support revenue visibility and more predictable demand for technicians, replacement components and service capacity.
However, recurring revenue should not be confused with guaranteed profitability.
A poorly priced maintenance contract can become expensive if equipment fails more frequently than expected. Providers may also face rising labour costs, shortages of spare parts or obligations that extend beyond their original cost assumptions.
Successful maintenance businesses therefore depend on understanding the relationship between service pricing, equipment reliability and expected operating expenses.
The commercial opportunity becomes stronger when preventive maintenance reduces expensive failures and allows technicians to work more efficiently.
Businesses that collect reliable information about product performance may also be better positioned to forecast demand for repairs and replacement components.
Over time, these capabilities can transform after-sales support from a reactive function into a more structured commercial activity.
Refurbishment and Resale: Creating Value From Products Already Sold
Another important dimension of the repair economy involves products that have reached the end of their first ownership cycle but still retain commercial value.
Refurbishment allows businesses to inspect, restore and prepare used products for resale. Depending on the product, the process may involve replacing damaged components, cleaning, testing, updating software or addressing cosmetic defects.
Resale can then introduce those products to customers who may not have purchased them at their original retail prices.
The model is particularly relevant to electronics, furniture, fashion and other categories where used products can retain practical value.
From a business perspective, refurbishment offers an opportunity to generate revenue from existing goods rather than relying exclusively on newly manufactured inventory.
But its profitability depends on several variables.
The company must acquire products at a suitable cost, evaluate their condition, carry out necessary repairs and ensure that the final selling price covers processing, logistics, warranties and marketplace expenses.
A refurbished item purchased too expensively or requiring extensive repairs can quickly become unprofitable.
Businesses must also account for inconsistent product quality. Unlike newly manufactured inventory, used items may arrive with different defects, missing components or uncertain histories.
This makes accurate inspection and grading essential.
The commercial value of a returned or used product is not simply its expected selling price. It is the value remaining after the costs of preparing it for another customer have been considered.
That distinction explains why refurbishment can become a successful business model in some categories while remaining difficult to scale in others.
IKEA’s Second-Hand Marketplace Shows a New Direction for Retail
The furniture sector offers a particularly relevant example of how businesses can participate in the resale of products they originally sold.
In October 2026, IKEA expanded its second-hand marketplace to the United Kingdom and Ireland, allowing customers to buy and sell eligible pre-owned IKEA products directly.
The initiative complements the company’s existing Buyback & Resell services, which allow customers to return certain used items in exchange for store credit.
According to an October 7, 2026 announcement from Ingka Group, the marketplace had recorded approximately 15 million visits and generated 95,700 listings across its first six markets up to August 31, 2026.
The company also reported that 25.5% of marketplace users were new or reactivated IKEA Family members.
These figures are company-reported platform activity metrics, not evidence of profitability. Nevertheless, they reveal an interesting commercial possibility.
A retailer can continue interacting with customers after the original transaction by helping them find new owners for products they no longer need.
The resale platform may offer opportunities to strengthen customer relationships, attract additional users and provide alternative ways to purchase the brand’s products.
Importantly, a marketplace does not necessarily require the retailer to acquire, refurbish and store every item being resold.
In a peer-to-peer model, customers can transact directly, while the platform facilitates product discovery, information and aspects of the transaction.
This can reduce some inventory-related risks, although platform development, payment systems, customer support and trust mechanisms still involve costs.
IKEA’s approach illustrates how retailers can explore commercial roles beyond the initial sale.
Whether these activities ultimately become significant profit contributors will depend on adoption, operating costs and the economics of the services offered.
The wider lesson is that a product’s second owner may also represent a commercial relationship for the company behind the original sale.
Caterpillar: How Remanufacturing Changes the Economics of Industrial Parts
The industrial equipment sector demonstrates a more established approach to recovering value from used products.
Caterpillar’s Cat Reman programme involves collecting used machinery components and restoring suitable parts to performance specifications comparable with new components.
The model is based on recovering used parts, commonly referred to as cores, from customers.
Through an exchange system, customers purchase remanufactured components and may receive a credit when they return eligible used parts.
According to Caterpillar’s explanation of its remanufacturing process, returned components are inspected, disassembled, cleaned and processed before being reassembled and tested against the company’s standards.
Unlike a relatively simple repair, industrial remanufacturing can involve extensive restoration and the recovery of materials and components for another production cycle.
From an economic perspective, the value lies partly in the materials and manufacturing effort already embedded in the original component.
If a company can recover usable elements at a lower cost than producing equivalent new parts, remanufacturing can create a commercially attractive alternative.
