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| 'Late’ stock still in demand |
Despite the downturn in the economy, demand is still strong in the second-hand plant and machinery market — but only if you have the right kind of stock on offer.
In short, that means late stock.
Richard Mascall, Director of Plant and Machinery at our Birmingham office, explains: “It’s true to say that there is an abundance of old traditional machine tools available in the open market and these items can prove difficult to sell with plant within certain sectors being scrapped, a good example of this is in the pressings industry. However, it’s a completely different story when it comes to late items — anything up to about 5 years old. Here, there is still significant demand even though manufacturers are offering discounts on new equipment. Buyers recognise there is good value to be had.”
“Because demand is good, values have held firm too. It may seem strange that with the economy at an all time low prices haven’t followed, but one of the reasons that demand has remained so buoyant is that there isn’t a great deal of equipment actually reaching the market place. The practice of prepack administration has meant that businesses, along with their plant and machinery, are sold then bought back without ever actually coming to the open market as a whole or as piecemeal items.”
A recent example of good late stock fetching solid returns was in the online auction of FW Precision Engineering Limited’s plant and machinery carried out by Richard’s team. Based in Sparkhill, Birmingham, the company was trading as Able Precision Engineers but went into administration earlier this year. The administration was handled by accountants Smith Cooper.
The subsequent online sale generated plenty of interest from across the UK and Europe. In particular, two major items, Mazak Integrex CNC lathes, one from 2008, the second from 2007, proved to be the star attractions.
Says Richard: “It was a hugely successful sale with very healthy levels of interest beforehand that were ultimately reflected in the bids we received. We were more than happy that the sale reached expectations. In total, it raised in excess of £400,000 and the two Mazak lathes were sold for £87,401 and £83,001 respectively. Clearly the fact that this was an online sale helped deliver the result we were looking for. It meant we widened the buying base as we were able to attract bidders on a global scale.”
“The key to the success of this particular auction was the fact that quality late equipment is still much sought after. The demand is clearly out there.”
For all SHM media questions contact Tony Garner, at Viva PR
01706 214340
www.vivapr.co.uk |
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