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Article Written By: Clayton Arnold
The commercial industry in Georgia is expanding in many directions. As a result, Georgia metalworking is experiencing a huge uptick in its growth patterns. From commercial real estate to industrial manufacturing and building projects, Georgia is a state that is on the move.
The expanding rate of growth in the Georgia metalworking industry is just as impressive. Not only are industrial and commercial companies in the state profiting off of the proliferation of commercial building products, but other companies are finding their way into Georgia with new headquarters and labor forces. The result is a high growth rate in the metalworking industry that has not been seen before in the southern United States outside of the usual suspect areas of Florida (Miami) and Texas (Dallas, San Antonio).
Month over month foreclosures in the state are down by 6%. All else being equal, this is an excellent sign for industrial and commercial enterprises including the metalworking industry. Looking at all of the other stats including total home sales, the median sales price of non-distressed homes, median sales prices of foreclosure homes, and the number of properties in some stage of foreclosure or default, all else was actually equal. There was no outsized trauma or overbearing success in the market that could not have been predicted from trends in the previous months and the analytics produced by trusted professionals who make a living watching the marketplace.
With the household median income standing at $49,347 and an unemployment rate of 4.5%, Georgia is a healthy overall marketplace. The percentage of vacant homes stands at 13.73% based upon data from ATTOM Data Solutions. All of this is incredibly good news for commercial investors, who continue to find their way into the state on the back of these confident reports.
Companies like Check-Mate Industries are finding plenty of opportunities in Georgia that are expanding the metalworking industry in the state. The case study of Check-Mate Industries is becoming more common, with this Long Island metalworking staple looking to bring $16 million into Thomasville, Georgia. The expansion will create at least 230 jobs. It will also bring a wide variety of opportunities into the state connected to the cosmetics, medical devices, aerospace, firearms, and automotive sectors.
Many companies like this one are expanding into Georgia to meet growing demand from southern B2B consumers. Georgia is becoming well known for its manufacturing environment. There is also a great deal of emphasis in the state being placed on workforce training in industries involving metalwork, which is creating a great deal of buzz around the industry. The combination of logistics and labor is not one to be easily overlooked.
Check-Mate Industries is currently looking for die makers, C&C machinists and supportive roles in management and administration. This is part of the exponential growth in metalworking – the new labor force does not necessarily have to be metalworking professional. There are many ancillary industries that are finding new legs in support of metalworking, including administration, operations, management, IT and process development.
When industries like metalworking expand into places like Georgia, it is usually a long-term investment. Cities like Thomasville are up-and-coming rather than simply attempting to hold onto their current status. First-tier cities like Los Angeles, New York, and Chicago need almost trillion dollars investment from companies such as Amazon in order to create any sort of expansion. Smaller rural and pseudo-manufacturing second-tier towns are the emerging markets in the room with plenty of space to expand in the next 5 to 10 years.
Many industrial and commercial companies with ties to metalworking are finding their way into Georgia through mergers and acquisitions. The M&A industry is led by case studies that include companies like the Injevity Corporation. In March of 2018, Injevity acquired the pine chemicals business that was formerly owned by Georgia Pacifica for a total of $310 million. This robust chemicals business was involved in manufacturing and selling inks, packaging, rubber processing, mining, oilfield, adhesives, paints, cleaners, tall oil rosin, esters for adhesives and pine based tall oil fatty acids.
With metalworking as part of its core aspects, this business was expected to grow at the forecasted CAGR market rate between 2018 in 2023. The sale of the business to Ingevity has caused some experts to believe that this individual business will rise even further than the predicted CAGR, with many other businesses in the industry to follow if they maintain the same pattern of profitable mergers and acquisitions.
Metalworking specifically has many derivative markets that can add to its ancillary profits. The potential in these derivative markets was a large part of the reason that Georgia Pacific was able to easily sell off its chemicals business with the metalworking component neatly included. A few of the derivative market dynamics that help with the deal mentioned here included a lack of awareness of the continuity between industries in emerging markets, the growing utility of resin additives in many commercial applications, growing demand from oilfield chemicals and rising demand coming from the automobile industry as well.
The construction industry is growing in the wake of the 2008 housing crisis recovery. 2017 saw the global market for construction equipment grow to over $192 billion. Even six years from the debacle, North America was the third largest market for construction equipment in the world. The continent made up just over 21% of all global construction equipment industry revenues. Caterpillar, based out of Illinois, was sitting atop the market as the largest construction machinery manufacturer on the planet.
