Our other sites
Today's newsletter | Register | Subscribe | Feedback

Second hand machinery sales up on auto boom

By Anthony Clark
Posted 14 August 2012

Long lead times for some types of machinery are driving tier 1 automotive suppliers onto the second hand market, according to David Heaselgrave, marketing and commercial director for Worcestershire-based injection moulding machine supplier Plastic Machinery Sales.

“There’s a massive shortage of equipment for automotive suppliers,” explained Heaselgrave, whose company sells both new and second hand machines. “Tier 1 moulders are fighting over old kit at auction despite it being costly to run and not fully up to the job,” he added.

An industry veteran, who wanted to remain nameless, agreed: “I have heard that some suppliers of larger machines are struggling with orders. Part of the problem is that automotive manufacturers make their decision incredibly late.”

Engel UK managing director Graeme Herlihy also concurred, in part: “It’s the speed of the automotive industry that’s the problem,” he explained. However, he pointed out that “lead times on machinery are not as bad as they were”.

“Big tier 1 automotive suppliers talk about going second hand but generally can’t find the equipment they need – they have very specific requirements.”

Herlihy added that the pace of the recovery initially left people scrabbling to keep up. “The speed out of the nosedive took people by surprise,” he said.

“But delivery times are now back to where they were. There’s a six to nine month lead time for machines over 2,000 tonnes.”

Mike Bate, managing director of Krauss Maffei UK, said he’d not heard of any problems with tier 1 automotive suppliers. “Everyone leaves things to the last minute, but that’s nothing new.

“We’ve had a fantastic year to date, mainly on the bigger machines, on the back of growth in the automotive sector.”

Bate said that orders were still arriving and that there were no signs of the automotive slowing down any time soon.


Comment on this article.

Comments:

Maybe another factor for the increase in 2nd hand sales is the demise of Birkbys Plastics. A large amount of automotive business was distributed amongst the surviving UK moulders (sadly some has also gone abroad). 70 moulding machines from 25 to 2500 tonnes have been sold off, along with the ancillary equipment. Birkbys had a full order book when it went in to administration, but had suffered from long term lack of investment and poor strategic management. The management had failed to capitalise on the non-automotive opportunities needed to generate cash reserves. The separating of Birkbys business from the 20 acre site (former owners becoming the landlords) removed the safety net from the business.

- 26 August 2012 - ex Birkbys

[ Back ]



TOOLBOX

ALSO IN THIS SECTION
MOST POPULAR STORIES
Site Index [ + ]
Site Index [ - ]
Home:  PRW.com | Contact editorial | Contact advertising | Features List 2012 | About us
End Markets:  Automotive | Packaging | Construction | Medical | Consumer Products | Rubber
Processes:  Injection moulding | Blow moulding | Extrusion | Thermoforming
Supplier News:  Machinery | Materials | Recycling | Moulds | Design
Polymer Prices:  LME prices | Market outlooks | Resin selector
Industry Issues:  Environment | Regulation Competitiveness
Plastics Knowledge:  Knowledge Bank
Comment:  Champ Chat | Clark's Place | Editorials | Business features
People:  Movers & Shakers
PRW Business Directory:  Directory
Classifieds:  Jobs | Classifieds
View:  Mobile | Desktop
Our Events:  PDM | Conferences
Industry Awards:  Industry Awards
Diary: Diary
Advertise with PRW
Subscribe:  PRW print | E-mail products
Reprints:  Reprints
List Rental:  List Rental
Crain Communications:  Crain Communications | Crain Publications

Entire contents copyright 2013 by Crain Communications Inc.
Plastics & Rubber Weekly and PRW.com are published by Crain Communications Ltd (registered in England & Wales No. 01576350).
Registered Office: 100 New Bridge Street, London, EC4V 6JA, United Kingdom.