Caterpillar states that its remanufactured products are offered at prices below comparable new parts, with the economics supported by recovering suitable cores.
The system also creates an incentive for customers to return components rather than discard them.
This makes reverse logistics an integral part of the business model. The flow of used components back into the company is not merely a waste-management activity; it helps secure the inputs needed to produce future remanufactured products.
The Caterpillar example is especially relevant because it shows how extending the life of components can be integrated into an established industrial business rather than treated as a separate sustainability initiative.
It also illustrates the importance of product design, technical expertise and logistics infrastructure. Remanufacturing requires reliable access to recoverable components, consistent quality standards and sufficient demand for the resulting products.
Without those conditions, the model becomes significantly more difficult to operate profitably.
Product-as-a-Service: When Customers Pay for Performance Instead of Ownership
Some businesses are going further than offering repairs or refurbished products.
They are reconsidering whether customers need to own the equipment in the first place.
Product-as-a-Service models allow customers to pay for access, availability or performance rather than purchasing the underlying product outright.
Depending on the contract, the provider may retain ownership and responsibility for maintenance, repairs and eventual replacement.
This changes the economic incentives.
When a company remains responsible for the equipment, frequent breakdowns can increase its own costs. Durable products and efficient maintenance can become directly connected to profitability.
A relevant example is Signify’s Light as a Service offering, which enables business customers to obtain lighting services without necessarily owning or maintaining the lighting equipment.
Under this type of arrangement, the provider can be responsible for aspects of installation, operation, maintenance and equipment management throughout the contract.
For customers, the model can reduce the need for a large upfront purchase and help make service expenses more predictable.
For the provider, recurring payments can support a longer relationship with the customer.
However, the financial structure also introduces risks.
The provider may need to finance equipment before collecting sufficient revenue from the service contract. It must estimate maintenance requirements, manage asset depreciation and remain capable of meeting contractual performance expectations.
The economics depend on financing costs, contract duration, equipment reliability and the ability to reuse or recover assets when agreements end.
These models can be particularly attractive in business-to-business markets, where longer contracts and predictable utilisation may help providers recover their investments.
They are not automatically suitable for every consumer product.
For companies considering Product-as-a-Service, the central challenge is to ensure that recurring revenue exceeds the full cost of acquiring, financing, maintaining and eventually recovering the equipment.
The Hidden Costs of the Repair Economy
The financial appeal of repair, refurbishment and resale can be misleading when companies focus on additional revenue without examining the costs involved.
Keeping products in circulation requires infrastructure.
Returned goods must be collected, transported, inspected, sorted and sometimes stored before they can be repaired or resold. Spare parts must remain available, technicians need training and customers expect reliable information about the condition of refurbished products.
These activities introduce operational costs that may be less visible than the manufacturing and distribution costs of new products.
The European Environment Agency’s analysis of circular business models identifies the labour-intensive nature of repair, refurbishment, remanufacturing and reverse logistics as a significant challenge to scaling.
Traditional manufacturing can often reduce unit costs by producing large volumes of standardised products. Repair businesses face a different situation because individual products may require different levels of attention.
One damaged laptop may need a straightforward battery replacement. Another may require extensive diagnostics, multiple components and several hours of labour.
Even when the products are identical models, the cost of restoring them may vary considerably.
This unpredictability complicates pricing and capacity planning.
Inventory can also become a source of financial pressure. Businesses may need to maintain stocks of replacement parts for products that are no longer being manufactured, creating uncertainty about future demand.
If too many parts remain unsold, the company ties up working capital. If too few are available, repairs become slower and customers may abandon the service.
The economic success of the repair economy therefore depends not only on extending product lifespans but also on managing the cost of doing so.
Why Reverse Logistics Is Becoming a Strategic Capability
Traditional distribution systems are designed primarily to move products from manufacturers and warehouses toward customers.
Repair and refurbishment require products, components and information to move in the opposite direction.
This process, known as reverse logistics, becomes particularly important when businesses rely on recovering used goods.
A company operating a refurbishment programme must determine where products should be collected, how their condition will be assessed and whether they should be repaired, dismantled for parts or removed from circulation.
The speed and accuracy of these decisions can influence profitability.
A returned product that remains in a warehouse for an extended period may lose resale value. Unnecessary transportation can increase costs, while poor inspection procedures can lead to expensive repairs on products that are no longer economically viable.
Efficient reverse logistics therefore requires more than transportation capacity.
It depends on data, operational coordination, technical evaluation and clear decisions about product recovery.
