Finding the right equipment is absolutely essential when running a manufacturing facility. You want to research the equipment to make sure that you have the ability to operate it, and you should weigh the benefits and risks of purchasing new and/or used equipment.
If you buy new, the supplier may provide training upon installation, a warranty to guard against defects and/or technical support. Used equipment may save money in the short term, but factors such as age and availability of replacement parts should be taken into consideration to determine long-term costs.
These resources will help inform your decision when buying manufacturing equipment and will put you in touch with sellers that can help you find the equipment you need.
Whether your business is new or established, manufacturing equipment is expensive. Unless you have substantial capital, you will need to apply for a long-term loan. When applying for a loan, you will have the choice of securing funding from a private institution or from the government. If you are eligible, government loans may provide better terms.
The U.S. Small Business Administration (SBA) offers the CDC/504 Loan Program for small business owners seeking to secure funding for fixed assets, including equipment.
When applying for the CDC/504 Loan Program, you must submit a loan application, a personal background and financial statement, business financial statements, names and addresses in regard to ownership and affiliations, a business certificate/license, loan application history, income tax returns, resumes, business overview and history, and a business lease.
To see if your company may be eligible for a CDC/504 Loan, click here.
Another resource for financing is Business USA’s Access Financing Wizard. Answer simple questions about your business’s purpose, ownership, geography and industry, and you’ll be referred to federal and local loan programs that apply to your business.
Top Online Marketplaces for Manufacturing Equipment
Once you have secured financing for your equipment and made the decision about buying new or used, you will need to connect with a seller who can provide you with the right equipment. Here are six of the top sites from across the web.
Alibaba allows you to search through new and used manufacturing equipment to buy immediately, or if you prefer, you can post a buying request, where you will input details of your product request and be matched with ten suppliers in 48 hours. Alibaba allows you to screen results through their filter-and-compare box; it also offers a trade-manager tool to communicate with trade partners or to send inquiries. Inspection services are also available, as are e-credit lines worth up to $2 million.
Asseta connects buyers and sellers for the purchase of used manufacturing equipment. Asseta allows you to manage your assets in a simple and easy-to-use tool. Upload your company’s equipment, and Asseta provides free auditing. Asseta’s marketplace and search technology matches buyers with qualified sellers and ensures buyers have a complete understanding of the equipment. They promise transparency, quality, a diverse network of sellers and easy collaboration with executives at your business.
3. Global Sources
In their fifth decade of business, Global Sources is dedicated to matching suppliers and buyers. Their online presence includes the ability to search for products from verified or unverified suppliers, email alerts for new products or industry news, and the ability to view China sourcing fairs and connect with exhibitors online. They also provide sourcing magazines and e-magazines for 15 different industries to help buyers find top products and reliable suppliers, as well as China sourcing reports that give in-depth profiles on Chinese suppliers. Global Sources also provides access to China sourcing fairs and private sourcing events so you can meet suppliers in person.
4. HGR Industrial Surplus
Selling new and used industrial surplus from manufacturers across the country, HGR Industrial Surplus provides deals to those that are interested in purchasing resale items. Every week, HGR buys surplus from manufacturers across the country. They operate a 12-acre showroom in Cleveland, Ohio, while also offering their products online. They have a large staff of sales representatives who can also make the process a lot easier.
5. Equipment MLS
Equipment MLS brings together buyers and sellers of industrial and construction equipment. Their website, which seems overly simplistic at first glance, is easy to operate and less confusing than competitors. They offer new and used manufacturing equipment for machines as well as specialty parts. Their databases are updated directly from dealer inventories.
6. Federal Equipment Company
Providing quality used equipment to buyers for over 50 years, Federal Equipment Company supplies pharmaceutical, chemical, plastics and packaging machinery. A relationship with Pfizer allows them to provide process and packaging equipment. They also claim to be able to provide value-added strategies to help with a buyer’s investment-recovery goals.
Using these resources should help your business find the manufacturing equipment it needs without having to leave the office. But as mentioned earlier, make sure to do your due diligence, and don’t rush into any decision without weighing the costs and benefits.