What should I do with used equipment?

Should I sell or recycle old industrial equipment?

If your business has old factory machines or used industrial, engineering or construction equipment that it no longer needs or has reached the end of its useful life, you may be unsure how to get rid of it.

Broadly speaking, you have four options. If the old equipment still has some resale value, you can sell it through an online auction or via a negotiated sale. Alternatively, you could recycle or scrap it, repurpose it or donate it to a nonprofit that would benefit from it. The right option for you will depend on the equipment’s age, condition and value.

Selling old equipment

If you have old factory machines or other industrial equipment you no longer need, selling them makes sense if they still have some residual value. A good place to start is with a free asset appraisal. That will give you an idea of how much the equipment is worth so you can decide on the next steps. Selling the asset also contributes to the circular economy by producing less waste and improving sustainability.

If there is value in the asset, you could sell it privately by creating a listing online or in a trade magazine. You or a company representative will need to write the listing, take pictures, respond to enquiries and arrange and attend viewings.

Letting specialists manage the sale on your behalf is usually easier. A negotiated sale may be the best option for a high-value or complex asset. Expert negotiators will work on your behalf to identify prospective buyers and sell your assets at the best possible price. This approach typically works well with assets in niche sectors that are limited by buyers and demand.

On the other hand, if the equipment is in high demand, an online asset auction may be preferable, as you’ll typically receive a higher price for the equipment. The auctioneers will also create the listing for you, market the asset as widely as possible and conduct physical viewings on your behalf.

Recycling or scrapping old equipment

If there’s not much value in the equipment, perhaps it’s old or requires a significant repair, the best option may be to recycle or scrap it. There will usually be some value in the raw materials, particularly scrap metal and precious elements, although you shouldn’t expect to receive a substantial payment.

Some manufacturers also offer take-back schemes where they collect used equipment from you. That will remove concerns about disposal costs and lead to the reintroduction of raw materials into the manufacturing cycle.

Repurposing old equipment

Depending on the type of equipment, there may be an innovative way to repurpose it and give it a new use within your business. That will also reduce the expense and ecological impact of disposal. For example, you may be able to remove and reuse parts, such as hydraulic pumps, transmission systems and engines. Decommissioned equipment could also be a helpful training tool for new hires.

Donating old equipment

If the equipment is in good working condition but has minimal value, you can donate it. For example, if you have used agricultural equipment you no longer need, you may be able to donate it to an agricultural training provider or a not-for-profit farm.

There are also organisations, such as Tools with a Mission and WorkAid, that refurbish donated tools and equipment and send them to training centres and self-help organisations in the UK and internationally.

Do you want to sell used industrial equipment?

At Eddisons Asset Auctions, we host regular auctions and arrange negotiated sales of a diverse array of used equipment and machinery. Find out more about our engineering, farm, metal and woodworking equipment auctions and contact our specialists for a free asset appraisal. We handle the process from start to finish so you can generate the best possible return from your assets.