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Article Written By: Clayton Arnold
With a huge push towards sustainable building and using recycled materials, the sale of metalworking equipment in Arizona is growing. The market for this equipment has always been substantial, with longstanding companies like ON Semiconductor, Amkor Technology, Swift Transportation, U-Haul and Southern Copper all holding major offices or headquarters around Arizona.
With a list of companies like the above, it can be difficult to imagine some of the unfounded rumors about selling metalworking equipment in Arizona are true. A good look at the numbers helps even the biggest skeptic to realize that there are massive opportunities available to sell this kind of equipment in many industries.
Below we will look at some of the more prevalent myths about selling metalworking equipment in Arizona so that you can make an informed decision about how to proceed if you are in this industry.
The concept that the state of Arizona is not a manufacturing hub of the united states of America could not be further from the truth. This myth must have originated from some local’s belief that the grass is always greener on the other side syndrome. Arizona is the nation’s leading producer of copper metal as such Arizona cooper production accounts for 60% of the total for the united states. This raw copper once mined is melted down and then used to create everyday products used worldwide such as cookware, pipes, cables, currency and high tech computer components. Currently there are over 12 active mines in Arizona that employ over 10,000 workers.
With over 150,000 people employed by a manufacturing organization, it’s easy to assume Arizona deals with more than just cooper products. The average wage for an employee in a manufacturing position in 2014 was over $68,000 which is notably higher the Arizona median family income which is just below $62,000. Other companies that manufacture products with metalworking equipment in Arizona include, Mobile Mini who manufactured and transports welded steel cargo containers, Chandler’s Intel produces semiconductor and computer chips used in electronics all around the world, The Ball Corporation in Goodyear AZ manufactures aluminum cans for beverages, and Valley Forge & Bolt Manufacturing Co. in Phoenix manufactured bolts and fasteners of all types. This is only a taste of the manufacturing power that the state of Arizona contains. As such it is easy to quickly dispel the myth that nothing is manufactured with metalworking equipment in Arizona.
Some of the top employers around the state of Arizona with these needs include Banner Health, HonorHealth, International Cruise & Excursions, Inc., Microchip Technology, Benchmark Electronics, Magellan Health, the Scottsdale Rural/Metro Division, Discount Tire, Knight Transportation, First Solar, Consolidated Graphics, Carondelet Health, the City of Phoenix, Mesa Airlines, Northern Arizona Healthcare and TriWest Healthcare Alliance. To give an idea of the scale of these companies, the smallest among them employs 3,098 people as of 2018.
Many companies from California are making a move into Arizona because of an advantageous tax situation and a lower cost of doing business. This is a trend that is especially prevalent throughout the tech industry, where the cost of doing business pales in comparison to Silicon Valley.
The market for metalworking equipment is also expanding because many of the companies mentioned above are looking specifically for used equipment. Buying metalworking equipment in a completely new state is more expensive and may not be worth the investment of time or capital. Also, used machinery does not equate to old machinery. In many cases, good metalworking equipment sellers will have tiers of utility and certified guarantees on used equipment in terms of quality control.
Companies in Arizona make use of secondhand equipment when they have a piece of hardware that breaks down, especially if the warranty on that hardware has expired and they cannot get free OEM parts any more. Many industrial companies will also use legacy machinery that does not coincide with the current production of OEM parts makers. These companies are forced into the secondhand market. Used metalworking equipment also has a shorter lead time, meaning that emergency situations are handled with greater expediency.
Much like the previous myths in this list it is hard to find a legitimate origin for this argument and the reality is completely different than this myth would lead one to believe. There are many benefits for manufacturers across the state that can have drastic impacts on your business. One of the biggest instances of this would be operational costs. In today’s business climate cost is constantly under a microscope looking for ways to reduce spending. Businesses across Arizona on average will experience operational costs that are 42% less than the neighboring state of California. With reduced cost on operational expenses owners of these manufacturers can more readily redirect the savings into newer metalworking equipment rendering the previous equipment perfect for re-sale in the market.
As the old proverb goes there are only two things guaranteed in life. Death, and Taxes. While eliminating taxes is near impossible Arizona does a lot for local manufacturing companies with their tax rates. Arizona is proud to boast no business inventory tax, to go hand and had with a corporate tax rate of 6.9% which is among the lowest in the country. However the benefits do not stop there manufacturing companies in Arizona also have sales tax exemptions on machinery or equipment used directly in manufacturing, as well as electricity and natural gas sales tax exemptions for businesses that have primary operations in manufacturing or smelting.
All this means Arizona is a business first state that has plenty of tax benefits for manufactures. With these cost savings as well as the tax exemption for purchasing equipment and machinery its clear that there would be a strong and thriving market for selling used metalworking equipment in Arizona when new equipment is purchased and put into operation.
Hiring a professional auctioneer may have been the only choice in the business generations before online auctions became viable. However, those days are gone. The proliferation of the Internet has allowed the used metalworking industry to connect to its potential buyers without the use of a middleman. There is also a certain skill that auctioneers had to have when conducting a live auction that is not necessarily useful in this current generation of digital auction spaces. The platform does all of the work without the need to take enormous fees or even a large upfront fee for conducting the auction.
In short, moving your used metalworking equipment business into the online auction space is a great move for business. You save the money of hiring an auctioneer and the time that you would normally spend vetting that person’s reputation. You do not have to worry about human error during the auction or the auctioneer interjecting his own personal bias into the proceedings. You will be able to do business with a platform that understands your industry specifically and gives you the power to set up your auction in any way that you see fit.
While this myth may have been true in the past, currently in 2019 this could not be further from the truth. While the number of online stores and the rise of eCommerce may have aided in finding more buyers when selling metalworking equipment there still has yet to be a reliable service until now.
Aucto.com is Arizona’s top rated online industrial auction marketplace. While other marketplaces may have the occasional metalworking machinery or equipment available, this equipment is hard to find and easily gets pushed down by more consumer-friendly items like the latest video game or last years cell phone. Aucto is industrial only this means you won’t have to worry about your equipment being pushed down.
Aucto is also unique from other online auction platforms where for sellers it is completely free. There are no high seller fees eating into your profit. With Aucto there is also no pressure to sell your equipment, if you list something on the site and then decide you no longer want to sell the item you have the control to un-list the item with no questions asked.
Since the platform is for metalworking equipment and other industrial machinery, you know the audience of the site is specifically looking for this type of equipment ensuring a quicker turn around for selling the equipment instead of taking an ad out in the local paper and putting a for sale sign on the equipment. Regarding marketing as well Aucto is the only platform that will actively market your equipment for you. Whether it is through email marketing, social media marketing or even telemarketing Aucto ensure the right buyers can find your equipment the moment they need it.
With no risks and full control, it’s easy to see why this is the most reliable platform for selling metalworking equipment in Arizona. See for yourself click the button below and create a sellers account for FREE and see the difference Aucto can make for business.
It’s easy to fall for the countless number of urban myths surrounding metalworking equipment, however, hopefully we have dispelled these 5 extremely common myths. Did we forget some? Are there more worth exploring? Send any myths you may have to support@aucto.com and we will gladly answer them for you.
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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