The equipment and machinery segment is highly profitable nowadays. In 2018, the total amount of heavy machinery exported from the USA reached $141 billion. This article clarifies what you need to pay attention to while buying heavy equipment for your business.
When you want to buy any type of heavy equipment, you have to think about your initial investment. If you’re looking for electric motors or generators, farm and garden machinery, or construction machinery, you’ll find a wide variety of options in our inventory.
Buying used or new?
An arguable question arises whether it is cost-efficient to look for a new industrial vehicle, or is it better to search for a used one? Buying an all-new paver, tractor, off-highway dump-truck or anything else from top-manufacturers like Caterpillar, Komatsu or Volvo can be very expensive. Another factor to keep in mind is how quickly new equipment depreciates. During the first year, heavy machinery loses approximately 30% of its value. At that point, depreciation typically slows and if you keep the vehicle maintained, you can maintain the vehicle’s value.
Another point to consider is available technology. In the case of heavy machinery, they don’t develop as rapidly as in the automotive industry, so there often isn’t a huge difference between a slightly older model and what is currently available.
Buying new machinery also has its own pros and cons. The operation will be problem-free as the vehicle is brand-new. In addition, regulations in different countries provide the possibility of using taxes to your advantage. In the USA, for example, you can write off a fraction of the value of the equipment you purchased at the end of the year. New equipment typically comes with a factory warranty, unlike used machinery. The major cons, however, are the initial financial investment and its depreciation.
Servicing your equipment
One of the key factors in keeping your forklift or any other piece of equipment in good condition is the availability of service. The vehicle will serve you at its best if you maintain it regularly. Finding spare parts for popular manufacturers like Caterpillar, Volvo, or Komatsu may be easy, but what if you bought a less common piece of equipment like a Hyundai heavy cargo-lifter? Maintenance and service centers may be unavailable? Before making any purchases, make sure that you can commit to proper maintenance for your equipment.
Equipment condition
Quite often a vehicle’s lifespan is counted in working hours. These are hours that a vehicle typically can be operated without any trouble, often demarcated in hours per year. A vehicle with fewer logged operating hours will be more expensive than one with more operating hours. The date of production still remains important as well. The overall condition of the machinery is one of the most important factors to take into account. If the equipment has been neglected, the price should reflect that. Well-maintained machinery is highly-valued and is more likely to be expensive to buy. While this cuts into your initial investment, you’ll spend less on repairs and further maintenance in the long run. There are ways to protect yourself from buying faulty machinery, like conducting an inspection prior to placing a bid.
How to ship heavy machinery overseas
Exporting heavy equipment overseas involves some major points to remember before you start shipping. Mini-excavators and other small vehicles can be shipped in a container, but RORO is preferred for heavy equipment. Cleaning the equipment may also be necessary. Lots of foreign customs agencies prohibit importing machinery that is covered in dirt and mud, as it may be carrying invasive organisms. All the necessary export regulations are available on the Bureau of Industry and Security website. If you’re getting ready to ship heavy machinery, our partner can help you with shipping to any destination. You can get started with their guaranteed quote calculator right on their homepage.