Businesses may also benefit from standardised product designs because common components and repair procedures make restoration more predictable.
Digital systems can help track returned inventory, monitor the availability of spare parts and identify the most economically appropriate recovery route.
However, investment in technology must be justified by sufficient volume and measurable operational improvements.
For smaller companies, partnerships with independent repair networks or specialised logistics providers may be more practical than developing all these capabilities internally.
The important distinction is that reverse logistics is no longer necessarily a cost associated only with returns and defective products.
When a business model depends on refurbishment and remanufacturing, recovering used products can become part of the company’s supply strategy.
Can Repair and Resale Cannibalise New Product Sales?
One of the most important strategic questions is whether revenue generated from repair and resale comes at the expense of new product sales.
A customer purchasing a refurbished device might otherwise have purchased a new one. A customer choosing to repair an appliance may postpone replacement for several years.
This creates the possibility of sales cannibalisation.
However, not every refurbished purchase represents a lost sale of a new product.
Some consumers enter the second-hand market because they cannot afford new products at current prices. Others may purchase a different brand or choose not to buy anything if a refurbished alternative is unavailable.
In these situations, resale can reach customers who were not necessarily part of the company’s primary market for new goods.
The commercial outcome depends on customer behaviour and market segmentation.
Businesses need to understand whether secondary-market products attract additional customers, retain existing customers or substitute for more profitable purchases.
The same logic applies to repair services.
A successful repair may reduce immediate replacement demand but preserve the relationship between the customer and the manufacturer. Whether that relationship generates future revenue depends on pricing, service quality and subsequent purchasing behaviour.
This creates a more complex measurement problem than simply comparing new-product sales before and after launching a repair programme.
Companies must examine the combined profitability of new sales, services and secondary-market transactions.
A repair initiative that generates positive revenue but substantially reduces higher-margin new sales may not improve overall profitability. Conversely, a programme with modest direct margins may still be worthwhile if it attracts valuable new customers or prevents them from moving to competitors.
The objective is not to eliminate cannibalisation at any cost.
It is to understand whether the business earns more sustainable economic value across the customer’s relationship with the company.
Why Product Longevity Can Affect Customer Acquisition and Retention
The repair economy also changes the relationship between customer acquisition and long-term value.
In a traditional sales model, a company may invest heavily in advertising and distribution to acquire a customer, generating most of its revenue at the point of purchase.
When the relationship includes repair services, replacement components or future resale interactions, the business may have additional opportunities to generate revenue without acquiring an entirely new customer.
This can influence customer lifetime value, although the financial benefits depend on whether subsequent interactions generate positive contribution margins.
A longer relationship does not automatically mean a more profitable one.
An owner who requires expensive warranty repairs may create significant costs without producing additional revenue. On the other hand, a customer who purchases reasonably priced maintenance services over several years may contribute positively to the business.
This distinction is essential when evaluating repair initiatives.
The value of customer retention must be assessed alongside the costs required to maintain the relationship.
There is also a difference between the commercial economics of repair and its role in brand perception.
A companion analysis prepared for Targeted.gr, titled Beyond the Sale: Why Repairability Is Becoming a Brand Trust Signal, examines how repairability and after-sales support can influence customer confidence and brand positioning.
For business strategy, the next question is how those relationships translate into measurable financial results.
A repair programme may improve brand perception, but it still needs appropriate pricing, operating efficiency and financial discipline if it is expected to function as a sustainable source of revenue.
Why the Economics of Repair Depend on the Industry
The financial viability of repair and refurbishment differs substantially between product categories.
Industrial machinery, for example, may contain expensive components with considerable recoverable value. Professional maintenance can also reduce costly downtime, making customers more willing to pay for reliable service.
Consumer electronics present different conditions. Devices may retain resale value, but their restoration can involve expensive components, software limitations and rapid technological change.
Furniture provides another model. Certain durable products can be repaired or resold multiple times, but transportation and storage costs may be high relative to their market value.
Fashion introduces its own challenges. Cleaning, sorting, grading and repairing individual garments can require significant labour, while the resale price of inexpensive clothing may not cover those costs.
A May 2026 report from the Ellen MacArthur Foundation examined the economic barriers facing fashion resale and repair businesses.
The report highlighted how labour-intensive processes, taxation and the relative economics of newly produced goods can make circular business models difficult to scale.
It also explored how changes to taxation and extended producer responsibility policies could improve the commercial viability of these activities.
The findings are particularly relevant because they challenge the assumption that greater consumer interest will automatically make every repair business profitable.
Demand is only one part of the equation.
