Today's food plant managers are tasked with continually finding ways to keep their plants on budget. At the same time, the industry demands quality products produced as efficiently as possible - so risky choices when it comes to equipment are not wise. Faulty equipment can lead to unnecessary - and costly - downtime. When the numbers are crunched and all factors are taken into consideration, is buying used and refurbished equipment both a sound and economical solution?
In a survey of Food Manufacturing readers, 99 percent of respondents reported that their plants are involved with the buying and/or selling of used/refurbished equipment. 53 percent of plants reported both buying and selling used equipment, while 39 percent buy but don't sell and 7 percent sell but don't buy. In addition, 56 percent of respondents report purchasing both used/refurbished parts and entire machines.
While price is the driving force behind buying used/refurbished equipment (used equipment dealers estimate that buyers can save anywhere from 40-80 percent on equipment bought at auction), survey respondents reported several other motivations behind buying used or refurbished. Immediate availability was sited by 46 percent of respondents, followed closely by interchangeability and consistency (meaning the used equipment matches exactly with equipment already in place in the plant) at 38 percent. 15 percent mentioned that their plants buy used equipment as intermediate equipment until new equipment is purchased, while only 1 percent mentioned that they are motivated to buy used by environmental and conservational reasons.
Food manufacturers turn to a variety of sources for their used/refurbished equipment buying needs:
- Online sites/auctions - 52 percent
- Other plants - 17 percent
- OEMs - 13 percent
- In-person auctions - 5 percent
- Stores - 3 percent
- Other options (including buying from several of the above options) - 10 percent
Manufacturers have high expectations for their used/refurbished equipment purchases. Besides expecting a significantly lower price point (83 percent), 57 percent of respondents expect the same production quality as they would get from new equipment, while 43 percent are looking for equipment life expectancy that is only slightly lower than that of new equipment. One way respondents attempt to meet all of their expectations is by buying brand names - 88 percent report that brand names still play a key role in their purchasing decisions even if they are buying used/refurbished equipment.
While 13 percent of respondents reported having no problems with their used/refurbished equipment, other respondents sited quality, customization, warranty and customer service issues as the biggest problems they face when buying used/refurbished. However, this is not to say that these issues are unique to used and refurbished equipment, as new equipment could present similar challenges. Overall, respondents point to used/refurbished equipment as viable, cost-efficient option.
Food Manufacturing, Advantage Business Media,
