Jeff Reinke, Editorial Director, Advantage Business Media Mfg. Group
In this segment, our editors square off on timely issues relating to industrial maintenance and plant operation. The editorial staff would like to stress that we are not intending to specifically endorse any one viewpoint, however our intent is only to encourage dialogue by showing a point-counter-point on contentious issues
When it comes to tackling the strengths and opportunities that can be found in purchasing used capital equipment, it’s not really a matter of comparing it to a newer option, but investigating the impacts, both immediate and long-term, from going this route. Used equipment not only offers a more attractive price point, but allows manufacturers, especially those feeling the impacts of current economic strains, to stretch their buying capabilities.
There are also a couple of trends in our marketplace that can make going the used route an excellent option:
- Customization. As more and more consumers/customers require products tailored to their needs, the addition of equipment that specializes in fulfilling these requests can set you apart. However, the investment in new equipment can gash the profitability of adding these new capabilities, whereas a used option fulfills the need without compromising cash flow.
- Lean manufacturing. As more and more production facilities scrutinize their floor space, excess equipment is often eliminated. This offers those in need of these machines a great opportunity to acquire much needed resources at a great price.
- Product quality. While the adage about things “not being built like they used to” isn’t quite the point I’m trying to make, the truth is that a great deal of older equipment was made extremely well, and in many cases over-designed in terms of durability and operating tolerances. These units are built to last, especially when it comes to more robust equipment like machining centers, general purpose conveyors and fork trucks.
Although there are many benefits to going the used route for new equipment, they won’t be realized without the proper research and due diligence associated with any purchase. The primary benefit being that instead of looking at one large purchase, your facility can investigate the prospects of implementing multiples pieces of equipment that can help grow your business and improve operations.