Companies also need a cost structure that allows them to deliver services at prices customers are willing to pay.
A strategy that works for industrial components may not be suitable for low-cost clothing. Similarly, a peer-to-peer marketplace may require a different financial structure from a business that purchases, repairs and resells inventory itself.
Product longevity is therefore not a universal business model. It is a characteristic around which different business models can be developed.
European Right-to-Repair Rules Are Changing Market Conditions
Public policy is becoming another important factor in the economics of product longevity.
In the European Union, Directive (EU) 2024/1799 on common rules promoting the repair of goods establishes a framework intended to make repair more accessible for certain product categories.
The directive was adopted in June 2024, with Member States required to transpose its provisions into national law and apply them from July 31, 2026.
Its obligations apply within a defined legal scope rather than creating a universal requirement to repair every product.
Among other provisions, the framework addresses manufacturers’ repair obligations and measures intended to improve consumer access to repair services.
The legislation also provides for a European online repair platform, with the common online interface scheduled to be developed by July 31, 2027.
National implementation remains important, particularly where transposition has been delayed.
From a business perspective, these developments can influence competition, service availability and future operating requirements.
Manufacturers may need to consider how product design, access to parts and repair-related information affect their responsibilities and costs.
Independent repair businesses may also benefit from a regulatory environment that seeks to improve access to repair opportunities.
However, legal changes do not automatically guarantee profitable business models.
A company may face new obligations without immediately generating additional service revenue. Repair providers may still struggle with labour expenses, customer acquisition and operational capacity.
The long-term economic consequences will depend on how regulations are implemented and how businesses respond.
The strategic importance lies in recognising that repairability is becoming a more formal consideration within product policy, rather than remaining solely a voluntary commercial decision.
What Businesses Need to Measure Before Investing in Repair
A repair or refurbishment programme should be evaluated with the same financial discipline applied to any other investment.
From a business strategy perspective, the central question is not simply whether repairing products is desirable, but whether the services supporting that repair can become financially sustainable. For Market Insiders, this means examining the economics behind product longevity: operating margins, recovery costs, recurring revenue opportunities and the potential impact on new-product sales. Ultimately, a successful repair economy depends on businesses finding ways to extend product lifespans while maintaining profitability.
The first consideration is unit economics.
Companies need to understand the revenue generated by each service or recovered product and the direct costs associated with delivering it.
For repairs, these costs may include labour, components, diagnostics, transportation and warranty provisions. For refurbishment, acquisition costs, inspection, restoration, storage and resale expenses become especially relevant.
The next consideration is recovery efficiency.
A company collecting used products needs to determine what proportion can be restored economically, how long restoration takes and how much inventory loses value before being sold.
Customer behaviour also matters.
Businesses should assess whether repair services attract new customers, retain existing ones or replace sales that would otherwise have generated higher margins.
Cash flow is equally important. Refurbishment businesses may need to purchase inventory and pay for restoration before receiving any resale revenue.
Product-as-a-Service providers can face a similar challenge when they finance equipment upfront and recover their investment through payments collected over several years.
For this reason, businesses should evaluate profitability, cash requirements and operational risk together.
A programme that appears attractive based on gross revenue may deliver disappointing results once financing, inventory, service failures and administrative costs are included.
Pilot projects can help establish whether the underlying assumptions are realistic before substantial capital is committed.
The central objective should be to identify where extending product life creates measurable economic value, rather than assuming every circular activity will eventually become profitable through scale alone.
Product Longevity Does Not Eliminate the Consumer’s Repair Decision
Even when manufacturers and retailers develop more sophisticated repair services, customers must still decide whether fixing an existing product is worthwhile.
The availability of professional assistance does not automatically make repair economically sensible.
Consumers may need to compare repair costs with replacement prices, consider safety and evaluate whether a product is likely to remain functional for a reasonable period after restoration.
Electronic devices present additional complications because software support, battery condition and component availability can influence the outcome.
These practical decisions will be examined in a forthcoming English-language guide from Techrow.gr, titled Repair or Replace? How to Decide When Your Tech Is Worth Fixing.
For businesses, the important economic connection is straightforward.
Repair services become more attractive when customers believe the price, reliability and expected results justify the investment.
If repairs are too expensive, inconvenient or uncertain, consumer demand may remain limited regardless of the company’s broader strategy.
Developing viable repair services therefore requires businesses to understand not only their own costs but also the customer’s alternative options.
The Cultural Shift Behind the Commercial Opportunity
Business models do not develop independently of changes in consumer behaviour.
A wider conversation about consumption is encouraging some people to reconsider how quickly they replace their possessions and what makes an object worth keeping.
