Used test equipment: A bright spot in an ever-bleak economy
By Prathima Bommakanti, Senior Research Analyst, www.frost.com -- Test & Measurement World, 4/1/2009 2:00:00 AM
Cost cutting is one key strategy adopted by almost all businesses to sail through the current poor economic conditions. One option for users looking to keep a check on their capital expenditures is to invest in used equipment. With increasing pricing pressure and easy replacement of test equipment, you might expect that the acceptance of used test equipment would be growing rapidly. Yet, the used equipment market is facing constraints on a variety of fronts.
 The communications market was the largest contributor of revenues in the worldwide used general-purpose test equipment market in 2008. |
Participants in recent research we conducted indicated that there is increased demand for used equipment as buyers can save approximately 40% on the price while still receiving product support along with a warranty similar to when they purchase new equipment. But the purchase of used equipment still requires capital expenditures, and tight budgets can limit the growth of the used test equipment market, though at a lesser extent than the new equipment market.
Brokers have become more active in the used equipment market, as they offer more competitive prices than direct dealers and manufacturers. But with brokers, there may be little transparency regarding the condition of the equipment. This affects the buyer’s confidence, which in turn affects end-user adoption of used equipment.
Recently, government officials have been recommending that companies continue making investments. One recommendation aimed at furthering that goal, which has a direct impact on the used equipment market, is that companies pay no interest when they buy new equipment to continue production. Such recommendations have been announced in France and Belgium, and other countries are expected to follow suit.
Another factor that puts pressure on the used equipment market is the option to rent equipment. There is greater demand for rental equipment than for used equipment, as such expenditure is covered under operational expenditures. A buyer’s liberty to terminate the rental contract when the equipment is no longer needed proves to be a major driver for market growth. And end users perceive the absence of maintenance requirements as a key benefit to renting instead of purchasing.
But used equipment does offer advantages. To compete with the OEMs and enhance their customer base, dealers and brokers are focusing on offering high-quality equipment, and used equipment suppliers provide value-added services including calibration certificates, software upgrades, and guarantees. In addition, end users can strengthen their maintenance-and-support contracts in order to get more years out of the equipment purchased. The uncertain global economy, along with the availability of a wider range of choices when it comes to used equipment, has shifted the focus of end users from just quality to price. This is a key factor driving demand for used equipment. The used equipment market has been witnessing medium growth in the past. Going forward, it is expected that the growth will remain stable in 2009 and 2010.
-
I totally Agree that recently the demand for used test equipment has raised.
By Buying used test equipment you can save up to 70% not only 40%...
The demand for used test equipment is not only when economy is down but also while everything is rising, this is the way to use wisely your budget and be prepared to survive even tough time..
We are at AllTest Israel find it more and more common to buy used test equipment, electronic, optic, communication testers, RF etc...
You may have a look at www.alltest.co.il
Shiri - 2009-11-10 10:28:56 EDT -
this is a test
Mp - 2009-20-8 10:16:35 EDT -
I absolutely agree that end user will benefit a maximum service in renting instead of purchasing. Renting Electronic Test Equipment has a lower cost that buying used equipment. Electronic Test Equipment maintenance is time consuming and expensive. Having some trouble in renting? Item replacement is the fastest way to get back in operation. Having no expenses for maintenance.
Electronic Test Equipment - 2009-18-8 04:48:00 EDT
No related content found.
- 0 rated items found.
Datasheets.com Electronic Parts & Inventory Search
185 million searchable parts
- Part Number
- Description
- Inventory
- Products
- Manufacturers
View All Webcasts
