6 Reasons to Sell Unused Industrial Equipment & Process Equipment

Date Published:   04/07/2020

Whether you’re planning to upgrade your production machinery, downsize your operation, close a plant, or get rid of excess inventory, one thing is certain; you will end up with unused equipment. Whatever your situation, there are several great reasons to sell surplus industrial and process equipment, and a liquidation service may be your best option. Selling your chemical or industrial processing machinery, production lines, or entire plants to used industrial equipment dealers is often preferable to private-party sales or simply junking it.

Professional surplus equipment buyers allow you to sell large quantities quickly, alleviating you of the hassle involved in finding customers, negotiating terms, storing equipment, and arranging deliveries. Here are a half-dozen reasons to sell to a dealer:

1. Cash in Hand

Reputable equipment liquidation service providers can buy single pieces of machinery, truckloads of components, or entire plants. Selling industrial equipment to a dealer is easy, fast, and puts cash in your hand quickly. The sale of your surplus equipment recoups some of the capital you originally invested, giving you needed capital to invest in other areas of your business. Your return will vary depending on the type of equipment you have to sell, its age, and condition. So why let your unused process equipment continue to depreciate? Get a free quote today, sell your idle equipment, and get paid top dollar for it.

2. Free Up Wasted Space

Unused processing equipment takes up a lot of room, occupying real estate that could be used for finished product inventory, shipping and receiving, production staging, and other mission-critical items and tasks. These large pieces of equipment and machinery are often encumbered with cords and hoses that pose tripping hazards and sharp edges that can injure workers and damage other, more useful equipment and raw materials. Holding onto excess inventory costs money in several ways:

  • Carrying Costs – Warehousing is expensive, whether you rent space at a remote location at rates up to $7 per square foot, or pay for utilities, overhead, and personnel to store it onsite.
  • Insurance – The more stuff you have, the more it costs to protect against loss, theft, and vandalism.
  • Obsolescence – The longer you hold onto equipment you don’t use, the greater the risk that it will depreciate in value.
  • Inefficiency – Working around unused equipment costs warehouse workers time. They have to store parts wherever they can find room.

Take back control of your warehouse or workspace by getting rid of the equipment you no longer need.

3. Lower Maintenance Costs

When you sell industrial equipment, you also rid yourself of high maintenance costs. Even if you have decommissioned the equipment, you still have to keep it in working order if it is to retain its value or in case it must be pressed back into service as a replacement or in a new or reopened plant. Labor, parts, lubricant, cleaning, and other repair and maintenance costs add up quickly, especially when the equipment isn’t at work generating revenue. Dealing with a surplus equipment buyer can get these expenses off your books, and put your well-paid maintenance crews to work taking care of equipment that’s actually productive.

4. Environmental Stewardship

Taking care to dispose of used components is the ecologically responsible thing to do. Rather that consigning your equipment to a landfill, you can sell it to an industrial equipment dealer who will see that it is recycled, repurposed, and reused, reducing the need to manufacture new equipment. Keeping the metals and electronics out of municipal dumps eliminates health and environmental hazards. So why not make the environmentally friendly decision to resell and repurpose the equipment you will no longer use? Fulfill your company’s social responsibility commitments and establish your company as an industry leader in the going green movement.

5. Business Contacts

Equipment liquidation services make strong business contacts and trading partners. When you are looking to sell your equipment, you establish relationships that can pay off handsomely down the line. When you need to buy or sell industrial equipment in the future, you know who to contact and who to trust. Additionally, when you find a reputable surplus equipment buyer, you can count on them to be on the lookout for specialty or hard to find equipment you need. Finally, your dealer can put you in contact with other surplus equipment buyers and people in the industry, with whom you may form mutually profitable arrangements.

6. Tax Benefits and Decommissioning Credits

The profit you generate by selling used industrial equipment is taxable, but the net tax benefits almost always outweigh the negatives. In many cases, while your sale to a used industrial equipment dealer may approach market value, it is likely to fall short of book value. You can claim a write-off for the difference between the price you get and book value. You may be entitled to other tax incentives as well, just ask your accountant. If you have taken a reserve for the cost of decommissioning equipment and closing plants, selling to surplus equipment buyers offers the opportunity to tap into those funds. By allowing you to reverse those reserves, an equipment liquidation service essentially pays you to regain the money you put in escrow for these purposes.

Given all the financial, efficiency, and intangible benefits that go along with selling unused equipment to a surplus equipment buyer, there is little reason to hold onto industrial and process equipment and machinery.  

Phoenix Equipment prides itself on fair dealing and building long-term relationships with clients. As the country’s leading buyer and seller of used industrial and chemical processing equipment, Phoenix offers a one-stop solution for liquidating single machines or entire production facilities. We can handle the entire transaction, including decommissioning, dismantling, and transporting equipment across town or around the world. In addition to outright purchase of plants and equipment, we can broker your sales as your marketing agent or liquidation or auction manager.

To discuss the selling option that works for you and how you can earn cash for your surplus equipment,contact Phoenix today.

The Phoenix Difference

Phoenix Equipment has been the trusted experts for used process equipment and complete chemical plants for over 60 years. We combine an expansive equipment inventory with industry leading knowledge to help you find what you need.

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