by AaronEquipmentCo2. September 2021 15:45New process equipment can have long lead times. When companies have large capital projects it is not unusual to purchase new equipment to meet construction and production deadlines.
If the project is cancelled or if the process significantly changes, stopping the equipment purchase may not make economic sense. If this happens the company now has an expensive and unproductive asset.
This scenario recently occurred with one of Aaron Equipment Company’s clients. After a project was cancelled, the company was left with a multi-million dollar spray dryer stored in a warehouse. After several years, the company realized the asset could not be repurposed in any of their other facilities. They also recognized the large storage and opportunity costs associated with the status quo.
Our customer engaged us to find a customer for the dryer.
Aaron Equipment marketed the spray dryer worldwide and was able to close a sale for a high six figure price within 10 months. This is a very short time given the engineering and commercial issues.
This success demonstrates Aaron Equipment’s ability to understand the customer’s goals and produce results.
Aaron Equipment typically purchases equipment for its own account but also provides the following services:
- Equipment appraisals
- Auction services
- Consignment services
- Equipment financing
- Asset management
Learn more about Aaron Equipment Company at http://www.aaronequipment.com.
