Equipment Appraisal Blog | Understanding Machinery Appraisals

What Kind of Equipment is Evaluated During a Graphic Arts Printing Equipment Appraisal?

Posted by Equipment Appraisal Services on Mon, Jun 29, 2020 @ 08:00 AM

Man in printing house showing client printed documents
Is printing and graphics a central concern of your business? If it is, the value of that equipment can make up a solid portion of your business' overall assets. However, that equipment is often misrepresented in terms of value in your balance sheet. Because this type of equipment often has a long lifespan, equipment depreciation rates used in tax tables may reduce your equipment's value to zero long before it has stopped providing value for your business. Here's a quick look at the kind of equipment you can get an estimate of value with during a graphic arts printing equipment appraisal.

What Kind of Equipment is Evaluated During a Graphic Arts Printing Equipment Appraisal?

  • Sheetfed Offset Presses: Used for a wide range of different printing purposes, sheetfed offset presses are often at the heart of businesses that provide a number of products in different sizes, including newspapers, advertisements, postcards and similar paper products. Because sheetfed offset presses deal better with this range of sizes, it provides superior flexibility in daily operations.
  • Web Presses: Producing documents using huge rolls of paper rather than individual sheets, web presses deliver efficiency and economy for many businesses, providing a better option for mass production operations. However, it represents a serious investment for many businesses, which can be rolled into your balance sheet for more accurate figures.
  • Pre-Press Equipment: From high-end computers that are designed to handle the burden of graphics design to the specialty equipment you use for providing proofs to clients prior to mass production, your pre-press equipment keeps orders rolling in without getting in the way of your mainstream operations.
  • Bindery Equipment: As anyone in the business can tell you, what the product looks like on the press can be very different than the finished product. Folders, stitchers, trimmers and similar machinery help turn loose paper into a quality finished product, with sharp folds, quality binding and neat edges.
  • Materials Handling Equipment: When you need to move pallets of paper or other material to keep your presses rolling, the equipment you use in this process is the lifeblood of your business, keeping things from grinding to a halt when a new shipment arrives or a machine needs to be replenished to continue getting the job done.
  • Shipping Equipment: Unless you run a local-only shop, you're probably going to have to ship your products to your customers. Whether it's shipping scales, conveyor belts, packaging machinery or similar equipment, being able to get your finished product boxed and out the door helps keep your workspace free for operational purposes.
By having a graphic arts printing equipment appraisal performed on your business, you can ensure that you have an accurate estimate of the value of your business assets, giving you a more accurate balance sheet. When presented in an appraisal report from an accredited equipment appraiser, you can use this information to help in a range of different situations, whether it's filing an insurance claim after an equipment fire, appealing a bad tax assessment or securing financing for growing your business.

Tags: printing equipment appraisal

What an Appraiser Investigates During a Printing Equipment Appraisal

Posted by Equipment Appraisal Services on Tue, Mar 22, 2016 @ 10:00 AM

printing_equipment_appraisal-1

If you're in the printing industry, you may have considered having a printing equipment appraisal performed to determine the value of your machinery. But what exactly is involved in having your machine appraisal performed and what is an equipment appraiser looking for when they inspect your machinery? Here's our take on what is considered when a printing equipment appraisal is performed:

What an equipment appraiser looks at during a printing equipment appraisal

  • Does the printing machinery perform properly? This will take a solid look at the quality of the materials the printing machinery is producing, whether it's in the printing quality itself, the binding, edge cutting and trimming or similar processes that are common to printing industry production work. A machine that isn't doing its work properly or needs to be constantly reset to stay within specs may receive a much lower machine appraisal than printing equipment that is functioning as it should, due to the problems such machinery may have down the road in maintaining regular quality.
  • Has the equipment been well maintained? This will tell the appraiser about whether further inspection of related systems is warranted. If needed repairs have been put off, it can cause additional wear and tear to connected systems. A qualified machine and equipment appraiser knows they need to check for further issues at that point. You can provide easy documentation of maintenance and repairs through logs, receipts or other service records, helping make that part of the process go a little easier. Poorly-maintained printing equipment tends to have a shorter lifespan and lower value.
  • Is the machinery being kept in extremely hot, cold or humid temperatures or dusty, dirty conditions? If it is, it may also wear faster than other machinery that is kept in better conditions. This will also usually cause a lower valuation due to a shorter expected lifespan.
  • Does the machinery show signs of significant damage or abuse? If your printing equipment has serious dents, bends or structural issues, it may cause safety issues or fail much sooner than similar printing equipment that has been taken care of properly. A good appraiser will take this into account in terms of how such abuse will affect the expected value of the machinery.
  • Has the machinery been altered or had features added that were not approved by the manufacturer? If after-market additions make the machinery work harder to get the job done, even if it provides better features or more convenience, it may cause the machinery to wear faster and have a lower value.
  • Is the machinery in demand in your industry? Current market trends can affect the appraised value of your equipment, no matter what your reason for having the appraisal performed. If your industry is booming, the equipment may be valued at a higher figure, while an industry that is in a serious slump may have a hard time selling used equipment.

By knowing the value of your printing machinery, you can make better business decisions, whether it's when to sell old equipment, if you have the assets to back up a potentially risky business opportunity or to gain financing for an expansion that uses your equipment for collateral. If you need to have your printing equipment appraised, please contact our certified equipment valuation specialists to schedule an appointment.

Tags: printing equipment appraisal, commercial printing