Liquidity Services- September 26, 2016
2016 isn’t even over yet and we’ve already seen the effects several major industrial manufacturing trends have had on the marketplace. Megadeal mergers valued over $1 billion are on the rise[i], manufacturers are turning to 3D printing to cut down on parts costs and lead times[ii], and many companies are replacing their old equipment with newer, Internet of Things (IoT)-integrated machinery to cut operation costs even further[iii]. These and related trends are resulting in surplus assets, from heavy manufacturing equipment to rolling stock, that can be a drain on your company’s coffers. Even if you are not paying to maintain unused equipment or unsold goods, they are still sitting there taking up valuable floor space.
There is some good news for companies affected by these trends, however: the right partner can help you transform this surplus into capital to fuel core business. Read on to discover how.
Take Advantage of Merger and Acquisition Surplus
As industrial manufacturing businesses grow through merging or acquiring smaller competitors, they often find themselves with redundant or no-longer-needed assets. Inventories conducted post-merger can turn up outdated metalworking machinery, textiles, waterjets, and other equipment that can be sold in the secondary market, generating capital to fuel your growing core business. An expert surplus asset management partner can help you identify, value, and sell those assets for maximum return.
Double up on 3D Printing Benefits
Early adopters of 3D printing are finding huge savings in both time and money by using this technology to produce solid objects from digital designs on demand. Replacement parts, small prototype lots, and even injection-molded plastic parts can all be produced using this process, reducing design-to-manufacturing cycle times and dramatically altering production economics. As 3D printing technology continues to mature, it could to make some of the manufacturing equipment on your floor obsolete. A forward-looking surplus management program can help you sell the old equipment that may result to the highest bidder, generating working capital to invest in further 3D printing operations.
Generate Unexpected Cash from the Internet of Things
IoT technology has been a huge boon to many industrial manufacturers, as inbuilt analytics enable companies to monitor their equipment’s performance, maintenance needs, energy consumption, and more. Companies upgrading equipment to take advantage of this new technology may not have processes in place to sell their old equipment—or, perhaps even worse, have processes in place that consume more work hours than they return in cash. Even old technology can still fetch a good price in the right market, and a capable surplus asset management partner with global reach can find the right market, target the right buyers, and get the right returns from your equipment.
The Leader in Surplus Asset Management for Industrial Manufacturers
In over 15 years serving your industry, Liquidity Services has helped dozens of the world’s leading industrial manufacturers capitalize on industry trends by managing, valuing, and selling their surplus assets for maximum return. We’ve generated over $1 billion in total sales, with cross-sector expertise across 450 asset categories. Let us help you achieve maximum return for your surplus industrial manufacturing assets.