Can the sale of used machines go against the general market trend? The Resale Trade Fair in Karlsruhe, the world’s biggest fair for used machines, may answer this question. The number of exhibitors and of visitor registrations from abroad give the organisers grounds for optimism.
“Many cheerful faces could be seen among the 504 exhibitors at Resale 2008 in Karlsruhe. There were 10081 visitors from 118 countries, an increase on the previous year”. This was how the organisers’ final report on Resale began last year. In the meantime the industry is confronted by a worldwide recession of a depth not seen for many years. This naturally poses the question of what effects this recession will have on Resale 2009. When the Fair, which lasts from 22nd – 24th April opens its doors, organisers and exhibitors expect a signal concerning the further course of economic development.
Unless there are significant changes in the situation between now and the beginning of the Fair, the organisers will continue to be cautiously optimistic. More than 500 exhibitors from 21 countries are expected. “Many companies have reserved larger spaces than in the previous year and are showing an even wider range of products for all sectors”, reports organiser Florian Hess (see interview on page 24) “We are again expecting over 10,000 visitors from almost 120 countries”, says the Managing Director of Hess Gmbh from Weingarten/Baden. There is particularly keen interest from up-and-comimg markets such as Africa, Asia, the Middle East, Ukraine or Russia.
Jens Nagel is also optimistic: “The demand from EU countries for used machines and plants will probably also increase in 2009.” The countries in Central and Eastern Europe in particular find themselves in a difficult situation, the Managing Director of the Federal Association of German Exporters (BDEx) points out referring to the effects of the financial crisis. On one hand, the newer members of the EU have to renew their plant. This is necessary in order to keep up with EU standards. On the other hand, financing this modernisation is at the moment extremely difficult. “Used machines thus offer a welcome alternative”, claims Jens Nagel. This statement is also partly true for the older EU countries Spain, Greece and Portugal, but also for the candidate countries in the Balkans and for Turkey, confirms the BDEx Managing Director.
As the trade in used machines is and has always been highly export-oriented and is focussed on the world market, the motto has to be: ”Be present!” This is also true for the members of the Trade Association of Machine and Machine-Tool Wholesalers e.V. (FDM) in Bonn. “To this end Resale, as the biggest international trade fair for used machines, is the best instrument”, argues the FDM Managing Director Kurt Radermacher (see interview on page 32). For the used-machine dealers belonging to the trade association the Fair is a must. Once again, used machines of all types required by the metal-working, woodworking and plastics-working sectors will be shown.
In addition, the European Association of Machine Tool Merchants (EAMTM) in Bruxelles considers Resale to be the most important meeting place for its international members. “For many years, the EAMTM has had a sophisticated internet platform showing currently more than 20,000 machines”, emphasises President Jan-Reint Voortman (see interview on page 28). “However, we consider attendance at this fair to be the only possibility of maintaining personal contact to all important suppliers of used machines”. Direct dialogue between the partners in the market is, especially in times of crisis, a signicant advantage of Resale. “The trust established here between the market partners is the basis for all subsequent business – including business in the virtual world of the internet”, says the Chairman of the Trade Association and Resale-Exhibitor Voortman.
Financing the purchase of machines is, because of the reluctance of banks to give credit, a problem which worries many potential customers. The “sale and lease back” model offered by Maturus Finance at Resale Fair is an interesting and imaginative opportunity. This finance house was founded in 2005 by the valuer and auctioneer company ABLNetBid and partners. “Assume that a company needs liquidity, but the bank is not prepared to give any further credit”, says Resale exhibitor Clemens Fritzen, giving an example. “This is where our experience in valuation comes into play”, explains the Director of ABLENetBid. “We establish the market value of the plant, which in general is significantly more than the book value.” After this valuation, the machines and plant are bought by Maturus at this market value. In this way the seller receives his required liquidity. By means of a leasing contract with a length of up to 60 months, the company can continue to use the plant for its production. Because of the current difficulties in obtaining conventional credit, this offer from Maturus has attracted a lot of interest.
Apart from international demand, there is also a lot of domestic interest. The Deutsche Bundesbahn is well aware of this and will be offering special prices for visitors who come by train. For example, fair visitors must only pay 99 Euros for a second-class return ticket, irrespective of where their journey starts within Germany. A first-class return ticket costs 159 Euros (Hotline 01805 31 11 53 – reference Resale). This offer is available from 20th – 26th April 2009.
Further information: www.resale-germany.de
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