As Athens Pulse explores in its feature The New Appeal of Keeping Things: Why Repair Culture Is Making a Comeback, repairing an object can involve more than financial considerations. Emotional attachment, practical independence and the desire to preserve familiar possessions can also influence the decision.
These motivations matter to businesses because they help explain why demand for repair and longevity-related services may extend beyond strictly price-driven decisions.
Customers who value durability may be interested in maintenance services even when replacement remains affordable. Others may seek refurbished goods because they offer access to products at a lower price.
However, businesses should distinguish between consumer interest and demonstrated willingness to pay.
A favourable attitude toward repair does not necessarily mean customers will accept high repair costs or lengthy service delays.
Commercial strategies need to translate changing preferences into services that deliver practical value at sustainable prices.
This is where cultural interest and business economics meet: the consumer must have a reason to choose repair, while the provider must have a financially viable way to deliver it.
Can Businesses Grow Without Constantly Selling More New Products?
The repair economy raises a difficult but increasingly relevant question: can businesses continue growing when their products are designed to last longer?
The answer depends on how growth is defined and which sources of revenue a company develops.
For businesses reliant exclusively on frequent replacement purchases, extending product lifespans can create pressure on sales volumes.
For companies that successfully introduce maintenance, refurbishment, remanufacturing or service-based contracts, longer product lifespans may support alternative revenue streams.
The strongest opportunities are likely to emerge where customer demand, recoverable product value and operating efficiency align.
A well-designed industrial component may retain significant value after its original use. A durable product may support profitable maintenance services. A retailer may create additional commercial interactions by facilitating second-hand transactions.
Yet these models require careful execution.
Repair and refurbishment can be labour-intensive, reverse logistics can become expensive and customers may remain reluctant to pay for services when inexpensive replacements are available.
The future of the repair economy should therefore not be understood as the inevitable disappearance of traditional product sales.
It is better described as an expansion of the ways businesses can generate value.
Companies may continue manufacturing and selling new products while also developing services that extend the usefulness of existing ones.
The strategic opportunity lies in understanding how these activities can complement one another without undermining overall profitability.
Ultimately, the most important change may be in the meaning of commercial growth itself.
A business may no longer need to create all its value by selling the next new product. In the right market, it may also create value by helping customers keep the products they already have.
Frequently Asked Questions About the Repair Economy
What is the repair economy?
The repair economy refers to economic activities and business models that generate value by maintaining, repairing, refurbishing, remanufacturing and extending the useful lives of products. It includes independent repair services, manufacturer maintenance programmes, refurbished product markets and businesses built around continued product use.
How can businesses make money from longer-lasting products?
Businesses can generate revenue through professional repairs, spare parts, preventive maintenance contracts, upgrades, refurbishment, resale and service-based agreements. Profitability depends on pricing, customer demand, operating costs and the ability to deliver services efficiently.
What is the difference between repair, refurbishment and remanufacturing?
Repair involves restoring a faulty product or component to working condition. Refurbishment generally includes inspecting, restoring and preparing a used product for further use or resale. Remanufacturing involves a more comprehensive industrial process in which used components are restored to defined performance specifications, often comparable with those of new products.
What is Product-as-a-Service?
Product-as-a-Service is a business model in which customers pay for access to or performance from a product rather than necessarily purchasing the equipment outright. The provider may retain responsibility for ownership, maintenance and servicing. Examples include equipment leasing and lighting services where customers pay for the service delivered.
Can repair and refurbishment reduce sales of new products?
Yes. Repairs and refurbished products can substitute for new purchases, potentially reducing replacement sales. However, they may also attract different customer segments and create additional revenue. Businesses need to assess their overall profitability rather than assuming every secondary-market transaction represents a lost new-product sale.
Why is it difficult to make repair businesses profitable?
Repair businesses can face high labour costs, uncertain product conditions, expensive spare parts, transportation expenses and limited opportunities to standardise work. Refurbishment businesses may also need substantial working capital to acquire and restore inventory before selling it.
How does the EU Right to Repair Directive affect businesses?
Directive (EU) 2024/1799 introduces repair-related obligations for certain product categories and measures intended to improve access to repair services. Depending on their activities and the applicable national rules, manufacturers and repair providers may need to adapt their operations, service information or support arrangements.
Is the repair economy part of the circular economy?
Yes. The repair economy is an important component of the broader circular economy, which seeks to keep products and materials in productive use for longer. Repair, maintenance, reuse, refurbishment and remanufacturing can help retain economic value before products or materials reach the recycling stage.