Leasing Life, in
collaboration with Tallon & Associates, publishes a monthly
analysis of data on the demand for used assets. This month we look
at changes in demand for machine tools.
- The demand for conventional machine tools continued throughout
2008 and into 2009 with export accounting for many sales. However,
recent sales appear to show that demand is starting to decline with
large quantities of similar items currently available.
- Larger capacity conventional machine tools could suffer due to
slowdown in heavy manufacturing.
- Again, demand continued into 2009 with lower quality and older
machines entering the export market sector, providing they are
- High-quality, high-capacity and late-model machines have seen
strong demand from the UK and Europe. However, again, this has
started to slow in recent weeks as closures within the general
engineering sector appear to be on the increase.
- As with machining centres, older and lower quality machines
have seen export demand if priced correctly. Such markets have been
helped by the week pound. However, as the pound strengthens, export
sales may start to slow.
- Recent UK and European demand showing signs of reduction as the
slowdown in the automotive, aerospace and heavy plant sectors takes
Demand remains steady for
good quality and well maintained equipment. However, values of such
are generally low, especially if sold for export markets.
- Older and misused machines have limited appeal.
- Demand has remained steady for high capacity machines over the
past 12 months.
- Limited demand for lower capacity equipment, especially from
lesser/second tier manufacturers due to high quantities of prime
assets available in UK.
- Demand slowing in UK and overseas as the heavy plant sector
continues to slow.
- Strongest demand for conventional machines is still seen from
- Limited amounts of such equipment enters the market, although
demand is expected for such equipment as facilities can update from
ageing traditional machines.
- However, demand reduced over the past six months with the
slowdown in the automotive and heavy plant sectors.