Article Written By: Clayton Arnold
Industrial equipment and machinery in New York is utilized for industrial processes, such as metalworking machinery, woodworking machinery, material handling equipment, and pumps. Demand for metalworking equipment in New York is driven by manufacturing activity in areas of trade, such as oil and gas, metal fabrication, and retail.
However, cost to purchase raw materials, such as steel, and other partly finished goods have increased from 45.2 to 46.3. This reflects rising pressure on manufacturers in New York to meet their production index.
Nevertheless, with the manufacturing industry in New York continuing its upswing, manufacturers are turning to purchasing used metalworking equipment to cushion the cost. Nevertheless, purchasing used metalworking equipment can be a time-consuming process if you aren’t partnered with a online auction marketplace to make it easier. For those who understand the intricacies of buying used machinery, the benefits can be massive, for buyers and sellers alike.
To better understand how you can leverage Aucto to buy and sell used metalworking equipment, this guideline will explain:
Table of Content:
Manufacturing in New York:
According to a report published by IBIS World, as of 2017, industrial equipment sales in New York increased by an annual rate of 2.4%, being valued at $10 billion. As trade and industrial output surge, demand for industrial equipment will increase in New York to meet demand.
New York is home to a budding manufacturing industry that produces materials used in telecommunications, transportation, aerospace, medical equipment, construction, and consumer products.
Metal and wood fabrication are the third largest manufacturing industry in New York with growing demand from retail sector for niche high-end interiors, accessories, and furniture; and, high-end construction clients. As demand for metal fabricators increases, companies must expand their workforce and investments in fabrication equipment.
New York is a national leader in the production of industrial machinery and parts, specializing in the production of turbines, pumps, compressors, and generators.
However, last week it was reported that the manufacturing index in New York is slowing down as it went from 25.6 points to 19 points. Reason for this decline, analysts explain, U.S. tariffs that have made it hard for companies to source supplies at reasonable prices; which, has increased cost of production.
EMPIRE STATE MANUFACTURING INDEX
U.S. tariffs are making it hard for manufacturers to maintain a stable source of supplies at reasonable prices. Accordingly, companies must now find alternative methods to obtain quality equipment to continue their manufacturing process without having to drastically cut costs or crimp profits.
While the vast majority of states fall under $25 billion dollars with respect to equipment financing, states such as California, Texas, and New York dominate the top three positions, indicating the equipment market concentration.
The state of New York currently invests $53 billion dollars respectively, in helping businesses finance equipment.
Demand for metalworking equipment in New York is being driven by modernization of the manufacturing process. A new trend of manufacturing technologies, such as 3D printing, metal fabrication, and food, are driving expansion and demand for general and specialized metalworking equipment.
The table below illustrates data on metalforming equipment sold in Buffalo, New York in the past. As you will gather, it is not uncommon for used, late-model metalworking equipment to be selling at online auctions for good value in comparison to newer models. As significant demand for metalworking equipment increases in New York, equipment nearing the end of its work life will become more valuable on the secondary market.
If you are a small business or interested in expanding in the state of New York, you should take advantage of state tax cuts available to manufacturers, if you haven’t done so already. These exemptions are applied to the purchase and installation of machinery and equipment, supplies, fuel and utilities.
Small and mid-sized businesses should look into the Section 179 tax deduction which allows qualified equipment and tools purchased for business and manufacturing use to be written off from your taxes immediately rather than depreciated over the coming years. However, Section 179 does have caps limits to the total amount that can be written off. As of 2018, the total amount that can be written off is $1,000,000 and limits to the total amount of equipment purchased at $2,500,000.
To see how the tax deduction works, here is an example of Section 179 applied during the 2018 tax year:
For metalworking facilities in New York that are getting started or interested in expanding, the tax deduction is extremely beneficial because it allows them to invest the money that would have gone into taxes back into their business in the form of acquiring more equipment, skilled workers, etc.
As stated earlier, machining equipment is in demand in New York. Accordingly, online industrial auction is the most efficient method to utilize if you are interested in selling while demand is peaking. Metalworking is a niche industry that carries general equipment like CNC machines but also specialized equipment like 3-D metal printers as well. Online auctions will allow you to market and sell general and specialized metalworking equipment because you are able to attract customers that know exactly what they want, and will want it sooner rather than later.
Metalworking facilities that work with metal fabrication equipment understand the importance of having the right equipment for the job. Online industrial auctions give sellers the chance to attract buyers that are looking for specialized equipment that pertains to their specific needs. If you need a hydraulic press brake, laser cutter, and horizontal band saw all at once, online industrial auctions is the place to find it.
When you sell using Aucto, chances are it won’t be your last time. Whether you are liquidating your plant or selling some machinery to make room for something else, working with a online auction that you can trust to get you the best results will benefit you in the long run.
The more you work with Aucto, the better we will understand your company in order to work together to help you deliver the best sales results.
It goes without saying, many factors go into the success of buying and selling used metalworking equipment through online auctions. If you are from New York and are interested in selling your used metalworking equipment, then connect with Aucto to host your next sale.
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