Services
October 11, 2012
Asset investment recovery is the practice of recovering the highest value of assets no longer needed by a company. The asset investment recovery process begins by identifying idle assets within the organization, then reusing or disposing of the surplus, recouping substantial value in the process.
Every large organization purchases large amounts of assets – from office buildings and manufacturing facilities to the equipment and machinery required for operation. Over time, those assets wear out or are no longer needed where they were originally put into service, which is where investment recovery can add exceptional value for an organization.
Here is some data collected from its members by the Investment Recovery Association that demonstrated the benefits of a professionally managed investment recovery program and the bottom-line value it can provide:
- Corporations in virtually every industry have investment recovery departments, including utilities, chemicals, food processing, forest products, petroleum and gas, metals, government, educational institutions, electronics, pharmaceuticals, transportation, and consumer products.
- Asset investment recovery can save companies an average of $13 million a year; individual companies have saved as much as $150 million a year from the asset management services of investment recovery professionals.
- 70% to 90% of every sales dollar generated by investment recovery goes straight to the bottom line as profit.
- For every dollar generated by asset investment recovery activity, $40 to $70 in sales would be required to generate the same net effect to the company\’s profit.
- Asset categories can include equipment and machinery, manufacturing, repair and operations supplies, obsolete and/or discontinued materials, by-products and waste, buildings, and land.
- Asset investment recovery professionals use a variety of specialized methods and strategies to recover the value of an asset, including redeploying it to another location in the company, returning it to the manufacturer or distributor, selling it, trading it for another asset, giving it away, and paying to safely dispose of it.
EquipNet’s services are designed to help both buyers and sellers maximize their experience while minimizing the time that they spend dealing with idle and surplus assets. EquipNet’s proprietary Asset Redeployment Management System (ARMS™) is a customizable, web-based, software program that enables companies to post, track, identify, and internally redeploy plant equipment that is not being used in its present location.
Additionally, EquipNet will work with our customers who are closing or reducing the size of a manufacturing facility to develop a reconfiguration strategy that maximizes their Return on Assets (ROA). Our Equipment Specialists are experts in a variety of industries and have extensive experience with plant closings and reconfigurations. We can analyze your operations and provide you with an objective perspective, recommendations, and a prospective schedule for change. If you are interested in learning more about asset investment recovery and how it can benefit your business, contact EquipNet.
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