EQUIPMENT solutions
Liquidity
How the secondary equipment market helps small and medium manufacturers accommodate their production needs.
L
iquidity Services provide industrial solutions across food service equipment and machinery assets and their recent case study with a UK-based confectionery manufacturer shows real value in asset disposal and convenient recycling methods
It is hard to deny the worldwide love and popularity of chocolate and the brands which produce them. However, with consumer taste regularly shifting to new favourites, manufacturers have to change to meet their customers’ needs. Total chocolate consumption reached an estimated
7.7 million metric tons in 2019 (Statista, 2019), with a total cocoa and chocolate global market valuation of $49.4 million (MarketWatch, 2019). Consumers’ growing affection for chocolate confections, particularly healthier and higher quality products, requires manufacturers to assess whether their current equipment can fulfill future market demands. Occasionally, this assessment leads companies to sell some machinery and even close manufacturing sites, shifting production elsewhere to growing markets like the Asia-Pacific region. If not properly handled, relocation can become an enormous expense, both in time and investments. That is, it can be costly without the proper experience, or guidance. Take, for example, a major confectionery manufacturer with worldwide distribution including some of your favourite chocolate-based treats needing to replace a cereal bar line in the United Kingdom to accommodate the changing market – and it only had six months to do so. At first, the UK-based onsite management were unsure of how to clear space to make room for the new confectionery production line. Liquidity Services team taught the site managers different options for asset disposal, from internal redeployment and recycling – which would have cost the client an estimated £300K in removal fees – to selling on
Go-Dove.com to relevant confectionary buyers.
With guidance from the Liquidity Services’ team, onsite management chose to sell via online auction, while offering line parts to other sister facilities if they could present an immediate business case for it. That way, onsite management knew redeployed equipment would be used, rather than hoarded for a “just in case” scenario.
After the Liquidity Services team provided buyer inspections and full onsite support cataloguing, the UK site managers offered auction buyers a fully working line that sold for six times what the line’s parts alone would have recovered.
Ultimately, the UK site sold 100% of its available assets in a single auction on
Go-Dove.com and recovered £900K in cash to reinvest in machinery upgrades – with buyers paying for removal. To see what confectionary manufacturing equipment is on the market, visit
Go-Dove.com.
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Kennedy’s Confection January 2020
KennedysConfection.com
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