Chemical equipment asset management may offer an alternative to scrapping that yields a better return on an organization’s investment. In today’s fast paced world of technology, chemical equipment can quickly become obsolete. Manufacturers must upgrade equipment to remain competitive, leaving unused machinery idle.
Changing business objectives and consolidations can lead to surplus equipment occupying space within the facility. Businesses frequently face the challenge of disposing of obsolete equipment, relinquishing large capital expenditures to scrap. Limited access to resources can make it appear there are few options for disposition. Additionally, declining scrap metal prices further inhibit the company’s ability to recapture their investment. An asset management services provider offers programs to enable businesses to protect their capital. EquipNet is the world’s most comprehensive surplus asset management company and can assist in recovering capital from unused or unwanted chemical equipment.
Declining Scrap Metal Value
Scrap metal prices have declined to the lowest they’ve been in 15 years. Nickel has fallen from $12.50 per pound to approximately $3.00 per pound in the past five years, and copper has dropped from $3.75 per pound to just below $2.00. Other metals such as iron and aluminum have undergone price reductions by as much as 75 percent over the past 18 months. This equates to substantially lower returns for organizations that opt to recover their investment through salvage.
Valuation of Chemical Equipment
A valuation of the chemical equipment will provide insight into how it may be dispositioned to yield the highest return. Chemical equipment is appraised differently from other assets, such as real estate or personal property. It is subject to market volatility as well as other factors such as removal costs. EquipNet offers expert appraisals of chemical equipment and has an extensive database of recent private and auction sales to reference for accurate valuations. Our appraisal specialists have more than a decade of experience in the industry and have provided valuations and consultations for a wide range of chemical manufacturers, from small companies to global organizations.
Strategies for Recovering Equipment Investments
Once a valuation is performed, the asset management specialist can provide a recommendation for the disposition of the chemical equipment. One option may be redeployment of the equipment in an area where it may be more profitable. EquipNet’s proprietary software enables businesses to track and manage their assets to minimize underutilized resources. Alternatively, the chemical equipment may be sold to fund more efficient equipment. EquipNet offers global consignment services which include a listing featured on the EquipNet MarketPlaceTM or in an EquipNet Auction event. They will move and store the chemical equipment to an attractive facility where it is staged for viewing by prospective buyers. These options may offer a substantially higher return on the organization’s investment than scrapping.
EquipNet is an asset management services provider that offers a variety of programs designed to preserve capital and make the most efficient use of company resources. We provide consultation for the disposition of chemical equipment to enable businesses to recapture the maximum amount of their investment. Visit our website at EquipNet.com for more information on asset management.