From The Internet of Things to the increased adoption of 3D Printing, industry trends present challenges and opportunities for industrial manufacturers. The key to capitalising on these trends lies in an unexpected area: your surplus, idle, and obsolete assets, from raw materials such as paper and rubber to metalworking and woodworking equipment.
Here are four major trends affecting your industry and how an effective surplus asset management program helps you make the most of them.
1. The Internet of Things
The Opportunity: For industrial manufacturers, the next generation of Internet of Things (IoT) technology will leverage data and advanced analytics from connected platforms to help you manufacture products that are higher quality as well as more durable and reliable. For example, new wind turbines from GE contain thousands of sensors that capture 400 data points per second, providing immediate, ongoing analysis that allows GE and its customers to optimise turbine performance in real time and make proactive maintenance and parts replacement decisions.
How Surplus Management Can Help: Industrial manufacturers that upgrade to new, IoT-enabled equipment will end up with outdated machinery they need to sell or dispose of. An effective surplus management program helps you identify these assets across your organisation, determine their value, and redeploy them internally or sell them for maximum recovery to targeted buyers, such as industrial manufacturers in developing countries.
2. Augmented Reality
The Opportunity: Advances in technology have enabled manufacturers to deliver real-time information and guidance at the point of use. With augmented reality, users can follow text, graphics, audio, and other virtual enhancements superimposed onto goggles or real assemblies as they perform complex tasks on the factory floor. These same tools can assess the accuracy of those tasks and help monitor for quality risks.
How Surplus Management Can Help: As manufacturing plants adopt new technologies and become more efficient, they may be able to streamline production without sacrificing quality or quantity of product. Instead of allowing the unused equipment resulting from this streamlining sit idle, companies can let a trusted surplus asset management partner build a market for it, ensuring maximum recovery.
3. 3D Printing
The Opportunity: 3D printing, also known as additive manufacturing, produces solid objects from digital designs on demand. Early adopters are using 3D printing to produce parts in small lots for prototypes, reduce design-to-manufacturing cycle times, and dramatically alter production economics. In one recent example, BAE Systems saved over 60% on parts costs, avoided retooling costs, and reduced production lead time by two months by using 3D printing to produce a critical injection-moulded plastic part for a regional jetliner.
How Surplus Management Can Help: 3D printing may eventually make some of the manufacturing equipment that sits on your floor obsolete. With a surplus management program, you can sell this equipment to the highest bidder, generating working capital to invest in your 3D printing operations.
4. Mergers and Acquisitions
The Opportunity: The latest merger trend in your industry? Fewer deals but more value per deal, a trend driven by the rise of “megadeal” mergers valued at over $1 billion. Acquisition activity remains robust, notably in the Asia Pacific region due mostly to China, in which 19 deals were conducted in Q1 alone. M&A activity remains an appealing strategic option to help your company improve efficiencies and enter new markets.
How Surplus Management Can Help: Mergers and acquisitions result in surplus assets, from metal products manufacturing equipment to textiles. A proven surplus program helps you skilfully identify, value, and sell these assets in the secondary market, generating capital to fuel your growing core business.
The Internet of Things. Augmented Reality. 3D Printing. Mergers and Acquisitions. These four industrial manufacturing trends present challenges and opportunities for industrial manufacturers, and all have a common end results: surplus, idle and obsolete assets. An effective surplus asset management solution can help you capitalise on these trends and turn obsolete equipment into valuable revenue. In over fifteen years serving this industry, Liquidity Services has helped dozens of the world’s leading industrial manufacturers capitalise on industry trends by managing, valuing, and selling their surplus assets for maximum return.