A recent market study by Credence Research has projected that the mining equipment market will grow to $30.5 billion by 2023. But what does that mean for your mine and how do you determine equipment values in a changing market? One option to consider is a mining equipment appraisal and how you can use the information and insights in that appraisal report to take advantage of good opportunities without risking your business on a poor risk. Here's more information on how equipment appraisals can help you stay ahead of the curve:
Mining Equipment Appraisal: Where's Your Business as the Market Grows to $30.5 Billion by 2023?
But where is this growth coming from and how will your business meet these changing needs for equipment? Countries that are industrializing are demanding more coal and material goods. Even with developed countries implementing new recycling standards to make the most out of scrap metals, they can't keep up with the demand. As other countries continue to develop, the people have more disposable income and require more material goods to improve their standard of living.
As mining companies continue to grow, they demand more equipment to keep up production rates. Companies that have become stable in the industry are often shifting to more modern and energy-efficient equipment to lower their overhead and improve profitability. Improved worker safety regulations demand healthier equipment with less exposure to greenhouse gasses while they work. This demand is driving mining equipment sales.
When your mining company needs to update its equipment, it may be due to wanting a more efficient machine or better worker safety. But what will you do with the older equipment? One option to seriously consider is selling it overseas to the developing markets. Because they are still growing, they haven't necessarily reached the level of stability where they can purchase new equipment. But at the same time, the equipment that you're done using may sell for higher rates overseas where they're desperate for quality machinery than at home, where other mining concerns are selling their machinery for the same reason you are.
As the market shifts, it can be virtually impossible to determine where your mining machinery will fall in terms of value. Why? Because your job is to get coal, ore and other valuable materials out of the earth, not to try to sell your machinery. Many mining concerns find that hiring in an equipment appraiser with experience in the field is very beneficial. It allows you to determine not only which machinery to sell, but also at what time to sell it for the best possible profits. Because appraisal is all they do, the appraiser can determine a fair market value for your machinery based on current market conditions.
As you can see, by getting a mining equipment appraisal, you can decide better when to upgrade or replace your existing equipment while still getting top dollar for the second-hand machinery you sell. But part of the process is ensuring that you're working with a certified equipment appraiser. Why? A certified machine appraisal specialist has the knowledge, experience and methodology to ensure you're getting the right kind of appraisal for your specific situation.