In 2015, engine and machine manufacturers who were creating off-highway trucks, skid steer loaders, and wheel excavators brought down around $47 billion around the world. Major construction led to the proliferation of aerial work platforms, crawler dozers, wheel loaders, and crawler excavators. This market continues to grow with the rising tide of new starts in second-tier cities around the United States. This trend does not seem to be slowing down anytime soon, so you can expect plenty of metalworking to come from these perspectives as well as the added work that always goes along with new housing starts. These statistics are difficult to pin down until they are analyzed after the fact, but all expert opinions are pointing to large numbers of construction machines being sold around the North American continent.
There will certainly be many these machines sold in the southern United States. Georgia continues to be one of the largest drivers of new construction in the region. With this in mind, we can expect Georgia to continue leading the charge into the future as it expands international business operations in many industries that will require additional office space for new permanent companies and transient workers.
2017 saw 809,000 construction machines sold around the world. 186,000 of these were deployed in North America. Exact statistics for the southern region of the United States and the state of Georgia are not available, but there’s plenty of proof to showcase that Georgia was a central hub for much of this new activity and that the metalworking industry played a huge role in bringing much of this business to the state.
It is also a good sign when machines that are meant specifically for metalworking are selling. From the years 2013 to 2018, the industrial machinery and equipment wholesaling industry has reached sales of $244 billion. The number of businesses that are in the industry has experienced no decline over this time (with the total number of businesses reaching 30,611), with employees placing their livelihoods in the industry growing by 1.6%. The total number of new workers in the industry hit 398,269 total people in the five-year span that was studied.
Whenever companies are hiring more physical labor, you can be sure that they are doing quite well. In an age of AI and robotics, companies that need more manpower are experiencing a large degree of scale and exponential growth.
Not even the short dip in commodity prices could reduce the demand for these products in a substantial way. Even with the oil and gas industries experiencing limited growth over the time period, metalworking continues to be a growth industry. This is even though the industrial machinery and equipment wholesaling industry in the United States still has no companies that are considered to own a major market share.
In an industry that contains oil well equipment, pipeline machinery and material handling equipment alongside metalworking equipment and machinery, it is not difficult to tell which of those sectors was holding up the entire wholesaling industry. Metalworking continued to grow and even hold up the greater part of its expanded industry over time. With Georgia experiencing growth in its commercial and industrial sectors as mentioned before, one can assume (even if one did not know the case studies mentioned above) that Georgia was on the minds of metalworkers across the globe.
The expanding rate of growth in Georgia metalworking seems to be a trend that is not reversing itself anytime soon. Anyone who is looking to get into a growth industry with plenty of upside potential should look at metalworking in Georgia specifically and in the southern United States in general. There is plenty of room for new business in the area as well as mergers and acquisitions that will consolidate older businesses and provide even greater opportunities for expansion.
With the rate of growth of the metalworking industry in Georgia continuing to climb, the value of used metalworking equipment and metalworking machinery is at an all time high. With the value being at an all-time high now is the best time for businesses across Georgia to review their asset recovery program and consider selling surplus or used metalworking equipment they no longer want or require.
While deciding to sell used metalworking equipment the potential seller must be aware of all the options for selling. From choosing the best sale type from, direct onsite auction, and online auctions. While there are many options for selling one option stands above all others. Online auctions offer businesses across Georgia the best chance at maximizing the return while limiting the amount of work included in selling. This includes, advertising, marketing, researching which can easily take months to sell one piece of equipment.
When selecting an online auction platform make sure you do your due diligence as just like not all selling options are equal the same goes for auction platforms. Each online auction platform has its own sets of strengths and weaknesses you must be aware of. For example, eBay may have one of the largest amounts of registered users on the site compare to others, this does not guarantee a sale as not all these users may be interested in purchasing used metalworking equipment. Another factor to be aware of when researching online auction platforms is seller fees. Certain platforms will charge you fees just for listing the equipment on the site, drastically cutting into your potential earnings from the sale.
Unlike our competitors, Aucto has a highly targeted and active base of buyers on our platform ensuring that each auction will be heavily attended by buyers with the intent to purchase metalworking equipment. Unlike other platforms as well Aucto does not charge seller fees to our sellers. This allows you to maximize your return and not to be nickeled and dimed over various seller fees.
Have a question about buying used industrial equipment or selling used industrial equipment online? Give Aucto a call at 1 (844) 326-7339 or email at sellers@aucto.com, and our team of experienced online auctioneers and customer support team will be more than happy to answer them.
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