Exercise Due Diligence Before Purchasing Used Equipment BY RICHARD ETRA
On the other hand, if you opted for used equipment to test the waters for newer product offerings before invest- ing in costly new machinery, you may be less concerned about the used equipment’s longevity. The same is true if you need it as a stopgap because the new machine you are ordering has an extended lead time and you need something while awaiting its delivery. Perhaps you know that technology is on the cusp of a major development or paradigm shift, and you want to lim- it your investment in soon-to-be obsolete designs. Hence, for the machine you are contemplating, weigh how long you anticipate it will remain competitive versus your stra- tegic time frame. Regardless, will the anticipated quality match customer expectations? A used Saturn Flexo folder gluer may be in- expensive and perfectly adequate for simple printing, but don’t plan on using it for four color process work. I have been approached a number of times by convert- ers who are contemplating the purchase of used equip- ment sight unseen, sometimes already dismantled and in storage overseas. Unless you are budgeting a complete rebuild of the equipment, with rare exception this is a bad idea. Would you purchase a used car, sight unseen, with- out suitable guarantees? Generally, any agreement to purchase equipment should be subject to inspection. Ideally, used machinery should be inspected while in production or, minimally un- CONTINUED ON PAGE 60
In some ways purchasing a used machine is similar to pur- chasing new equipment. Just because used equipment is
presumably less expensive, evalu- ating whether its capabilities match your needs and whether return on investment meets your financial criteria is, nevertheless, still essen- tial. However, in many ways, used equipment needs to be evaluated differently. Are you contemplating the pur-
Richard Etra
chase of a used machine? Let’s assume that you have al- ready determined that additional equipment is required. What’s your rationale for purchasing a previously owned machine rather than a new one? Did a trusty old machine finally succumb to old age, and you need immediate re- placement with the same model that can be placed on the existing rails to minimize disruption? Perhaps you require additional capacity or new features but can’t afford new equipment. In that case you proba- bly require a machine that, although not cutting edge, is a step up from what you have and will be productive and reliable for a prolonged period.
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April 24, 2023
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