Why is there so much interest in second-hand machines and in what circumstances are they particularly suitable for the user? Prior to Resale, the most important trade fair for second-hand machines world-wide, we have asked this question and have come up with some very interesting answers.
There are certainly various good reasons for the purchase of a used machine. One of these is that such machines are more or less immediately available, which is of course important if there is a full order book accompanied by production bottle-necks. In such cases or, if capacity is to be permanently increased, the user often looks for a machine which exactly matches those which he is already using. This has the advantage that such machines can be operated in a way that the operators are already familiar with and for which they have been trained. “It frequently happens that a customer specifically looks for a particular type of machine”, says Heinz-Dieter Broziat, General Manager of HDB Distribution GmbH in Frankfurt/M. The customer already owns various machines of this type, and is only interested in buying an identical one.
Needless to say, the price of a used machine plays an important part. If this machine is in good condition, it provides the required output for a low investment. Particularly in those cases in which the full production capacity of a new machine is not necessarily required, it makes economic sense to buy a used one. This is also true if a particular manufacturing technique is to be used, but only for 4 – 5 hours per day. “In such a case, it is not particularly important at what speed the machine works”, says Broziat. “In this case the logistical problems in the factory are much more important.” The in-house manufacture achieved in this way means that one is not dependent on sub-contractors, and it also means that no technical drawings need to be handed over, which is sometimes not desirable.
It may also happen that companies outsource parts of their production and are able to supply former employees with used machines, to whom they subsequently give production orders. In such cases these employees are more or less dismissed, but at the same time receive a production contract valid for several years, and they are able to buy the necessary second-hand machines very cheaply. Used-machine dealers are of course not enthusiastic about such transactions, but these are nonetheless understandable.
In the last two years used machines have tended to be relatively newer and thus of greater interest. Heinz-Dieter Broziat believes that one reason for this lies in the restructuring of companies. “I know cases in which companies as part of their restructuring have closed complete departments which were established only shortly before”, reports the experienced machine dealer. For example, a few years ago he had to close down a complete manufacturing unit for sheet steel which had only shortly before been set up. For economic reasons a decision had been taken to transfer part of the production to China and another part to subcontractors. The almost brand-new machines were sold at a great loss. “That was of course wonderful for those who were able to buy them”, remembers Broziat . Such planning errors destroy a lot of value. “Due to a change of circumstances” is then very often the polite description for such incompetent planning.
One point which is very important in the decision to buy used machines, is the high and rapid depreciation of new machines. In the case of nearly all capital goods, the greatest depreciation is in the first two years. Whether we are talking about cars or about machine tools, this law holds good and is very often a justification for investing in relatively new used machines (see box).
Let us consider the particular case of large machines such as presses or vertical boring and turning machines, boring machines or large machining centres. Because of their solid base bodies made of cast or forged steel, they have an extremely long life. If the electronic components of such machines only amount to about 15%, then it becomes economic to overhaul such machines every eight years or so. During this overhaul the drive and electronic parts are replaced and guide rails checked and adjusted. This makes economic sense, as for example in the case of a press which costs 1,5 million Euros new. If this press is overhauled and is fitted with new electronic parts and a control cabinet for around 120.000 Euros this is sound economics. Such machines are generally out of the original manufacturer’s guarantee. The retrofitting company will provide a new full guarantee for the work it carries out.
There are thus many good reasons for investing in used machines. This will be demonstrated at Resale in Karlsruhe.
Dr. Rolf Langbein Technical journalist in Rottenburg
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