Buying Used Machinery Can Be a Great Way to Cut Costs Without Breaking the Bank
Purchasing used machinery can be a great way to cut costs without breaking the bank. It is important to consider a few things before buying used equipment, such as the condition of the machine and its maintenance history.
Just like cars, industrial machinery depreciates quickly after it’s purchased. Purchasing used equipment helps to avoid the initial depreciation and may allow for tax write-offs as well.
Price
Adding new machinery to a shop can be an expensive undertaking. There are a lot of moving parts involved in a machine purchase from machine design, controllers, drives, and electronics to freight, installation, training, warranties and more.
Choosing a used machine can save businesses money upfront that they can put toward other areas of their business such as additional equipment, salaries or staff. It also allows them to skip the depreciation cliff that comes with buying new equipment. When looking to buy a piece of used machinery, it’s important to understand the market conditions that impact value. Buying from a trusted seller is important as well as having maintenance and service history documents to ensure the equipment was regularly cared for. In addition, knowing what the underlying reasons are for a sale can also influence price; if a machine is selling in a weak market it may be less expensive than a similar one that’s sold in a strong market.
Reliability
Equipment reliability has a direct impact on productivity, downtime, and competitiveness in industries. It is a critical component of effective maintenance and operations management (ERM). This article explores techniques, metrics, and best practices to help improve equipment reliability in your organization.
New machinery has the latest technology both in machine design as well as the most up-to-date control systems and drive technologies that make them fast and safe. New machinery also has many features that save time and money by making the process more efficient.
Used machinery has less technology in it and may not have any warranty left. It is important to have a good mechanic inspect the machine and to review the maintenance records before purchasing it. Also, it is a good idea to implement an equipment reliability program using techniques like FMEA and condition monitoring that will gather granular data about the machine and identify potential failure modes. This data can be used to optimize maintenance strategies and schedules.
Transparency
A developing machinery supply scenario with grain prices lower and profit margins tighter means that producers should ask more questions of themselves and of the dealers they work with. A good way to start is by gaining an understanding of the different types of new and used equipment available, Roberg says.
New machinery often features cutting-edge design and technology in the areas of machine design, controls and drives, and electronics. This can mean higher levels of accuracy, speed and overall performance compared to older models. However, some buyers may find that a new machine does not meet all of their needs. For example, if a buyer needs to be on the job site within a certain time frame, new equipment can have a longer lead time than used.
This can create more frustration and stress for a company’s operations. It can also be a financial disadvantage as the new machine will depreciate in its first months and years of use, making it less attractive for tax write offs compared to used equipment. If needed, interested individuals can click here or visit our official website in order to know about used machinery.
