Equipment Appraisal Blog | Understanding Machinery Appraisals

Mining Equipment Appraisal: Where is the Market Going?

Posted by Equipment Appraisal Services on Tue, Dec 27, 2016 @ 09:12 AM

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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.

Tags: machinery appraisal, mining equipment appraisal

Update Your Practice with a Medical Equipment Appraisal

Posted by Equipment Appraisal Services on Tue, Dec 20, 2016 @ 01:00 PM


When you work in health care, it can seem as though every week brings a new piece of equipment to your attention. Whether it's a new diagnostic tool, new therapy machine or something specific to your specialty, there's one thing that is almost always true: it's too expensive. But what if you could leverage the value of your older medical equipment against that total? As new technology is adopted, there's a limited window of opportunity between the time that the new equipment hits the market and the older technology becomes obsolete. How do you know when it's the perfect time to act and get the most from your older equipment while not paying the inflated cost of the latest and greatest? Medical equipment appraisal.

Update your practice with a medical equipment appraisal

When you talk to a medical equipment company, they may tell you that your equipment isn't worth much and that you need to upgrade immediately to take advantage of new technology. However, look at it from their point of view. They want to sell you new equipment and move your old equipment as quickly as possible. Without even looking that closely at what features your equipment may have or kits that have been added to the system, they're going to give you a low ball price on your old equipment to get it out of the way for the new equipment they want to sell you.

An independent machine appraisal specialist, on the other hand, has nothing to gain from the sale or purchase of equipment in your business. They don't have a commission riding on the final price. Their job is to take a good hard look at your equipment and use a solid methodology to determine your equipment values. They may even know about alternative markets where you could get better money for your equipment than the local businesses, such as going through the export process to sell older equipment to overseas buyers who will pay a premium to get good used equipment that's actually from this century.

There's one other thing that a professional machine appraiser will look at as well. Where is the equipment located? Though it's pretty easy for someone to say what the machine is worth, they may not take into consideration that moving it will require taking out that new partition wall because the other doorways in the practice are too small for it to pass through. In any situation, a qualified appraiser will mention these potential issues.

As you can see, getting a quality medical equipment appraisal helps ensure that you can get the most out of your older machinery while ensuring you can afford the cost to adopt new technology in your office. But before you go with just anyone, make sure the equipment appraiser is certified. Why? Certified equipment appraisers have been trained in standardized methodologies that will hold up to strong scrutiny, whether it's with an insurance company, financial firm or even in a court of law.

Tags: equipment appraiser, medical equipment appraisal

Getting What It's Worth: Using a Manufacturing Equipment Appraisal for Negotiations

Posted by Equipment Appraisal Services on Tue, Dec 13, 2016 @ 09:30 AM


When you have manufacturing equipment that you're getting ready to replace due to age or needed upgrades, there's always a concern that you may not get what the machinery is worth. This can lead to financial issues with your company or perceived ideas that the machinery was sold for less than it should have been. How do you get what your equipment is worth when it's time to negotiate? A manufacturing equipment appraisal can provide you with the documentation you need to get a fair price.

Using a Manufacturing Equipment Appraisal for Negotiations

Many people assume that equipment appraisals are simply calculated based on what the market will bear. But what happens if you're only planning on advertising the equipment in your industry, which is currently in a slump? What about the market as a whole? Will there be additional costs for removal that need to be taken into consideration? These questions will all play into your initial asking price and the point from which potential buyers will negotiate. 

If, for example, everyone in your industry is inserting magnets into their plastic molds, does your machine have that capability? Added to the initial value of a machine without that capability, a retrofit or after-market kit may be required to add that feature. Machines that are left without that feature or that are incapable of being upgraded to include it may end up receiving lower final sales prices, because they won't keep up with the latest trends that newer, more expensive machines are able to contend with.

But what if you're not following the latest trends, because you provide more traditional means of production? Many companies find that hiring someone who professionally specializes in equipment appraisals has a finger on the beat of change in the industry. Hiring a well-qualified, certified equipment appraiser can mean the difference between knowing when to sell your machinery and when you're just going to be stuck with it.

Another area where businesses often take a hit on selling manufacturing equipment is by assuming its value is what the tax accountant says it is. The problem with that value is that machinery often ages faster or slower than the depreciation tables issued by your tax agency. If you have quality equipment you've kept in exceptional shape, you may sell it for less than it is actually worth, because it would still operate for several years after the equipment has been fully depreciated and shows a value of zero. If your equipment takes a beating because of your location, environment or manufacturing practices, it will probably fail before it is fully depreciated, which will lead to potential buyers backing out because your asking price is then too high for the expected useable lifespan, another measurement a good appraiser will calculate for you.

As you prepare for negotiations, having a manufacturing equipment appraisal ensures you can negotiate from a point of power, with documentation that your requested price is fair and reasonable. But are you working with a certified equipment appraiser? A certified appraiser uses a standardized methodology in calculating your machine appraisal report. This ensures it will hold up to scrutiny whether you're in the meeting room, the board room or the courtroom.

Tags: manufacturing equipment appraisal

Mad Science: How a Laboratory Equipment Appraisal Helps You Upgrade

Posted by Equipment Appraisal Services on Tue, Dec 06, 2016 @ 12:30 PM


When you're working in laboratory research, you know just how expensive precision equipment can be. How do you afford the upgrades that are needed for your next phase of research? How do you encourage investors to put their money in your facility if you're not sure you can get the job done for them? Fortunately, there's a better way of raising money for new equipment without having to sign away that spare kidney you haven't quite perfected on the 3D printer. Laboratory equipment appraisal helps you ensure you can make your upgrades at the right time, for the right amount of money. Here's how.

Mad Science: How laboratory equipment appraisal helps you upgrade

When your lab needs an upgrade, there's a couple ways to go. You can sit on the equipment for a long period of time, hoping that someone will get around to finding out a fair value while it loses value sitting in storage. You can sell it immediately for a low price, ensuring it's gone and you've got a little extra cash. Either way can lead to bad outcomes. 

We've all seen it on occasion - labs that are selling out their old equipment at rock-bottom prices. Maybe it's equipment that's so old, they'd be lucky to pay someone to haul it away. Maybe it's equipment that's been seriously undervalued and is flying out of the building as quickly as it can be sold. In either situation, the laboratory business loses. How can you ensure you're going to get a good price for your older equipment? 

Two words: equipment appraisals.

When you have a machinery valuation performed on your lab equipment, you know what it's actually worth. Instead of having Tony the Terrible Intern pricing out your equipment based on prices from last year's College of Science sale, you can set a fair price on the equipment. Instead of it sitting around, taking up space and losing value because you're scared to lose it for less than it's worth, you can sell it on very short order to another company and immediately turn that cash into better equipment for your research. But what's different about getting equipment values from a certified equipment appraiser and what do they have in common with your researchers?

A certified equipment appraiser spends their time using standardized methodologies, much like your researchers do. In both cases, you get a standardized process that provides uniform results at the end of the run. It also takes into account helpful information like how much longer the equipment will probably remain useful, allowing you to prioritize your equipment sales, as well as when it's going to lose value more quickly, so you can get it out of your facility while it's still worth something.

By keeping these tips in mind and monitoring your values through a laboratory equipment appraisal, you can ensure that you're going to be able to make those upgrades that your facility and investors are clamoring for. If you need to determine equipment values and aren't working with a certified equipment appraiser, you could be leaving money on the table. A certified machine appraiser has the knowledge and experience to give you an accurate machine appraisal report that will stand up to scrutiny because they use standardized methodologies in their process.

Tags: laboratory equipment appraisal