Where They Come From
With those unfamiliar with the used equipment and machinery market the supply of equipment and machine tools appears to be somewhat mysterious. This is no secret of the trade, as is clearly illustrated in the article on the sale of the Weidely Motors Co. as reported in this issue.
As was the case with the Haynes sale two months ago, we are prompted to reiterate the statements we made at that time.
Changes in production methods and failures in business serve as the largest sources of used and surplus machine tools and equipment. Whether changes in methods or discontinuances in business, no reflection is cast upon the individual tool or machine because of its resale. The machine is still the same efficient producer it was prior to its sale and in very few cases did it figure in the change of ownership which was necessary for the economic good of the business or the industry as a whole. Once in a while the machine may be ill suited to the work. In such cases a change in ownership should also involve a change in use.
Machine tools in the Weidely Motors Co. plant will find places in the production structure of industry which will give them a new lease on life commensurate with their original design and production ability.
Replacing the Used Machine
Those interested in the manufacture and sale of new machine tools are continually asking the question among themselves as to what is to be done with the used machinery which they hope to replace with new. Recognizing that one of the largest, if not the largest, market for new machinery lies in replacement of used, the manufacturer continues to devise ways and means of replacing machinery as often as it is possible with due regard to economic laws and personal pride.
Builders of machine tools take particular pride in the life of the machines and the service they will render. Depreciation and obsolescence rates and charges, they advocate, should be maintained at a low figure. Opposed to this, however, is the other attitude brought about by the desire for further sale of replacing the machine tool with a new one. When a purchaser decides that a machine tool must be replaced by one of larger size or improved design, the manufacturer feels that the substitution should be made with a new machine. All thought of the value and worth of the used tool immediately leaves his mind. The used machine becomes a menace to further trade and should be scrapped.
Nevertheless, the market for new machinery would be greatly handicapped in its sales effort were it not for the used and surplus market which produces openings for new machines. Replacement with new machines can only be expected to a degree where it fills the just needs of the industry as a whole.