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Industrial Woodworking Machines and Recessionary Spending

If a woodworking company wants to be truly recession proof, it should go into the coffin making business. Otherwise, as the economy ambiguously finds its way to a hopeful recovery, the company might have to take its fair share of financial hits on the chin. For many businesses, a lack of production demand began when the real estate bubble burst in 2008. Most types of woodwork end up in a home or business; and when someone is losing his or her home or struggling to keep it, furniture such as updated cabinetry or a new dining room table are not high on a list of needs.

When a company’s profits nosedive due to market conditions, it does what any business must do: operate more economically from within. For many companies, internal frugality has meant putting the purchase of industrial woodworking machines under a microscope, particularly by comparing new woodworking machine price ranges to the price ranges of used equipment. At a time when corporate cost cutting contributes to economic bedlam through wage cutting and layoffs, saving money without eliminating human resources is a bright spot. Investing in pre-owned industrial equipment instead of new equipment allows companies to do this.

Price Disparity

Companies that plan to increase production often ask how much they will need to spend to get the capacity they need. Unfortunately, there is not a simple answer to that question. Take CNC routers, for example. Depending on how efficient you need the equipment to be, how much extra capacity you desire for future production increases, and the type of cutting capability you need, the cost of a router could have a large variance.

The ranges for pre-owned industrial woodworking machines when compared to a new machine will be less across the board. Even so, for many companies, the thought of buying used equipment is similar to the idea of buying old real estate. Until you live in a place for a few years, you cannot be sure how well the plumbing and electrical systems will serve you. Likewise, the quality of the inner workings of used hardware leaves a lot to the imagination, except when the equipment is reconditioned.

Reconditioned Vs. Used

Unlike used industrial woodworking machines sold ‘as is,’ reconditioned equipment is restored by having worn, recalcitrant parts replaced, and the interior and exterior thoroughly cleaned. In many cases, the result is hardware that performs like new, but costs less than comparable hardware that rolled off the assembly line.

While reconditioned equipment is not a panacea for the financial woes of businesses that find it difficult to buck the economic slump, it does offer a cost effective way to acquire equipment that increases production capacity and generates more revenue. As the economy continues to recover, and consumers feel more comfortable opening their pocketbooks, the value of reconditioned hardware will increase.

To learn more about new woodworking machine price ranges versus price ranges for reconditioned equipment, contact RT Machine – a leading seller of new and used woodworking equipment – today.

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