Remanufactured Laptops: The Missing Piece in the IT Puzzle
As 2025 approaches, the IT landscape is poised for a transformative shift. Devices acquired during the lockdown are nearing their end of life, heralding a surge in demand for second-user IT solutions. Channel IT Oxygen recently featured insights from our Group Director of Sustainability and Growth, Steve Haskew, who highlighted this burgeoning opportunity for sustainable IT. “I think 2025 is really going to flush out massive opportunity for sustainable IT,” Haskew asserts. “At Circular Computing, we are primed to meet this demand head-on”. This blog delves deeper into the conversation, examining how remanufacturing not only fills a vital market gap but also distinguishes itself from mere refurbishment, reinforcing our commitment to ethical and sustainable practices.
Understanding Remanufacturing vs. Refurbishing
One of the most common misconceptions in the IT industry is the difference between remanufacturing and refurbishing. Remanufacturing involves rebuilding a product to an “as-new” condition with a warranty comparable to a new product. “To all intents and purposes, what the customer gets [with remanufactured] is a brand-new product,” notes Haskew. On the other hand, refurbished products may show signs of previous use and might not include a warranty.
Key Differentiators
Quality Assurance: Remanufactured products meet “as-new” standards, supported by British Standards Institute (BSI) Kitemark.
Cost Efficiency: Remanufactured laptops typically cost 30-40% less than new ones, offering substantial savings without compromising on quality or performance.
Sustainability: Remanufacturing supports circular economy by reusing components and significantly reducing e-waste. This sustainable approach aligns with our commitment to ethical practices and environmental stewardship.
Comprehensive Testing: Exhaustive testing is the key to our remanufactured laptops. Each device undergoes rigorous evaluations to ensure peak performance.
5+ Hour Remanufacturing: Our comprehensive 5+ hour Circular Remanufacturing Process leaves no stone unturned, rebuilding each laptop meticulously.
360-Point Quality Check: A meticulous 360-point quality check ensures every detail meets our stringent standards, resulting in unrivalled quality and consistency.
Lower RMA Rate: This rigorous approach results in significantly lower Return Merchandise Authorisation (RMA) rates. We are currently running at less than 3%, based on a 12-month rolling average of remanufactured laptops sold with a minimum 12-month warranty.
Peace of Mind: Our dedication to quality gives you confidence in our products, ensuring that what you receive is nothing short of excellence.
To read in detail about the difference between remanufactured and refurbished laptops, explore our blog: Is Remanufactured as Good as New?
Circular Computing’s Unique Proposition
Circular Computing aims to define and expand the remanufactured market segment. Unlike OEMs, which focus on selling new products, Circular Computing offers remanufactured alternatives with a BSI Kitemark certification, ensuring the highest quality. “There are other organisations calling their product ‘remanufactured’, but there’s only one that can say they have the kitemark from the BSI for remanufactured laptops, and that’s Circular Computing,” affirms Haskew.
Achievements Showing the Direction of Travel
Recent Wins: Circular Computing has recently achieved a major victory in the Irish public sector, capturing 12.5% of the PC market through a significant contract worth up to €30M, awarded by Ireland’s Department of Public Expenditure, National Development Plan Delivery and Reform. Facilitated through the Office of Government Procurement, this agreement will see Circular Computing supply remanufactured laptops to the Irish public sector over the next four years. To learn more about this landmark agreement, read our detailed news piece Ireland Public Sector Agreement awarded to Circular Computing in partnership with Green IT.
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Harnessing the Power of Sustainable IT
The focus on sustainable practices has gained traction in both the public and private sectors. Circular Computing has been particularly successful with local authorities and NHS trusts in the UK. The success story in Ireland points to a broader potential across the EU, with a possible market size of €500m. “We help them achieve evidence that they’re achieving their green procurement agenda,” highlights Haskew. To know more about The Hidden Benefits Of Sustainability To The Bottom Line read our blog.
Key Drivers for Adoption
Financial Savings: Organisations can save 30-40% on laptop purchases.
Environmental Impact: Supporting the green agenda is crucial for decision-makers as traditional production and consumption models increasingly harm the environment. The circular economy, which emphasises reducing waste, reusing materials, and recycling, offers a powerful solution. Read in detail how circular economy can help build sustainable businesses in our blog Rethinking Waste: A Circular Economy Approach.
Industry Voices on Remanufacturing
Industry experts like John Gladstone, Sustainability Lead at Softcat, see Circular Computing as setting the standard for remanufactured technology. “Remanufactured is like taking a BMW back to BMW, stripping it down and making it like a brand-new car,” he states. Alex Groves, Head of Sustainability at SCC, emphasises the importance of warranties, “There are definitely customers where having a warranty means something.”
Overcoming Vendor Tensions
There’s an inherent tension between new product sales and the growing demand for sustainable solutions. OEMs face the challenge of maintaining brand reputation while adapting to market shifts. “We’ve taken 12.5% of the public sector market away from the OEMs’ brand-new product,” observes Haskew. Collaborations between remanufacturers and OEMs could pave the way for a more sustainable future.
Navigating Financial Dynamics:
Revenue Models: Partners need to balance immediate revenues with long-term sustainability goals.
Customer Demands: Businesses must adapt to retain customers seeking sustainable options.
The Future of Remanufacturing in IT
The potential for remanufactured products is vast, yet challenges remain. Circular Computing continues to lead the charge with innovative practices and strategic partnerships. “The opportunity is very clear,” asserts Gladstone, pointing to examples such as the French government’s procurement practices. Gladstone added, “Especially if you look at what the French government has done with the requirement to use remanufactured equipment within their procurement practices. We can see that happening in the public sector, and we can see that happening in the private sector as well. Companies aren’t going to reduce their emissions from a procurement aspect unless they actually start using more remanufactured and refurbished goods.”
By adopting remanufactured products, organisations can significantly reduce their carbon footprint and align with global sustainability goals. Circular Computing is at the forefront of this movement, setting the standard with our commitment to quality and sustainability. Our innovative practices and strong partnerships are paving the way for a greener future in both public and private sectors.
Continued advancement in remanufacturing techniques will drive industry growth, while governmental support can accelerate adoption and standardisation. By embracing remanufactured products, we can collectively move towards a more sustainable and responsible future.
Pioneering a Sustainable IT Future
Circular Computing stands at the forefront of a burgeoning remanufactured market, offering a viable alternative to traditional IT purchases. Our commitment to sustainability, backed by certification and industry endorsements, provides a compelling case for organisations looking to make a responsible choice. By bridging the gap between new and refurbished, Circular Computing not only offers value for money but also aligns with a global shift towards sustainable practices. With the right support and continued innovation, the remanufactured market is poised to revolutionise the IT landscape.