Buyer's Market for Machinery
Buyers in the market for CNC, EDM and other industrial machinery are licking their chops...
Feburary 9th, 2009
Well positioned, forward looking manufacturing companies will be benefiting from the current market slowdown. The market for used machinery over the past 6-12 months has been relatively slow. Used machinery dealers have more inventory on-hand than they would like right now and buyers are benefiting.
Machinery auctioneers have looked to be largely unaffected by the recent downturn. While it has been tougher to get their clients premium prices at auction, they have stayed busy trying to do so. Over the past 3 years, there has been a trend in the used machinery industry by auction companies to take their clients' machinery to market online. Look for the online auction companies to get even stronger when the market gets stronger - manufacturing companies will be looking to upgrade.
The market down turn is forcing many companies to scale back operations and liquidate unused and surplus machinery in an attempt to ride out the current decrease in manufacturing demand. The smaller machinery shops stand lees of a chance to get back into the marketplace when demand increases again. I costs their customers too much to flop back and forth with their manufacturing needs
As far as the machinery lending business goes, with fewer purchases, lender competition for your business has lowered rates for qualified buyers. Looking to add a HAAS VF-2 or a Fadal VMC to your shop? Chances are you will be in the driver seat and have many financing options when it comes time purchase.
Shop around a bit and you will likely find advertised rates for used machinery financing in the 7% range!