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.

Conventional 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.

CNC machining
centres

  • Again, demand continued into 2009 with lower quality and older
    machines entering the export market sector, providing they are
    correctly priced.
  • 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.

CNC
lathes

  • 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
    effect.

Tool room
equipment

Demand remains steady for
good quality and well maintained equipment. However, values of such
are generally low, especially if sold for export markets.

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  • Older and misused machines have limited appeal.

Electrical discharge
machines

  • 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.

Conventional gear
machinery

  • Demand slowing in UK and overseas as the heavy plant sector
    continues to slow.
  • Strongest demand for conventional machines is still seen from
    developing economies.

CNC gear
machinery

  • 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.

Demand for machine tools