How to Use the Sale of Used Metalworking Equipment to Grow Your Maryland Business

Baltimore Metalworking Auctions

How is your company's asset recovery strategy coming? When it comes to selling metalworking equipment Maryland businesses find many benefits in the process but doing so in a fashion that maximizes your return on investment is vital to keeping your company operating successfully, especially in today's shifting economy and digital transformation. To keep your business flexible and agile during these changes, it's vital that your asset recovery strategy take advantage of all the right options in the market. Here's a quick look at how you can use the sale of used metalworking equipment from your business to fund future growth for your Maryland business.

Table Of Contents:

The Benefits of Selling Used Metalworking Equipment in Maryland

If you're considering making a change in direction for your Maryland metalworking company, you're not alone. With regular falls in the industry over time, manufacturing has slowed down significantly over the years, which is especially apparent in a report prepared by the Manufacturers' Association of Maryland. Before the recession, it wasn't uncommon to see a 3% drop in both the number of workers employed in and the number of firms in manufacturing over a single year. However, Maryland also has some of the highest-paid manufacturing sector, averaging about 27% higher pay than all other private-sector jobs in the state in 2006. This means the state tends to attract the most highly-skilled metalworkers who are looking for better positions to support their lifestyles and their families.
Maryland Manufacturing Companies

This concentration of highly-skilled labor in a shrinking industry creates a perfect storm for manufacturers who want to take advantage of the tariffs on foreign goods to begin producing higher-quality, higher-technology items in the US again. But how do you support this change to your business? By selling used metalworking equipment in Maryland! The sale of your used equipment provides you with significant equity that you can then use to finance a change in operations or an expansion of your existing operation, allowing you to grow your company without as much risk or investment.

Maryland Metalworking and Manufacturing Incentives

If you've looked at the incentives available to metalworking and manufacturing businesses in Maryland these days, you know that you're in a prime position to grow your company. There are numerous incentive zones for areas that are still performing poorly as the economy recovers, including large swaths of Baltimore and many more rural areas of the state. These include options for job creation tax credits and enterprise zone property tax credits if you're operating or starting a business in that area. More Jobs for Marylanders, passed in 2017, provides you with tax credits for job creation, making it less expensive to hire some of those highly-skilled metalworkers mentioned above. Breaking into exciting new areas with your business? Research and development costs can now be written off. Adding jobs for an aerospace, electronics or defense contract? There's a tax credit for that.

Maryland Metalworking Equipment

But what if you're looking beyond simple tax credits? Though they can save you money on your annual returns, sometimes your business needs a solid shot in the arm to keep things moving. Fortunately, Maryland is in a great position to help you do this. As with many states, Maryland offers Community Development Block Grants to communities to provide funds for business development and loans. The Sunny Day fund program offers funding for businesses in areas of high unemployment who will provide significant levels of employment in the area. Considering international sales? ExportMD provides funding to help offset marketing costs for international programs. If your plan is to upgrade your existing manufacturing equipment or entering new economic markets, the Maryland Economic Adjustment Fund can provide funding for loans and grants for businesses that have a hard time finding funding otherwise. And of course, the Maryland Small Business Development Financing Authority provides a range of business loans, grants, guarantee services and similar options.

How the Sale of Used Metalworking Equipment Helps Grow Your Maryland Business

Here are a few examples of how selling your used metalworking equipment helps grow your company:

  • Why invest in new equipment when you still have a warehouse of old machinery? Selling that old equipment gives you cash equity to be able to invest, instead of having to take out as large of a loan or tie up as much capital in the new equipment.

  • You immediately have significantly more warehouse space available for other purposes. Considering an expansion? Now you've got room for it. Thinking about stockpiling material during a low point in the market? Go for it!

  • Let's talk tax benefits. The recent changes in federal tax code allow you to more quickly or immediately depreciate new equipment completely, but only for a limited time before some of those benefits expire. Take advantage of it by replacing aging equipment at your company now.

  • What about community goodwill and social responsibilities promises? Selling used metalworking machinery that you no longer need is a great way to cover the cost of these programs without dipping into capital.

How to Sell Metalworking Equipment Effectively in Maryland

If all these reasons have convinced you that it's a great idea to replace your aging metalworking machinery or simply sell excess machinery outright, you're in a good position to get started. However, before you start the process, it's important to go about the sale process intelligently. Here are a few things to consider before you list that piece of machinery for sale:

  • What condition is the metalworking equipment in? If it's in poor shape or needs some simple repairs to get it back up to proper operating condition, consider whether the cost of those repairs will create enough of an increase in the price you receive for the equipment in the long run. Like anyone in the world, equipment buyers will usually pay more for better machinery.
  • Do you have proof of maintenance, repairs and upgrades made over the years? If you do, now is the time to put that information together for prospective buyers to review. If you don't, consider talking to your service company to see if you can get a copy of their records on that piece of equipment, allowing you to develop a history for the equipment.
  • How is your local and regional industry doing compared to other parts of the country or world? This will make a big difference in terms of whether you decide to have an onsite or an online auction. If the industry in your area is going strong, consider selling onsite, but if other areas are hot, go online to maximize profits from the sale.
  • Have you had the chance to get good photos or video of the equipment, especially in action?  This helps with auction listings as it shows prospective buyers what your equipment is capable of, building interest in your equipment. Don't forget to provide a sample of the machine's output, if applicable.
  • What will it take to remove the equipment and who will be responsible for that part of the process? In addition, does the equipment need to be removed from the premises before your new equipment is installed? If you take these issues into account, you can include them in your listing, making it very clear from the beginning what is expected of buyers.

Why Sell Metalworking Equipment On Aucto?

When it's time to sell metalworking equipment Maryland companies turn to Aucto to get the job done. Why Aucto? We focus on bringing the speed and power of e-commerce to metalworking equipment liquidation. As a premier auction platform, we provide strong results through our online and onsite auction systems. Instead of being tied down to local or regional auctions, you can gain access to a global marketplace from your office or any location with an internet connection.

Sell Metalworking Equipment In Maryland

We provide THE place where industrial equipment sellers and buyers connect. Our selling process is always completely free while our buyers enjoy paying the lowest possible brokerage fees for purchases, making it popular for our tens of thousands of registered users. Our easy-to-use platform is simple but powerful, allowing you to monitor, track and analyze activity, historical data and wish lists. Why not take a few moments right now to set up an account? After deciding to sell metalworking equipment Maryland businesses see a huge boost in their asset recovery returns.

Contact Aucto

Have a question about buying used industrial equipment or selling used industrial equipment online? Give Aucto a call at 1 (844) 326-7339 or email at sellers@aucto.com, and our team of experienced online auctioneers and customer support team will be more than happy to answer them.

Like this article? Check out some of our recent articles 3 Reasons Online Auctions Are Changing the Industrial World Forever, Buying Used Material Handling Equipment in Auctions, and Asset Recovery Options for Surplus MRO & Industrial Equipment to learn more.

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