The Benefits of Working with an Industrial Asset Recovery Partner to Manage Used Industrial Equipment

Article Written By: Fiona Chan

Every business has some industrial equipment under its name. These can range from heavy equipment, metalworking machinery, MRO or even inventory. For example, if you run a metalworking business, you may have lathe machines in your industrial facilities to help run the core operation of your business.

In some cases, machinery, or equipment fall into disuse or aren’t needed for the core operations anymore. These are the surplus used industrial equipment that your business owns but no longer uses.

Surplus industrial equipment costs your business money to own and maintain. Many businesses have turned to asset recovery professionals to understand how much their equipment could be worth on the second market and what their potential recovery could be. .In some cases, many of these businesses are turning to online industrial auctions to sell equipment.

When you’re in a capital intensive industry, handling surplus used industrial equipment can be daunting.  It can be easy initially to put it in the back of a warehouse or in a storage facility but over time, this inventory builds out and it can be tough to know where to start.  But there is usually tons of value in this equipment and what may not be useful for one organization could be essential for another organization’s business. 

Asset Recovery partners can come in with a game plan and coach organizations through the entire process, as well as provide best practices for ongoing management of surplus industrial equipment. Let’s look at the benefits of partnering with asset recovery professionals and what they could mean for your business.

1) Industry Expertise 

Asset valuation is an important part of determining the recovery of your used industrial equipment.  However, there are numerous factors involved in determining the true value of each piece of equipment.  Some of these include:

  • Asset condition
  • Asset age
  • Asset category
  • Warranties & Maintenance History 

These factors impact the bottom line significantly. Asset recovery professionals can help your company perform accurate asset valuations that align with the market and industry dynamics.  They also take into account current market demands to help you set realistic expectations. 

Another huge value add asset recovery professionals bring to the table is they can help you get the best valuation possible. They guide you through how to prepare your equipment for an assessment with the end goal of getting the best possible price from a potential buyer and how to navigate through the whole process.

2) Industrial Equipment Expertise

Asset recovery specialists are experts in taking into account the types of used industrial  equipment you have and using valuation best practices accordingly.  For example, the valuation of a lathe machine would need a different approach compared to the valuation of legacy computers.

Some assets need a different approach altogether to be evaluated correctly as their appraisal does not correspond with historical market data.

Asset recovery professionals can adopt flexible approaches to valuation by gathering benchmarks from similar sales and triggering their network for information and corroborative analysis for a more accurate valuation. They have knowledge and access to information that may not be available to the general public.

3) Sell Surplus Assets in a Tight Timeline

The best advantage of working with surplus asset recovery partners is that they can work on tight timelines. If organizations need to clear out a facility or a part of a facility due to a shutdown or a change in production lines by a certain date, they can send in a dedicated team to manage the entire project to stay on top of timelines. 

An asset recovery partner can help you redeploy, sell, or repurpose your used equipment within a restricting schedule. Their experience and knowledge of resource mobilization enable them to work quicker than your in-house solutions.

4) Access to an Industrial Marketplace

One of the biggest advantages when you are looking to sell used industrial equipment through an asset recovery partner is the access they have to industrial marketplaces.

For example, an industrial auction can be arranged efficiently by your asset recovery partner. They can help you set up a sale event and promote your used industrial equipment through their defined and established buyer networks to attract more bidders for the auction.

Asset recovery specialists puts your business in a better position to have a more successful sale of surplus assets. They help you gain better prices for all your surplus industrial equipment and can help you close sales faster.

5) Deliver a Transparent and Accountable Process

The best asset recovery partners in the industry have a spotless track record of valuations and successful asset recovery deliverables. They have a professional approach, with great client reviews.

Experienced asset recovery specialists have established and clear processes that are simple to understand with little to no grey areas. They let you know beforehand if there would be any challenges in managing your assets and provide you with timely progress reports that keep you updated about the developments.

6) Ensure Compliance

It is essential to ensure that your organization remains compliant with local, national, and international trade standards set for used industrial equipment in your industry. Your asset recovery partners help flag, guide and coach you on the latest mandates and provide processes in place to meet these requirements.  These can range from maintenance reports on equipment to invoicing to proper Know Your Customer (KYC) documents so that you know exactly who you are selling to

Additionally, asset recovery professionals are aware of restricting sales and trade permissions between various entities and/or countries, helping your business abide by the law while managing surplus assets.

This helps you avoid penalties and other fees associated with compliance violations that may end up costing you dearly if ignored. 

7) One Stop Shop for Asset Recovery 

Not only can asset recovery partners provide everything that’s listed above; they often have auxiliary services like cataloguing, project management, and referrals for reputable rigging, removal and shipping vendors that can help simplify and streamline the entire process. A great partner will provide an end to end solution to meet your asset recovery needs including:

  • walkthrough of your facility to get an understanding of all surplus industrial equipment
  • cataloging services to help you collect and organize all asset data including but not limited to asset name, model, make, YOM, condition, internal references and IDs, pictures and videos of the machinery in motion, as well as any maintenance reports and documentation
  • asset staging to ensure the assets are presented in the best possible way for images and potential buyer inspections
  • accurate valuation of your surplus industrial equipment
  • guidance on best options for asset disposition (this may include options to redeploy/share assets with internal teams first)
  • set up the industrial auction to sell equipment
  • Find buyers for the machinery and facilitate buyer questions
  • Realtime reporting on how the industrial auction is performing
  • invoicing and payment processing
  • recommendations for rigging and removal services
  • overall project management services
  • best practices on how to set up a sustainable ecosystem to manage ongoing surplus used industrial equipment that minimizes the costs to your business

Asset recovery specialists can provide you with the full spectrum of reverse supply chain services your business needs to augment its cost savings, while creating a more sustainable business overall. .

8) Scalable Asset Recovery 

Whether your business is big or small, whether you have ten surplus assets or hundreds of thousands – asset recovery processes are scalable.

Your business can freely expand, overhaul, or downsize to desired levels without having to worry about used industrial equipment costing you money . Your asset recovery partners will scale the solutions to the extent your business needs for a viable asset recovery solution that caters to your business.

You can rest assured that your business will have support, regardless of the size or scale that it grows into.

Managing Used Industrial Equipment Helps Your Business Grow

A professional touch is necessary when it comes to managing the used industrial equipment at your business. Hiring a professional asset recovery partner helps your business get better recovery and save on a range of costs involved with owning surplus industrial equipment.

Asset recovery partners like Aucto can guide you through the entire process of identifying surplus industrial equipment, providing equipment valuations, advising on redeployment, resale, repurposing, and even conducting online industrial auctions for equipment and machinery .

To find out more, talk to us today.

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About the Author

Fiona Chan

Fiona Chan is the Director of Marketing at Aucto. Fiona has over 15 years of experience in B2B brand development, lead generation, and digital marketing. She is passionate about creating unified marketing strategies that reflect the brand in an authentic way and believes in making decisions using data-driven metrics.