If you’re a buyer in the mining, construction or the agricultural world you’ll want to read this article. You’ll already realise most of the factors that govern prudent acquisitions. However, it might surprise you just how much you’ll benefit from the current economic climate, even if that might seem counter-intuitive.
Here’s why there’s no better time to invest in mining, construction and agricultural equipment than at the present moment, particularly via auction:
Economic conditions are currently placed to offer vast savings on industrial machinery and equipment. Prices have almost halved on Australia’s mining fleet across the board. This is according to industry experts Ernst Young (as reported by ABC News Online 2016).
Widespread mine closures have been one of the significant factors in a massive drop in the ‘Yellow Goods Index’. This refers to the monetary value of mining equipment as a theoretical basket of goods – similar to the ‘Consumer Price Index’.
The sheer outlay that comes with buying heavy-duty mining equipment and maintaining machinery is one of the number one costs associated with the industry. But what if you could find other ways of acquiring safe and reliable equipment at cost effective prices while there is still the opportunity to do so?
This is a ripe opportunity for companies, investors and resellers. Mining equipment such as dozers, excavators and trucks are now at decade low prices. Those that are prepared to wait for the inevitable upturn are positioned to make unprecedented returns on investment in the future.
It’s a waiting game but that’s often the drill in business – knowing when to make an investment and balancing expected gains against risk. A surplus of mining equipment is currently available to those who are willing to capitalise on what are essentially bargains of the large-scale variety.
It is not only local buyers that are taking hold of the opportunity, with companies in the Middle East and Africa taking advantage and making prime acquisitions in 2016. There’s a sense of urgency in our local market not to let these opportunities slip away to overseas buyers.
The market for second-hand equipment is at over-capacity. This means that purchasing brand new equipment in this economic climate would almost be akin to insanity – given the supply that is currently in circulation. Buying salvaged equipment in the far smarter method.
Auctions offer the ability to acquire goods at the winning bidding price. Surplus mining equipment and parts are made available for sale to the public and to company representatives. Often goods are time sensitive. There is a dire need for sellers to recoup costs, bringing the price down to rock bottom when the hammer comes home.
ONLINE AUCTIONS OFFER THE PERFECT WAY TO PROCURE HEAVY DUTY MINING AND RELATED INDUSTRIAL EQUIPMENT.
CLICK HERE TO ACCESS MORE DETAILS & CURRENT MINING, CONSTRUCTION AND AGRICULTURE AUCTIONS AND, STAYED TUNED FOR OUR NEXT BLOG IN THE SERIES: HOW TO DO BUSINESS ON A BUDGET.