RESALE 2010 : An ideal platform for used machinery and equipment

Emerging stronger from the crisis with used machinery and equipment – that is the motto of the 16th RESALE taking place in Karlsruhe from 21 - 23 April 2010. This year, nearly 500 exhibitors from over 20 countries will exhibit their goods at the world leading trade fair for used machinery and equipment. The organisers are expecting about 10,000 visitors from more than 100 countries to attend. “Due to the improvement in business conditions, RESALE will play an important function this year,” believes Florian Hess, the event’s organiser. “The trade fair will support the economic uptrend by offering an opportunity for entrepreneurs to agree deals and set the wheels in motion for further transactions,” explains the Managing Director of Hess GmbH, Weingarten/Baden.

Investments over the course of the year
As the green shoots of recovery are still a tender and delicate thing, RESALE will be an essential platform for discussion. “In uncertain times, every investment is subject to greater scrutiny,” reasons Jens Nagel, Managing Director of the Federation of the German Export Trade (BDEx e.V.) in Berlin. “There has been strong growth in the demand for consulting services – not least because questions of financing, cost-effectiveness, sustainability and the environment are playing ever more important roles.” He adds that the global economic crisis of 2009 has also had a general and widespread effect on the used machinery market – and that 2010 will not be easy for exporters of used machinery and equipment either. He continues to sense a definite air of restraint about investment in the EU and Eastern Europe as a consequence of the crisis. In these regions, he expects no investment in expanding capacity for the time-being but companies may quite possibly be willing to spend on improving productivity. “In contrast, we expect positive momentum to come from industrialising countries, which are rapidly emerging from the crisis,” forecasts Nagel, “such as China, India and Brazil.” The international presence at RESALE is again strong  in no small part due to the support of the European Association of Machine Tool Merchants (EAMTM). “61 of the 139 suppliers of metal working machinery in Hall 2 are EAMTM members,” says Jan-Reint Voortman, President of the EAMTM. “These exhibitors come from twelve countries,” he continues and highlights the importance of the trade fair in the currently challenging economic climate. There were positive signals early in the year but these have not yet led to any major additional business. “Customers are currently thinking about the possible investments they could make during the course of the year,” explains Voortman. “So another reason why RESALE is important is that it makes it easier for exhibitors to become involved in the current purchasing plans of various companies.” This allows them to talk with potential customers and make the point “that highly specialised products with limited availability maintain their value well.”

RESALE remains the most important market platform
The used machinery trade has always been strongly driven by exports and focused on the world market. “Maintaining a presence” is therefore the order of the day – and the members of the Association of German Wholesale Dealers in Machinery and Tools (FDM) in Bonn are no exception. “RESALE is the largest international trade fair for used machinery and equipment and, as such, is simply the best instrument we have to achieve this,” argues Kurt Radermacher, Managing Director of the FDM. “So for the used machinery dealers organised within our association, this trade fair is once again a mandatory event to attend.” Used machine tools of all kinds will be on display from the areas of metal and wood working and plastics processing. “There is a clear need for investment and global demand is still present. We can see this clearly from the large number of enquiries we receive via our association’s own website www.MachineStock.com,” explains Radermacher. As in previous years, several of these enquiries are certain to result in sales at the trade fair. The exhibitors at RESALE have a comprehensive range of equipment for every sector on display. Traditionally, the largest group of exhibitors is formed by suppliers of metal working machinery – such as AGM Gebrauchtmaschinenhandel from Möglingen near Stuttgart. The company is a partner of the specialist dealer Rühle and in good spirits – certainly as far as the near future is concerned. “We are increasingly feeling the effects of the upturn,” says Thomas Bauder, Managing Director of AGM. “Principally in Germany, there is demand for products of the Amada brand – usually fairly new machines between two and three years old. These are available for about half the price of the new products,” he continues explaining the current market situation. Bauder is firmly expecting demand from abroad to grow even more strongly – especially from Eastern Europe and the Middle East. “2010 could be quite a successful year for us,” he concludes.

