Used Machinery Drives Bottom Line

In today’s global economy, owners and leaders of manufacturing organizations grapple daily with productivity, utilization, cost, process and product improvement, and a myriad of other KPI’S that drive top line revenue and bottom line profit.

Whether you are a custom job shop that needs machine tools refitted and ready to produce specific products to blueprints or CAD programs, or a high-volume continuous feed facility that needs additional capacity to meet demands, used equipment is a viable option.

As the demands of industry have changed, so too have the services and alternatives of the used machinery industry transformed to suit the new economy. With automation and consolidation taking root, there are more diverse, modern machine tools and production equipment currently available in the market than at any other period in history.

Even if your business is metal working, mining, food processing, woodworking, custom fabricating, or designing & building, a used equipment specialist can supply used equipment from his own stock or within his network. Working for your benefit, the dealer is not restricted to any particular brand and can source equipment to exactly meet your needs on your schedule.

Cost Implications

Used equipment is 2/3 of the initial capital cost of new equipment. This factor affords a faster ROI and reduced capital outlay, which permits decision makers more flexibility to approve their projects. This flexibility can be a differentiator if your organization is in a cyclical market and capitalizing on a market upswing. Conversely, in lean times, lower capital investment allows projects to move forward, preparing the organization for reduced costs and increased production for the inevitable market upswing.

Specialized and complex newly manufactured equipment may have lead times up to 18 months. Even the most complex used equipment can be decommissioned, shipped, and reinstalled in ½ that time frame. This provides distinct market advantage compared to your competitors, as they are at least a year behind in catching up to your strategy.

Risks: New vs. Used

New turn- key equipment, even with performance guarantees, has a startup curve. This typically manifests itself in lower-than-projected production rates, product quality issues, engineering corrections, maintenance breakdowns, and possible schedule delays as the OEM and purchaser work to achieve equipment design capability.

Used equipment, particularly if application is similar to existing assets, provides a familiarity and comfort to duplicate and supplement current production. Adjustments, operations, and output results are more predictable, thus inflicting less disruption to the organization and, more importantly, the bottom line.

Expanding Current Production or Innovating New Product

Are you thinking of expanding production capacity or have an older machine that was/is producing admirably and want to duplicate the operation? There are numerous benefits to used equipment, such as standardization of parts and maintenance, experienced trained operating personnel, consistent and uninterrupted quality to your customer, and known production rates and cost structure.

If the organization is adding a new process or product line, purchasing used equipment that may be demonstrated “under power in place” enables the purchaser to anticipate early results during start up processes. The desired production results are much more likely to be duplicated if care is taken during decommissioning and reinstalling.

How Old is Too Old

Upcycling integration of an older, used machine has never been easier or more cost effective. Electric controls are inexpensively upgraded with affordable AC/DC drives, remote I/O, and MMI control panels for integration within your standardized system.

Mechanically, distribution houses can provide bearings, power transmissions, and hydraulic components required. With the advent of 3D printing, virtually any part can be prototype reproduced, ensuring ongoing equipment serviceability.

Older machines were manufactured with more robust materials and can withstand operation above the design capacity. This becomes critically important if the organization is in sold out conditions and the used equipment to be purchased supplements or improves the throughput constraint.

What to Look for in Used Equipment

Initially, structure is the most important: The casting, frame, and base must be solid and intact with no cracks or repairs. This ensures a solid platform that reduces flexure. Without a solid structure, the project is compromised. This can be observed visually, and on critical structures, NDE testing (UT, Mag, and X-Ray) may be performed.

Look for intact control panels: Even dated relay logic can be utilized initially for testing, or even operation, if the budget is severely limited. The key is operational safety of breakers and disconnects, reasonable wiring marking and layout for troubleshooting, and eventual upgrade. If controls are more modern (PLC/MMI/Thyrister drives), look for name brands that are currently supported by OEM or your local electrical distribution house. The more compatible these are with your current control scheme throughout your facility the better. Typically, obsolete OEM unsupported PLC parts are available through used dealer networks to support the system until upgrades can be executed. If high voltage components are present, infrared analysis may be performed to identify loose connection and unbalanced loads.

Mechanically inspect the power transmission components (gears, drive shafts, bearings, and pulleys). The critical objective is to determine that minimal attention is required. Gears seldom are an issue, but bearings either through use or idling can be damaged. Bearings, especially large bearings like those in a Mill Duty gearbox, can be expensive. If machine is under power, vibration analysis and a boroscopic inspection can be performed to inform of mechanical condition. Tribology (oil/lubrication and bearing analysis) can be performed to determine if unusual spalling or wear is present. Hydraulics can be visually inspected and operated to ensure proper operation.

Driving Bottom Line

Monetary results in a manufacturing facility are determined by the ability to deliver the quantity of product that the sales force can successfully close. Profit, then, is the difference between the selling price and the costs incurred to manufacture that product. Used equipment can significantly reduce capital costs and lead times, as well as increase throughput and expand product offerings. This drives top line revenue and bottom line profit.                                                                                                                  

Charles Lamb has constructed and operated Manufacturing Facilities Globally, and is President Of Mill Machinery brokers of industrial equipment and facilities.