The way we are conducting business has changed. The metalworking industry has seen its growth slow dramatically due to the outbreak of the COVID-19 Virus and supply chain disruptions all over the world. A recent study conducted by IBISWorld showed that revenue decreased 11.3% in 2020. In addition to revenue decreasing, the study also found that the industry’s profit margin decreased and is expected to stay that way for the foreseeable future.
With a shortage of raw materials due to various supply chain challenges slowing and causing delays in production, many decision-makers are looking for additional ways to drive more revenue into their operations while eliminating any unnecessary costs.
As the demand for metalworking machinery continues to grow in the second market, more organizations have started exploring selling idle or surplus machinery and equipment to help clear up expensive storage space, while adding cash back to the bottom line.
Why sell your used & surplus metalworking machinery
- Recover Asset Value – One of the most important reasons an organization should look to sell their idle and surplus metalworking machinery and equipment is recovering value back on these assets and generating positive cashflow. The funds earned from the sale of these machines can be added directly to the organization’s bottom line. The increase in operating cash could allow you to improve existing machinery or processes within your facilities or purchase more up-to-date technology, resulting in better efficiency. This increased efficiency can result in better profit margins for your organization.
- Reduce Operational Fees – Even if a machine is surplus to your operations and not in production, it is still costing you. By selling these machines, you are able to cut maintenance costs for machinery that is not being used and prevent storage costs associated with holding the equipment. This should be seen as a win-win scenario as you are able to recover value and decrease costs in one simple step.
- Recover Storage Space – The final reason you should consider selling surplus and idle machinery is recovering space within your facility. It is all too common that organizations hold onto machinery they no longer need, and it ends up taking valuable space in your facility. By selling this equipment, you are able to take back space and put it to better use.
Types of metalworking machinery in high demand on the second market
- CNC Machining Centers
- Lathes
- Milling Machines
- Welders
- Drilling Machines
- Press
- And more
How much is my used metalworking machinery worth?
When pricing metalworking machinery, there are several factors you must consider. Being aware of each of these factors will allow you to quickly and easily determine a valuation for your equipment. Factors that need to be considered include:
- Age & Condition – If your machinery is older or has seen better days, you can expect a lower return when compared to a new machine in well-kept condition. If your machinery is older, ensure it is in good condition or has proper maintenance history if you want to maximize your value.
- Brand – When it comes to metalworking machinery, not all brands are the same, and some brands are much more desirable in the second market than others. When attempting to price your metalworking machinery. always include the brand and model number to ensure the maximum possible return.
- Supply & Demand – In any free market, supply and demand can affect the prices of commodities. When pricing your machinery, it’s good to do a little research on the current trends in your intended market to see if other similar equipment is out there and how many people are buying it.
- Generic Vs Specific – A more generic machine tool is far more likely to sell for a higher price than a machine tool that has been customized for your application. While customization may yield more production and results for you, it may limit the number of buyers looking to buy that item. This is because highly specialized items may suit your needs but the same specializations might make the item unusable to the next buyer.
Determining the value of your metalworking machinery can be complicated and time-consuming, but it does not have to be that way. With the Aucto Asset Valuation tool, you can find out what your metalworking machinery is worth at no cost in a few easy steps!
The Aucto Asset Valuation Tool uses multiple credible and verified third-party sources to provide real-time data on the latest average value of your equipment and machinery.
All you have to do is send us a list of your assets. There are no costs or obligations.
Fill out the form below and send us your list of assets. Our Asset Recovery Experts will be in touch within 1 business day to give you your valuation.
