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.

 

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ToolsConventional machine tools

– The demand for older
conventional machine tools has declined considerably over the past
12 months with large
quantities of assets currently available.

– However, late model
examples have sold in recent months, albeit at reduced realisations
from those achieved in recent years.

– The demand for large
capacity conventional machine tools has further slowed due to the
downturn in heavy manufacturing.

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CNC machining
centres

– Demand has continued
to decline during the past 12 months, reflecting the general
slowdown in the automotive and aerospace sectors. However, current
research suggests a slight uplift within the automotive sector
during late 2009 and early 2010.

– Markets have seen
almost new machining centres sell at below 50 percent of initial
cost at less than 12 months old, reflecting the current demand.
Current auction listings generally show an abundance of machines
entering the market place.

CNC lathes

– As with machining
centres the demand for general CNC lathes has reduced significantly
during the past 12 months. However, high specification examples by
leading manufacturers have sold within the UK and Europe.

– Again, an abundance
of machinery is entering the market place and auction results will
make interesting reading during coming weeks.

Tool room
equipment

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

– Older and misused
machines have limited appeal and are generally being sold at
salvageable only values.

Electrical discharge
machines

– Again, demand has
slowed for all related electrical discharge machines, both from
prime and second-tier manufacturers. This slowing is in line with
the related slowdown in both the plastics and pressings
sectors.

Conventional gear
machinery

– General demand
continues to slow in the UK and overseas as the heavy plant sector
further reduces.

– Good clean examples
of conventional machines have seen limited export demand from
developing economies.

CNC gear
machinery

– Limited amounts of
such equipment enters the market however demand is expected
continue for such equipment as facilities can update from ageing
traditional machines.

– However demand has
reduced over the past six months due to the slowdown in the
automotive and heavy plant sectors

 

Demand for machine tools