May 17, 2018 PA-M05-18-CL-001
When a company is looking to remove surplus equipment, they should rely on a team of experts like those at Federal Equipment Company. Selling surplus equipment is no easy feat, especially independently. The sale of surplus equipment is a multi-pronged process that requires input from several key decision-makers. Perhaps the principal hurdle when selling surplus equipment is determining what exactly qualifies as surplus and what is available to sell. All steps made after the determination of “what to sell” may seem like details in comparison, but actually, hold weight. All steps of a used equipment sale must be strategic and planned for, in order to return favorable financial results and meet project objectives—including timeliness and reduced impact to other areas of the facility.
All equipment that is sold must be accompanied by clear terms of sale. The terms of the sale must plainly identify which party is responsible for removing the surplus equipment in question. There are many variables and factors to determine when moving forward, such as where the equipment is installed. For instance, if equipment is installed in an operational facility, the removal process will be a more sensitive project. Of course, each situation poses a different set of challenges and specifications. Even if the “removal” project is only loading equipment that is already disconnected and in storage, does not mean that project should be treated as an afterthought as this can still require substantial coordination with the site and equipment owners. An experienced used equipment dealer will be able to offer removal options that meet all project needs. This includes working with on-site facility personnel, contractors and supplying their own removal and loading team.
In terms of removal capability, Federal Equipment Company is uniquely positioned as standing apart from a broker or auction house. Federal Equipment Company supplies a strategic plan for all surplus equipment and uses its own removal team and on-site contractors, or third-party contractors. In some cases, customer inspections of the equipment while that equipment is installed can be favorable, but most surplus equipment project managers would rather the equipment buyers not tour an operational manufacturing facility. We remove the equipment and have customers visit our facilities rather than yours. The costs associated with removal may be included with the purchase price or managed separately—although all in accordance with the terms of sale.
At Federal Equipment Company, we follow all site safety rules no matter where we are. In addition, we generally bring our own job safety procedures to each project. As a result, we are always adaptable to all of our client’s needs, at each and every facility, including whether the facility in question is idled or remains operational.
Federal Equipment Company offers a turnkey solution of asset management and professional removal. This removal process is outlined in the scope of the project, which often determines the proposed removal plan and its terms. In an auction situation, we will contract with a third-party supplier who is paid by equipment buyers to remove and pack equipment. However, for removal and liquidation projects, we may use our own crew to remove equipment in conjunction with on-site contractors. With projects that are smaller in scope, or sensitive, we often rely on the knowledge and expertise of on-site contractors, but we contract with them directly They understand the nuances of the facility and are in the best position to coordinate activities with on-site facility personnel.
Firms looking to sell their equipment are best advised to turn to experts with a proven track record and qualified experience, such as Federal Equipment Company. We have ample experience in removing surplus equipment from facilities. Our company roots are in facility wrecking and dismantling industry, and we have managed equipment removal, movement and storage for over 60 years as a used equipment dealer. We are able to merge our equipment removal experience together with experienced pharmaceutical professionals who understand how to operate in sensitive, regulated manufacturing facilities for a guaranteed successful and easy removal process.
Given our history of successes, Federal Equipment Company is well equipped to handle equipment removal from all facilities, whether they are currently operating, “mothballed,” or closing, or if they are in the process of being converted. Equipment removal in an operational facility is a sensitive project that requires coordination for safety, facility integrity, and regulatory concerns. We bring our own safety procedures to each project—regardless of facility type, and have the ability to tackle any—and all—site-specific safety requirements. In addition to this, we have the experience and the flexibility to operate around ongoing site operations and coordinate facility intrusions, such as roof access or access through an exterior wall. Our pharmaceutical manufacturing background enables us to have both the understanding of and appreciation for GMP practices, which is unlikely to be found elsewhere. This includes project controls for cleanliness, as well as the know-how to avoid cross-contamination.
There are certain factors that a company should be aware of while a third-party provider is removing equipment from their facility. A company looking for equipment removal must consider the below:
Ultimately, any construction project involves risks, however, selecting the wrong entity to manage removal can impact the greater facility and project. These risks include injuries to personnel, cross-contamination as well as damage to other, unsold pieces of equipment, potentially creating a tremendous financial burden on the seller.
Federal Equipment Company is a trusted partner with the experience and the skill to get our clients the best possible outcome when dealing with equipment removal, including managing the entire process for them. To further this point, we have often achieved a great deal of cost savings for our clients by dealing not only with the removal activities—but also the costs for them. Many facilities have on-site contractors whose work is not bid project-by-project; if the project is large enough, we offer review and cost comparisons from comparable work to ensure the best value. In many cases, we have saved clients several hundreds of thousands of dollars by bringing in another skilled contractor to provide competitive bidding to the on-site contractor.
Federal Equipment Company guarantees that equipment is removed efficiently and effectively from any type of facility, even if operational facilities. We recognize the importance of GMP practices and maintaining quality and safety precautions—even bringing in our own operating procedures. Even if certain risks are unavoidable in the equipment removal process, Federal Equipment Company takes every, and all, precautions to ensure that equipment removal is free of issue. We rank safety as our absolute top priority and have proven our ability in this area with our 60 plus years of experience as experts in equipment removal. We are the trusted partners for equipment removal that sellers of equipment can rely on for cost savings, advice and management from start to finish.
Matt Hicks, Chief Operating Officer at Federal Equipment Company, is a pharmaceutical industry veteran with more than 15 years of experience helping companies get the most value and utility out of their manufacturing and process equipment assets.