Foreign orders for used machinery have stimulated the general demand, although the majority of these orders have been filled out of dealers’ stocks. The Japanese and French have been the largest buyers within the last 30 days.
During 1938 the rebuilders of machine tools had a greater proportionate increase in their foreign trade than from domestic shipment. In recent years foreign manufacturers have been availing themselves of the economy of used and rebuilt machines obtained in the American market. They have undoubtedly found this equipment satisfactory because they are continually coming back for more.
While domestic inquiries for used equipment have been active, buyers have been somewhat slow in closing. In view of this demand for used American equipment abroad it is quite possible that there will be a scarcity in the market if this demand continues. This situation offers the American machinery builder an excellent opportunity to get his “foot farther between the door” on more of this foreign business. All of these rebuilt machines carry the trade-mark of the original builder, so the natural tendency will be to gauge the efficiency of American machinery by all equipment, both new and used, which is purchased in the United States.
We have always stressed the importance of cooperation between the machinery manufacturer and the dealer in rebuilt equipment, particularly the importance of keeping their machinery operating in plants. These manufacturers will do well to better this cooperation because the reflection from any unsatisfactory machines in foreign lands will eventually be laid on their doorstep. The fact that all of this machinery is American made places an added responsibility on the shoulders of the rebuilder as well, because if American machines are to retain their lead in the eyes of foreign manufacturers the performance and condition of each and every machine should be of utmost importance. If we are going to keep our position as a leading export nation this is another way of keeping out in front.