Traditionally, the used equipment industry and especially the market for used switchgear has been thought of as being counter recessionary. The common wisdom being, customers will spend money to maintain and upgrade old equipment rather than buy new to save money and to avoid the long lead times associated with purchasing and installing new switchgear.
Recent growth in manufacturing and our economy has changed this dynamic and now used switchgear, circuit breakers and parts have seen a surge in sales that looks to continue well into the future. We see the driving forces behind the growth as:
- Increased demand for products pushes manufacturers to restart old production lines and push them to new limits.
- Much of the switchgear that powers these lines are no longer supported by the original manufacturer because of the planned obsolescence. This creates increased demand for used and aftermarket solutions. NPE AFTERMARKET PARTS
- Used and aftermarket solutions are typically 40-60% less expensive than purchasing new equipment, and they are available much faster and generally carry the same or better warranty as new. To add to this, the fact that personnel are already familiar with how this switchgear operates and you have a win-win scenario.
- Increased cash flow from the economic upturn allows for maintenance and upgrades that had been previously deferred.
- Regular maintenance and testing of switchgear and breakers will increase the life span of the equipment by decades. Older technology can be easily upgraded with options like arc flash protection, ground fault and communications. All these factors will reduce down-time and unscheduled outages.
- For Field Service Specialist - servicing switchgear that has been obsoleted by the manufacturer will also serve as an opportunity for companies to provide other equipment and other services that field engineers can alert them to. Having your people in a plant, actively promoting your products is the best advertising you can get.
- Older switchgear can be repaired and upgraded to meet new demand. Many of the new products are sealed and unable to be repaired. As a result, repairs or upgrades that would cost a few hundred or few thousand dollars, and cannot be performed and users are forced to discard equipment and purchase new replacements for tens of thousands of dollars and potentially long lead times.
- Many customers are realizing that planned obsolescence will also render new installations of the latest whizz-bang technology obsolete, the same way their current equipment has been treated. Maintaining and upgrading current equipment just makes sense.
The bottom line is that just as a rising tide raises all boats, as the economy grows and thrives, so will the demand for used equipment dealers like National Power Equipment, where our motto is, "The right equipment, at the right price, right now!" Whether you are an end user, in the repair industry or a dealer, we strongly recommend you prepare for double digit growth in 2021 and the years that follow.