Managing Growth Responsibly One Machine at a Time

Maintenance is another important indicator of future performance. At the very least, a reputable provider of pre-owned equipment should be able to explain how long a machine was used and the type of products that were being produced during this timeframe. The very best pre-owned equipment was subjected to routine maintenance by its previous operators and has been inspected, tested and certified to operate against specific performance parameters by a qualified, independent technician.

Another consideration resides in how a piece of equipment was stored when not in use, as well as how it was transported from one location to another. For example, a machine that was removed from the line, taken into an unsheltered area behind the plant and left exposed to the elements for weeks or months is more than likely a problem waiting to happen for the next person who uses it.

Buyers should insist on equipment that has been stored indoors in climate-controlled environments. Storing equipment on a skid is an additional precaution that aids in long-term reliability. You should also ask your vendor how they are transporting the equipment, ensuring that it will arrive at your location in the same condition as when it left the supplier’s warehouse.

Finally, don’t forget to check out who the original manufacturer is, i.e. the brand of equipment you are purchasing. Many manufacturers have earned reputations for making high-quality food processing and packaging machines. It only stands to reason that these machines will also provide more reliable service as a pre-owned asset.

When to Consider

There are two situations where purchasing or renting pre-owned equipment in the food processing industry is an ideal solution: One, when a machine is needed in a very short period of time and two, when there is no room in capital budgets for new equipment.

To be sure, business needs can change rapidly in the food processing business. As mentioned above, increases in demand for a new, existing or seasonal product can push production infrastructures beyond capacity, leading to lost sales opportunities. Another common problem involves the sudden collapse of an existing machine that can no longer be repaired economically. Forward-thinking companies also might realize that more updated packaging equipment or advanced processing machines can bring significant cost savings through greater efficiencies.

In all these cases, there is typically a dire need to obtain equipment quickly. And while a new machine can take up to a year for delivery and installation in extreme cases, pre-owned equipment can typically be delivered within weeks. Pre-owned equipment can be rented for short periods of time to meet short-term needs or purchased outright for as much as half the cost compared to new machines. Either option provides companies with high-quality machines that are available in a short period of time, while simultaneously offering a variety of cost effective means to flexibly meet short- and long-term demand.

Long-term Benefits

Redeployment of machinery assets brings capital spending into line and presents the number one long-term benefit to food processing and packaging companies. This is particularly the case for large corporations that have hundreds and even thousands of capital equipment assets in operation at multiple plants. Often, a machine that has outlasted its book value still has a useful service life of many more years. These machines can be redeployed to other locations throughout organizations if there is a program in place that organizes the process. They can also be sold or rented to other non-competing companies, which turns these idle machines into a source of revenue rather than an aging asset with no book value.