Quality attracts buyers from near and far
Eastern Europe and Russia but also Africa are target markets for Omar Saad as well. He will be exhibiting medical instruments and hospital equipment at his stand. “Large numbers of private clinics are being established in these aspiring regions,” says the Berlin engineer who has exhibited at RESALE for many years. “New equipment is expensive and you can save up to 70 percent by purchasing high quality used products – sometimes even a little more.” Saad also has a second string to his bow – second-hand canteen kitchen technology. This is equipment that is no longer used because German hospitals have switched to using ready-made meals. “In some cases we refurbish these canteen kitchens,” says Omar Saad giving an insight into his businesss.” But even that is often unnecessary because the equipment has been maintained to a very high standard by its operators.” The dealer recently exported canteen kitchen technology to Australia and New Zealand. Even “down under”, the word has spread “that German quality lasts for ever.” In places where domestic demand is lukewarm, foreign markets can step into the breach. RESALE exhibitor Savio Macchine from Lonate Pozzolo in Italy is betting on India. “Unlike business people from other countries, Indian entrepreneurs continued to show interest in the difficult year of 2009,” says Roberta Savio. “We expect to sell several machines to India in the wake of this trade fair and to meet new Indian customers.” He points out that European and Africa buyers, in contrast, currently seem to be playing a “waiting game”. Business has not become easier in the crisis according to the Italian. Buyers have generally been negotiating hard and expecting price discounts. “We have to fight for every cent and sellers have even had to give a discount of 40 Euros on the cost of transportation by ship on some occasions,” says Roberta Savio describing the challenges of real business life. “Sometimes it is the only way of winning an order.”

Focus on the complete life cycle
RESALE 2010 can make an important contribution by giving an additional stimulus to many suppliers. “At the moment we are cautiously optimistic,” say Günther Körber and Siegfried Düben from BIS Industrieservice Mitte, Frankfurt am Main, painting a realistic picture of the situation. “We hope that business will continue to improve until the summer and our participation at the trade fair in April fits neatly into that time frame.” The leading service and maintenance provider for processing plants and secondary structures advises, among others, customers from the chemical and pharmaceutical technology industries – and has been a RESALE exhibitor for many years. “We view this trade fair as an essential forum for networking and making contacts,” say Körber and Düben unanimously. “We want to present our company, maintain old business relationships and develop new ones.” BIS Industrieservice Mitte sees itself as a partner for every aspect of the lifecycle of a plant and therefore well-positioned in the current trend. An ever growing number of RESALE exhibitors dedicate themselves to the complete lifecycle of the machines they sell. These include Schöler Fördertechnik AG from Rheinfelden on the German-Swiss border. The company sells high quality forklifts and mechanical handling equipment made by Linde, Combilift, JLG and Votex Bison throughout the German state of Baden-Württemberg. As well as new machines, it sells used forklifts of all brands throughout Europe – but only those that it has supervised and serviced itself. The company employs around 150 travelling mechanics to provide the necessary services. Schöler has grown a forklift hire business from the sale of used machines.

                “We have approx. 1,000 used machines hired out,” reports Torsten Weiler. “Two years ago we expanded the range,” continues the Manager of the Machinery Management Department. In order to meet constantly rising customer requirements, Schöler buys 70 new machines each year for its rental fleet. The period of hire can be anything between one day and one year, with drivers included at the customer’s request. “This allows customers to compensate for technical defects with their own machines at short notice,” explains Weiler, “or increase capacity during peak periods.”

The price determines the target group
In the plastics and rubber processing segment, the exhibitor Universal Plast Maschinen (UPM) from Meinerzhagen looks forward to RESALE with positive expectations. “We felt the impact of the crisis in 2009,” says Friedhelm Dörscheln, Managing Director of UPM, reviewing the past year. “But by the end of the year, the market was reawakening. And this trend has continued through the beginning of 2010.” While demand in Germany is currently rather quiet, the company from North Rhine-Westphalia sold three component machines to India at the end of January. “Businesses in these upwardly mobile markets are often seeking high-tech products at comparatively low prices,” says Dörscheln. He adds that, in the past, Indian customers bought new German injection moulding machines. However, due to the international economic crisis, there is not sufficient money available to buy new at the moment. “So they are falling back on used machinery.” The price of a used machine has a critical influence on the target group. “Take for example a combine harvester with a new price of 150,000 Euros,” explains exhibitor Friedrich Deppe, Managing Director of Agrar-Markt Deppe from Bad Lauterberg in the Harz region of Germany. “After two years of use, its value is nearly 100,000 Euros. This kind of used high-tech product is bought by wealthy customers from countries such as France.” These newer machines are returns from the rental business. Somewhat older products fill the warehouse after sales of new machinery. “These can be good or average used machines,” he emphasises. “Or combine harvesters with a residual value of 20,000 Euros, which used to be sold to Central or Eastern Europe.” Now Deppe has his sights set on other markets. The entrepreneuer made contact with buyers from Egypt at RESALE and he hopes to make new connections with North African customers in 2010. The Middle East – especially Iran and Iraq – also seems to him to be a “region in readiness”. In addition to agricultural machines, Friedrich Deppe also expects to complete deals in modern crop protection sprayers and technology for maintaining green spaces; for example cylinder mowers for sports fields and parks.

