Article Written By: Clayton Arnold
Table of Contents
Industrial equipment represents a significant investment for many organizations. When equipment becomes surplus due to a facility closure, or simply because it has outlived its usefulness, this does not always mean it no longer has value to the organization. Businesses often have idle or excess equipment occupying valuable space due to a variety of factors including:
This is the point at which having an asset recovery strategy becomes necessary. An asset recovery strategy allows organizations to extract the outstanding value from surplus machinery and equipment and leverage the value into operating capital.
An asset recovery strategy starts with identifying any idle or excess equipment owned by the organization. In certain instances, a company owner or management team may already know what equipment is obsolete. In other instances, reviewing internal documentation to look at slow-moving inventory or machinery sitting idle in storage facilities allows you to quickly identify assets that are surplus to ongoing operations within the organization.
Once all surplus assets have been identified, you can begin your asset recovery strategy. e will discuss 4 steps of an asset recovery process below:
Redeployment refers to the process in which an organization identifies another use within a second facility for an asset that was previously unused or idle. This asset can be redeployed within its existing facility to another production line, or to another facility within your organization. Popular equipment or machinery that can be redeployed include: proprietary machinery, heavy equipment, and installed processing equipment. This method holds the highest recovery value as the asset stays within the organization.
Assets can be used again by reconditioning or refurbishing equipment to get the equipment back up to operational standards. Once reconditioned, this equipment can be put back to work within the production line. The reuse of old equipment saves money (and helps the environment) because fewer pieces of equipment end up in landfills.
Popular equipment or machinery that can be reconditioned include instrumentation, pumps, valves, and motors. Even if the parts cannot be put back directly into production, it is handy to keep as a backup in case those parts fail on the main line. Having these parts on hand can also cut down on costly downtime and allow your organization to retain the value of the asset.
If redeployment or reconditioning aren’t viable options for your assets, the next step is to look to recover value by reselling your assets. While there are many methods of selling used industrial assets, the concept at its core is about seeking buyers who are willing to pay for the machinery you no longer need. The funds from this sale can then be added directly to companies’ bottom line or used to purchase new assets.
Popular equipment or machinery that can be resold include: MRO, Metalworking Machinery, Material Handling Equipment, and Heavy Machinery.
Removal should always be the last option of an asset recovery strategy, and only be used if you’re unable to redeploy, recondition, or resell the equipment., While the monetary value for this method of recovery is the lowest, it nonetheless allows you to recover valuable storage space.
If you don’t know how to recover value from used and surplus assets, this can be a large undertaking, which takes a lot of time away from other core business tasks. It’s a good idea to hire a professional asset recovery organization like Aucto to handle every step of the process and help you get the most out of your used, and surplus industrial equipment.
Professionals specializing in asset recovery have extensive expertise enabling you to recover the most value possible, while still allowing you to focus on your core business functions.
You can quickly and easily sell your used industrial equipment to people from all over the world. Selling on our Marketplace is free and comes with no risk; you can set up your Sales Event in just a few minutes.
Aucto offers a wide range of onsite services, from cataloging assets to managing large-scale sales projects. Our teams can move quickly to your facilities and take care of the whole asset recovery process.
Click the link below to book a meeting with one of our asset recovery experts or give us a call at (844) 326-7305 today.
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