Proactive Asset Management
Ben Potenza, VP marketing at EquipNet Inc., the company operating the world's leading specialist marketplace for used manufacturing and production equipment, takes a look at how manufacturers are reaping the benefits of buying and selling surplus and idle equipment.
Out with the old, in with the new
Packaging plays a vital role in product innovation in most industries with the global packaging industry estimated to hit close to $1 trillion by 2018. Sometimes packaging is about safety and protection, as in the pharmaceutical industry, for example. For other products its role is to create or reinforce a brand experience, as with consumer electronics brands for example. Oftentimes, it is visual appeal in a retail environment that is most important. Interestingly, a recent industry report highlighted a series of packaging trends for 2016, including: the rise of digital printing to personalise packaging; the market drive for clearer information on packages; a need for larger (and smaller) pack sizes for many products; and the importance of recyclable packaging in the customer buying decision. It is easy to imagine the potential impact each of these could have on production and packaging processes.
Against this background, manufacturing companies around the world are buying and selling all kinds of equipment and production assets. In fact, they always have done, and a variety of equipment dealers and auction houses have been around to help. In recent years however, as forward-thinking businesses have moved to take a more strategic view of managing idle and surplus equipment, a new breed of specialist companies - like EquipNet - has emerged as leaders in this field.
With so much capital tied up in the equipment needed to run a business, and with research suggesting that as much as ten per cent of a manufacturing company's assets lay idle at any one time, it is no surprise that this has come under close scrutiny. Relocating assets to a different facility or, if this is not appropriate, selling equipment that has fallen out of use can deliver a significant return on the original investment in a piece of kit, freeing up useful capital. With growing demand fuelled by the need to control equipment acquisition costs and manage project timetables more efficiently, proactive asset management has emerged as an important tool for enterprises large and small.
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