Industrial equipment manufacturers are constantly updating machinery and coming out with new, technologically advanced models. Therefore, it can be tempting for businesses to simply dispose of old equipment and shell out for the latest and greatest. However, this isn’t always the best approach. Here are four good reasons to give industrial equipment a second life.
1. Save money upfront
Purchasing used industrial equipment is far cheaper than buying new. In fact, the price difference between new and used equipment is around 30 to 70 per cent, which translates into thousands of dollars in savings. Plus, previously owned industrial equipment is often in “next-to-new” condition and performs just as well as machinery fresh off the production line. Therefore, companies can vastly improve their cash flow by investing in used machinery instead of buying new, especially if it’s in good condition.
2. Avoid initial depreciation
New industrial equipment immediately depreciates as soon as it leaves the manufacturer. In general, the latest equipment can lose up to 40 per cent of its resale value in the first year. Consequently, companies buying used equipment don’t have to take that initial hit of depreciation. For example, if a piece of equipment was bought for $20,000, the value would immediately drop to around $13,000 in the first year. If the equipment is maintained appropriately, its value typically holds strong over the next five years. Therefore, buying equipment that’s a few years old costs significantly less upfront and holds its value longer.
3. Save time
Industrial projects are often on tight deadlines, so having the right machinery to complete the job can make the difference between finishing on time or falling behind. Although the latest equipment is great, it can take months to be manufactured and shipped to a business’s worksite. In contrast, used industrial equipment is available immediately and isn’t subject to long wait times and delays. A company could purchase a piece of used machinery and start using it that same day. Visit Carter-Wilson’s website to explore previously owned industrial equipment available now.
4. Increase sustainability
Climate change is top of mind for commercial businesses today, and many companies are looking for ways to reduce their environmental impact. Buying used equipment is a great way to do just that. Giving lightly used, previously owned industrial equipment a new life helps reduce the demand for new machinery and the resources required to manufacture it. This helps conserve natural resources and reduce carbon emissions.
Second-hand industrial equipment: worth considering
Although staying up to date with the latest trends in industrial equipment has its merits, purchasing used machinery may be more beneficial to a company’s bottom line. Moreover, it’s worth exploring options for refurbishing or repurposing equipment to extend its lifespan and save on replacement costs.