New research shows UK businesses have nearly £59 billion worth of capital tied up in working assets and equipment they no longer need, much of which could be sold on to others.
According to surplus assets company Ramco, around 3.7 million businesses are sitting on good quality, working unused equipment, at an average value of £10,000 per business.
Despite three quarters of senior managers surveyed by Ramco saying they dislike the idea of unwanted equipment being scrapped or left to ruin, 59 per cent admitted they have disposed of working equipment by sending it to landfill in the last five years.
However, demand for second-hand business assets is now at the highest point in Ramco’s 26 years of operation. With pressure mounting on businesses to find ways to save money and support a more circular economy, Managing Director Neil Sanderson said the findings were frustrating:
“The second-hand market for consumer goods is booming through platforms like eBay, Vinted and the rise of fashion rental. It’s the same picture for the commercial second-hand market, so to discover businesses have such huge capital tied up in good assets they no longer use when costs for doing business are rising, is hard to hear.
“It’s frustrating to see how much untapped potential there is when it comes to second-hand business goods. From catering equipment to plant machinery and vehicles, across the country there’s a mountain of good quality items being unused and left to ruin.
“As the cost of doing business spirals, we’re urging businesses to use this opportunity to review their assets and where they’re no longer needed, give them a new lease of life instead of letting them go to waste. It’s an opportunity to reduce an organisation’s carbon footprint, minimise storage costs and generate capital. None of us can afford to waste resources - for the planet and for profit.”
According to Ramco, electrical goods top the list of second-hand equipment sought by buyers, followed by industrial plant and machinery.
To help organisations see the potential in their unwanted equipment, Ramco has launched a ‘value finding tool’ to illustrate the carbon savings and financial return that can be generated by giving assets a new lease of life.
Another circular economy platform, Machine Compare, has launched its own Amazon-esque marketplace where manufacturers with unused inventory can list items for sale.
For more support and guidance on reducing the costs of doing business and enhancing cashflow, speak to our specialist Manufacturing Team today.