By Missy Dougan, account manager and strategic buyer, SIGMA Equipment
According to the Investment Recovery Association, up to 20 percent of a company’s assets at any given time are surplus to its needs. The IRA has also evaluated holding costs for idle assets, and found that the average annual holding costs for an idle asset can equal up to 45 percent of its fair market value. Those high costs give companies approximately a two-year window before they start incurring an economic loss on an idle asset.
In order to regain as much value as possible from idle equipment, companies in the pharmaceutical, food and beverage, and consumer goods industries use asset recovery programs to redeploy or divest idle assets. While smaller companies may rely on in-house processes to carry out their asset recovery efforts, medium-sized and larger companies often choose third-party solutions. When selecting a third-party program, it is important to make sure a program’s focus aligns with the company’s goals.
An important feature of any program is its software. If a company’s employees need the ability to search for equipment and request redeployment while outside the office, a mobile-friendly software is an excellent choice. A company that plans to divest idle assets regularly should select a software that reports the storage age of an asset in addition to its fair market value. A useful report offered by SIGMA Recovery, the asset recovery program offered by SIGMA Equipment, shows the total value recovered through the program during a time period.
Another consideration for companies planning to divest often is that the program they choose needs the support of divestment services such as open market sales assistance, auction services and recycling programs. Support services might also include storage, reconditioning and redeployment management. Some programs, like SIGMA Recovery, include equipment documentation to facilitate redeployment and resale with better accuracy for matching equipment to project requirements.
To learn more about SIGMA Recovery, stop by SIGMA Equipment’s booth (E-8038) at PACK EXPO International and learn how SIGMA Recovery can help you save time, money and resources. For more information and to register for the show online, visit packexpointernational.com or hcpechicago.com.
About Missy Dougan
Missy Dougan joined SIGMA Equipment’s Acquisitions and Research team in 2015. As team lead, she devotes herself to establishing client relationships to help them discover the hidden potential and value through reselling, redeploying and/or recycling their idle assets. Missy also dedicates herself to providing prompt and accurate equipment research to enhance the selling and buying cycle.