By Adam Covitt, Vice President, Federal Equipment Company
Procuring equipment for your facility is a critical step for any manufacturing organization. Your equipment is the backbone of your entire facility, and how effectively it functions correlates with your business objectives and the overall efficiency of your plant. As all processes stem from your equipment purchases, the ability to select the right equipment is foundational. Since this is such a critical process, it is in a manufacturer’s best interest to turn to an organization that possesses a robust physical inventory to serve as a guide and strategic partner throughout the equipment procurement process.
Strained Purchase Conditions –– Tight Timelines
Equipment procurement often comes into conflict with a constrained timeline. In some cases, market conditions can suddenly create the need for rapid increases in capacity, and the drive to realize that increased capacity before a competitor can have a huge impact on both the overall capital expenditure and the speed to market. This can increase the pressure on an already stressful purchasing situation where small differences in cost and time variables have significant consequences. Secondary equipment suppliers are positioned to alleviate this stress in a way that new equipment manufacturers are not by having inventory on-hand for inspection, ready to be shipped immediately.
Controlling for Delivery
When dealing with new equipment, the average equipment delivery time can range anywhere from six weeks to 24 months. Under pressure to get a production line up and running or replace a broken machine, this can prove extraordinarily costly.
This timeline can become even more extended and expensive when dealing with OEMs outside of the United States. Issues with customs and international tariffs are routine –– manufacturers seeking to buy equipment may not be familiar with how demanding this entire process can be. It is important to remember that all of these logistics must be dealt with before any machine reaches the facility; these are all issues that a manufacturer may encounter before sorting out installation, inspection, operation, handling and routine maintenance.
In contrast, with a used equipment dealer, the average turnaround time on equipment is just one week after payment is received. Rather than having to stall operations and wait for a machine to arrive over a time period that can last up to two years, opting to procure used equipment can guarantee that that critical equipment reaches your plant at the speed of business.
Meeting Your Budget Requirements
Beyond the time aspect of procuring new equipment, there is a corresponding financial constraint that is unavoidable. New machinery is more expensive on a base level. In many cases, there is a balancing act between the costs of an equipment upgrade and the ultimate benefits to efficiency that will result from the improved process, so finding the best price for the relevant equipment may determine the feasibility of the upgrade. Those who work with a secondary equipment provider can expect to save substantially on cost. Procuring machinery from used equipment dealers can save an average of 50–75%, which can mean the difference between procuring an entire production line versus just one machine. Additionally, achieving maximal efficiency from a production line may require sourcing low-cost redundant equipment for critical steps to ensure that production need not halt because of regular downtime or repairs or the use of the critical equipment for another process.
Secondary equipment dealers have access to some of the best-known names in the industry and are able to vacillate between equipment sellers and buyers, easing the transactions on both ends. Working with used equipment dealers is like dealing with an OEM by proxy, but with a reduced installation turnaround time and lower cost, among other things. A long-term strategic partnership can further reduce lead times on equipment purchases –– from months to weeks –– by eliminating the delays associated with qualifying and selecting a new OEM for each specific purchase.
About Federal Equipment Company
At Federal Equipment Company, our showroom floor is just one component of our business that sets us apart in the equipment industry. We are able to implement our expertise in equipment acquisition, which we have been building for over 60 years. We are a reliable equipment partner, as we source the best, most versatile machinery that comes on the market. By doing this, we ensure that the machinery we stock is not only the best value but also the highest quality.
At Federal Equipment Company, we form relationships with our clients to put them in the best possible situation to succeed. We are trusted partners for many reasons. In addition to helping you procure the right equipment, we offer decontamination services, and troubleshooting and training for solid dose equipment. Additionally, our close relationships with OEMs allow our customers to get the most out of their equipment purchase –– including installation, parts and service. Our comprehensive physical inventory eliminates the need to source different pieces of equipment to start a plant or complete a production line –– we likely have what is needed in stock, as our warehouses are home to thousands of machines.
Adam Covitt, Vice President, Federal Equipment Company
Adam Covitt is Vice President, Federal Equipment Company. He has over 20 years of experience in the pharmaceutical and chemical process and packaging industry, with a focus on Investment Recovery and the purchase and sale of high-end equipment to major pharmaceutical sites and contract manufacturers with a global footprint. Mr. Covitt earned a bachelor’s degree from Ohio University, Athens, Ohio.