2024 Trends in the Used Equipment Industry
As the new year approaches, you might be planning out your operations, finances, and equipment for 2024. Understanding 2024 trends in the used equipment industry can help you properly plan for expansion and increased efficiency. In this article, we’ll cover the major trends you can expect going into 2024.
Greater Financing Ability
Interest rates are finally starting to drop, with the Federal Reserve projecting at least three rate decreases in 2024. What does this mean for manufacturers and contractors that frequently purchase equipment? First, financing used equipment will be less expensive. This means that you can reinvest in equipment without pinching pennies each month.
Next, lower interest rates mean you might qualify for a larger loan amount. Instead of only purchasing one piece of machinery, you might now be able to purchase two, giving you the ability to reduce bottlenecks and increase your capacity. Furthermore, lenders are fighting for your business, so 2024 presents the perfect opportunity to finance used equipment with favorable terms.
Increased Demand for Equipment
With inflation rates expected to drop in 2024, consumers will have more money back in their pockets which translates to more purchasing power. If you’ve been just getting by the past few years following the pandemic, you might notice an uptick in customer demand. You don’t want to be turning down business because you don’t have the equipment or manpower.
This will lead to an increased demand for equipment to reduce constraints in operations. Purchasing just one piece of used equipment could allow your business to double in size. More businesses will be interested in used equipment purchases, so it’s important to start looking right away.
Robotics and AI Will be Front Runners
Couple lower financing costs with an increase in customer demand and many business owners will pursue used equipment with robotic and AI components. Especially as technology continues to advance, large corporations are constantly selling off their “old” equipment that might only be a few years old. This gives small to mid-sized companies the ability to secure innovative equipment at a fraction of the price.
When it comes to evaluating your used equipment purchase options, be sure you maximize both cost and features. For example, would a $100,000 robot be worth the purchase price if you only use half of the features? Probably not, especially if there is a cheaper alternative that provides you with the same benefits.
Getting Started
2024 will be a year of greater financing capabilities, increased customer demand, and added technological advancements, but only if your business takes advantage of used equipment purchases.
About IMS Supply: IMS Supply is a leading distributor of maintenance, repair and operations (MRO) products and services with facilities in East and West Michigan and Kentucky. Through our MRO Asset Recovery Program we stock hard to find parts and supplies from thousands of different manufacturers at prices up to 70% less than MSRP. Contact us today to find out how we can help your business.
