Reduced capital investment in production equipment has resulted in the purchase of used machinery in a small manufacturing plant. How this manufacturer has benefited through judicious buying of used machinery is told in this issue. Taking into account all of the machinery that is now used in his plant which has been purchased as rebuilt material, a saving of approximately $100,000 may easily be accounted for. At the same time the efficiency of the plant has not been reduced and the maintenance, depreciation and other fixed charges have not increased. This is a specific example of the practical application of used machinery to a large, quantity production factory. If this small enterprising and successful manufacturer finds it economical to purchase and use rebuilt machinery, manufacturers having larger plants and more complicated production problems may find a proportionally greater saving for them. By purchasing the used and rebuilt machinery, through dealers or otherwise, the manufacturer insures himself of prompt delivery, a tried and true machine, at a cost which represents a material saving to him. Several of the machines cited in the article were used for only a few years by the original buyers and were in a condition which allowed them to be placed in productive work almost immediately, upon installation. As is brought out in the article, the company has experienced no excessive maintenance charges and even feels that these charges on this equipment compare favorably with those that must be applied to new machinery.
In addition to these benefits which are not always apparent to the manufacturer in the market for equipment, the company has made available for production purposes, monies that otherwise would be tied up in capital charges on equipment. It has paid them to continue this practice when purchasing replacements or new machinery. A concrete example such as this may serve as a guide to others contemplating the purchase of additional equipment, who appreciate the value of reducing capital investment.
Here We Are Again!
Although the first issue of Surplus Record appeared in November, a number of machinery and equipment buying readers have already responded enthusiastically. Many of these unsolicited communications are testimonials in the highest sense, while expressions of opinions are pleasant to receive, the mission of Surplus Record will not be fulfilled until every one of our 30,000 readers are rendered 100% service and satisfaction.
As was stated in our initial issue, this paper is the “Industrial Bargain Sheet” and as such serves buyer and seller alike. Bringing together those who want to buy and those who have it to sell is the aim we have set. Until we have aided both groups our task will not be accomplished.
With this our second issue are on the road to age, experience and precedent. We will carry our original aim and purpose, which is to be the Industrial Bargain Sheet, and the Surplus and Used Equipment market place.