Q) How is demand in the UK and across Europe for Surplex’s services and for auctions in metal-working machinery?
Our Country Manager UK Antony Redd said: “Due to the economic recession in the UK and high interest rates on borrowing money, lot a lot of companies cannot afford to buy new machinery and are still turning to the used market. We have a very large industrial machinery market here but also a very large, well-established competition.”
Q) How does the number of industrial auctions you are holding now, compare to say 5 or 10 years ago?
The number of industrial auctions we have organised has increased significantly in recent years. In 2014, for example, we held around 100 auctions, while in 2019 we already held around 550 auctions. In 2023, there were almost 1,000 auctions, and as of today (11 July) alone, we have already conducted or are in the process of conducting more than 500 auctions this year.
There are two main reasons for this upward trend in the auction business: Firstly, more and more companies are recognising the value of selling decommissioned equipment on the used equipment market for both financial and sustainability reasons. Secondly, the attractiveness of auctions has also increased, as they offer buyers the opportunity to pick up bargains.
We experienced a boom during the coronavirus pandemic in particular, as the uncertainty of the situation and the destruction of supply chains had a massive impact on the new machinery market. Long delivery times and high prices for new machines prompted many to switch to used machines.
Q) Are there any emerging trends that Surplex seeing in the marketplace?
Surplex is currently experiencing considerable movement in the automotive industry, driven in particular by the transition to electromobility. We can currently offer many machines that have been discarded by production facilities and suppliers due to the change in drive type.
In addition, the pressure from the Asian car market is making itself felt in Europe, which is making the economic situation of car manufacturers and suppliers more difficult. There are insolvencies and restructurings here and there. These factors are leading to an increased availability of machines on the used machinery market, a typical development in times like these.
Although the general economic situation is moderate and inflation is high but falling, there is currently little willingness to invest, especially in higher-priced machines. A slight decline in demand is therefore being met by a large supply.
This is leading to slightly falling hammer prices, which is currently making the market a buyer's market. Interestingly, sales of smaller machines remain stable, which indicates that the used machinery market is firmly anchored in the industry's considerations.
Q) What particular metal-working machinery is Surplex seeing rising demand for?
No particular category of machine is currently in high demand on the market for metalworking machinery. Demand is rather orientated towards the price range of the machines. High-quality and expensive individual machines are currently less in demand, which is due to a generally lower willingness to invest.
By contrast, auctions in which entire businesses, workshops or production halls are offered with all the trimmings - from machines, forklift trucks and transporters to workshop equipment and accessories - are doing particularly well. At project auctions, all auction items are offered at one location and by one seller. Here, interested parties can find several suitable machines without having to search for them individually.
Q) Is there still a role in engineering for older manual lathes and technology that was first launched 20-30 years ago?
Machines often have a very long service life: for example, lathes can last around 30 years and woodworking machines up to 40 years. Their longevity and reliability depend above all on good maintenance.
Our credo: There is a suitable buyer for every machine.Just because a machine has been decommissioned in one place, it may still be of great use elsewhere. Many companies use such machines for less demanding tasks or use them in training centres to teach the basics of mechanical processing.
In particular, smaller companies or companies that do not have the budget to buy new machines find older technology a valuable resource. With these machines, they can expand their machine park cost-effectively and increase their productivity. Even machines that are really too old or irreparable are often still used as a source of spare parts.
Q) Can you tell me more about the ALICIA project and Surplex’s role in it?
The EU project ALICIA, short for "Assembly Lines in Circulation", aims to develop a circular economy ecosystem for production lines.
· Situation: A large proportion of machine parts in production, such as robot arms or conveyor belts, do not reach their maximum service life and are taken out of service and scrapped prematurely.
· Vision: In five to ten years, production resources such as entire production lines, individual machines and spare parts will be traded between individual factories in Europe and reused until their life cycle has been maximised.
· Target: The energy and material requirements are to be reduced by at least 70% and a reutilisation rate of the machines and systems of up to 100% is to be achieved.
This system is to be tested in the automotive industry in particular, with industrial partners such as Continental in Germany and Comau in Italy The Technical University of Munich is coordinating this project, which involves a total of 13 partners from industry and research.
Surplex, known for its expertise in the European and global market for used machinery, is acting as a consulting partner within ALICIA. A key objective of the project is to develop an online marketplace for used machinery where production resources can be traded and reused in order to maximise their life cycle.
This marketplace connects buyers, sellers and service providers in the field of remanufacturing and recycling and thus supports the exchange and optimal utilisation of production resources.
Q) How does the circular economy and sustainability fit into your business strategy and approach?
The circular economy and sustainability are key elements of our corporate strategy. By giving used machines a second, third, fourth, ... life, we actively support the circular economy. Sellers decide not to scrap their machines, but to make them available to other companies for further use.
Buyers, in turn, decide not to buy new machines, thereby helping to save considerable resources that would have to be used to manufacture a new machine. Insolvencies also bring modern, energy-efficient machines onto the used machinery market.
Another pillar of our strategy is the "digital & sustainable" concept. Thanks to our online auction house and the option of 3D viewing, we avoid unnecessary journeys by our customers. This also helps to reduceCO2 emissions and promotes more environmentally friendly business activities.
Q) What separates Surplex from the rest of the industrial auction house competition?
Surplex distinguishes itself from other industrial auction houses through its comprehensive full-service offering. We support buyers and sellers at every step of the process. For example, Surplex takes care of the organisation of customs documents, dismantling and transport of the purchased machines.
This is particularly advantageous as many of our buyers operate worldwide, while most of the machines traded via Surplex.com are located in Europe. Sellers benefit from the fact that Surplex also takes care of the clearance of entire halls: from the initial assessment to the recording of the machines, the creation of the auction catalogue and the execution of the auction, including worldwide marketing and removal. At the end of the project, the hall is handed over to the seller empty and swept clean.
Another decisive advantage of Surplex is its comprehensive customer service in 20 languages. This enables Surplex to communicate effectively and personally with a broad international clientele. The Surplex.com platform is also available in 16 languages, which further improves accessibility for an international audience and increases user-friendliness for buyers and sellers from different countries.
Visit www.surplex.com for more.