Used machinery market Corona is driving digitization in used machinery trading
Germany — Plant closures and project cancellations result in more used machinery being sold. At the same time, the high market momentum in times of crisis require flexibility in the planning of production capacities. When new projects are confirmed at short notice, new production capacity is needed quickly. The advantage of direct availability increases the demand for used machines.
Currently, two crucial questions arise for machine users: How can I sell my machine at the best possible price and how can I quickly find a suitable machine to expand my production capacity?
The market with used metalworking and plastics processing machinery, whose global market volume is estimated to be in the double-digit billions, is changing. More and more local and stockholding dealers are withdrawing from the business because they can no longer ensure the necessary global distribution channels or no longer withstand the pressure of capital requirements. It is also becoming increasingly difficult for long-established traders to find suitable successors. This is currently leading to consolidation in the trading environment. Dealers who increasingly rely on the online channel and global sales will be among the winners in the booming used machinery market.
One of these used machinery dealers is, for example, the Gindumac Group, which has digitized and globally positioned its trading business with its transactional machinery platform since it was founded in 2016.
“Important for us is to offer sellers and buyers the optimal sales and procurement channels. Through our online platform, we generate the highest possible reach and assortment widths here. For sellers, we offer global marketing at the best possible price or a direct purchase option for planning security. Buyers will find a broad assortment including an all-round carefree package with transparent documentation and worldwide logistics services,” says Benedikt Ruf, Managing Director of the Gindumac Group.
In the 4th quarter of 2020, the company was able to increase the machinery value offered on the online platform by 117 % compared to the previous year, while maintaining the same marketing investment.
“We see the doubling of the machinery value offered in Q4, 2020 as a confirmation that the used machinery market is moving more strongly towards global online trading. That is why we always focus on maximum and global online reach in our marketing. When we market a used machine via our transactional online platform, we are also listed on all relevant advertising platforms worldwide. The current development shows that the future of the used machinery trading can only take place digitally and globally,” adds Janek Andre, CEO of the Gindumac Group.
It is to be expected that the Corona crisis will continue to drive the digitalization of the used equipment trading in 2021 and that the trading structures will undergo a lasting transformation. In this process of change, the used machinery market will take on a new relevance for manufacturing companies. The purchase and sale of used machinery opens flexible planning and concrete expansion options for production capacity as well as new opportunities for more economical liquidation of existing machinery.