The truth is that process machinery and equipment aren’t cheap but are a must-have in some industries. Starting a business or replacing old machinery with new equipment may be the preferred option by many. It gives confidence for a longer lifespan, lesser cost on repairs and efficiency, and therefore improved productivity. However, there are times when buying new equipment isn’t an option, maybe due to funds or business needs at the time.
Fortunately, used equipment can provide businesses with what they need without the high cost of acquisition. But, before you decide to opt for used equipment, you must evaluate the benefits and disadvantages that used equipment carry.
Pros Of Used Process Equipment
Apart from used process equipment being relatively cheaper, it can also benefit a business in several other ways.
- Availability And Accessibility
Among the biggest hurdles that come with purchasing new equipment is its availability when you need it. It can take manufacturers a long time to fulfill orders depending on the type and complexity of the required process equipment. It can also happen that the exact option you require has been altered or is no longer being manufactured.
However, the online marketplace is abuzz with used processing and packaging equipment and other types of machinery. There are numerous options, models, brands that are available as soon as you need them. This means it’s possible to get the specific model you need quicker, even when the original brand is no longer manufacturing it.
- Works Best for Short-Term Use
When you only need to use process equipment for a short period each year for seasonal process demands, going for used machinery can be the best option. Although new equipment has a longer lifespan, when its use is infrequent, it’ll take you longer to make a profit on it. While it’s possible to lease or rent equipment when you need it, having your own, even used equipment is more convenient. Besides, when you can be renting it out, it’s not in use, or eventually, sell it when you no longer need it.
- It’s More Affordable
Among the top benefits of purchasing used process equipment is that you will get your equipment for far less cost than you’d paid for new machinery. The business may not be in a position to raise the amount required for new equipment, and so the used equipment provides an affordable option.
However, you need to carefully compare new equipment prices against the used counterparts before you purchase. Confirm the exact condition of the used equipment and its market value while considering its age and any mechanical problems it might have. You may spend less purchasing but lose much from downtimes and repair expenses due to breakdowns.
- Higher Return on Investment (ROI)
Because used process equipment comes at a lower price, you may get a higher return on investment. This happens because you’ll have used less money to generate the same profits as the business would have made with new machinery. Also, if you’re just starting, good used equipment will lower your startup costs significantly, allowing you to recover your investment faster. This gives your startup a better chance of succeeding.
Cons Of Used Process Equipment
The benefits of purchasing used process equipment are plenty, but there are also some downsides as well that you need to consider.
- You May Not Know the Exact Condition of Equipment
Purchasing used process equipment provides a real risk of buying damaged or defective equipment. Since you can get used equipment from any source, the seller may misrepresent the condition of the equipment. You may only realize that it’s defective when you start using it or that it’s not compatible with your work technology infrastructure. If you buy the equipment from a private seller and discover it has significant flaws, it may not be possible to get a refund.
That also means going back to the market to look for another piece of equipment, short on cash. If you were to dispose of it, it might be at a lower price than the purchase price. Besides, it would’ve cost you a lot of time, effort, and other resources to set it up.
- Low Efficiency And Productivity
The used equipment may still be in good condition, but the fact is, it has been used in the past, thus, lowering its efficiency. Process equipment comes with a lifespan, and the more it has been used, the shorter its lifespan gets. This means that its efficiency can never match that of new machinery. Also, it has a higher risk of breakdowns and, therefore, more downtime.
This means that although it may be easier to source and purchase used equipment, its performance may not be as speedy as you would like it to be. This isn’t to say that it’s entirely impossible to get efficient used equipment, but older equipment may pose a higher risk of these problems.
- Difficulty Sourcing for Parts
Another issue with used process equipment is the availability of spare parts. With new equipment, you know you can go back to the manufacturer for parts. However, sourcing for parts for used machinery and especially one that is no longer being manufactured can be a huge challenge. Equipment parts break down or wear out all the time and require replacements. Lack of spare parts can halt production and cost your business.
- Limited Or No Warranty
Unless you find equipment that has only be used for a very short period, there’s a high likelihood that the manufacturer’s warranty on the equipment has expired or is significantly reduced. While there may be a short warranty from used equipment dealers, it may only cover only minor issues such as shipment defects and workmanship errors.
However, with private sellers, there may be none if the original manufacturer’s warranty has expired. These can leave you exposed to losses should the equipment have severe defects. But a reduced warranty is the price you pay for purchasing the equipment at a lower cost.
Conclusion
If purchasing used equipment is your preferred option for any reason, it’s possible to get quality equipment if you do your research well. However, it requires good research to ensure that you end up with sound equipment suitable for your business needs.
You need to be cautious about the quality of equipment before you commit. Defective equipment will derail your business goals and slow your production process. It’s also recommended that you purchase from reputable and trusted entities instead of individual private sellers.
Also Read: 5 Steps to Effectively Diagnose a Hydraulic Problem