Delegations of up to 200 participants
On the visitor side of the equation, RESALE is again expecting a large number of visitors from over 100 countries. Midan e. V., the German-Iraqi Business Organisation based in Naumburg/Saale, has made the travel arrangements to Karlsruhe for some 200 Iraqi entrepreneurs. Midan represents the interests of 1,200 German and Iraqi members and various Iraqi associations. “The purchasing power of Iraqis, which was already strong, has grown even stronger due to the recent improvement in the dollar exchange rate,” says Gelan Khulusi, President of Midan. “Construction plant and machinery is in strong demand.” Khulusi adds that Iraqi visitors also purchased forklifts, food processing machines and equipment for other sectors at the last RESALE. He also mentions that multiplier effects are at work here because many Iraqi businessmen also buy for other family companies at the same time. “I remember a case where a businessman working in the construction industry was looking round for food processing machines as well because his brother-in-law ran a butchering business.” Midan members are important decision-makers as only owners with at least a 50 percent share of the business are accepted into the organisation. “And anyone travelling to RESALE must be able to pay 4,000 Euros in travelling costs,” says Gelan Khulusi. “This is a sum of money that only prosperous people can afford – people who actually want to be active buyers at the trade fair.” Midan supports participants in the delegation with a complete travel package – and on-site at RESALE with interpreting services and legal assistance for negotiations. The association also has its own stand at the trade fair. The German-African Business Association based in Hamburg, also plans to visit RESALE 2010 with a large delegation. Over 40 participants have been announced, in particular from Uganda, Cameroon, Ethiopia, Kenya, Tanzania and Ghana. “These business people are from all kinds of sectors,” says Asmau Nitardy, East African consultant at the German-African Business Association. “Among other things, they are interested in machines for processing agricultural products, medical-technical systems, textile machines and equipment for the transportation sector.”

Global interest in second-hand
As part of a project run by the German Association for Technical Cooperation (GTZ), a delegation from the Kosova Chamber of Commerce has announced its intention to travel to the trade fair. “Up to 30 people from Kosovo will participate in the journey to Karlsruhe,” predicts Thomas Preiss, a consultant from Corporate Solution in Bad Nauheim. “Including the President and Vice President of the Chamber. The number of participants is limited and considering the immense demand, we expect that not all the entrepreneurs will be able to join the group.” Corporate Solution supports the GTZ in its activities in Kosovo and understands the needs of the region. “There is a great demand for food processing machines, packaging machinery, metal and wood working machinery, plastics and rubber processing machinery, construction machinery, commercial vehicles and medical-technical systems,” says Thomas Preiss. Anyone wishing to initiate possible deals can contact the Kosova Chamber of Commerce. “The Chamber will be represented by its own stand at RESALE and therefore acts as a contact point.” The majority of foreign visitors to the trade fair travel independently, however. Many have already contacted the organising team before the event to inform it of their machinery needs. These include Absar Ul Hassan from Umm-e-Habiba Enterprises in Karachi, Pakistan. He is looking for printing machinery with up to six colours, ideally made by Komori, Heidelberg or MAN Roland. Mityo Dryankov from Bon Ltd in Bulgaria would like to be able to portion sunflower seeds using vertical packaging machinery. He also wants to buy a cleaning machine. In Russia there is a growing awareness of ecological sustainability: Vladimir Ens from Ecomix in Russia needs a plant for recycling vehicles of all sizes. And in the United Arab Emirates, Metallman plans to fight the hot desert climate with an ice cream factory – just four examples of the global interest in second-hand machinery.

Special rail fares
Deutsche Bahn – the national German railway company – is offering special fares for participants travelling from Germany or neighbouring European countries to RESALE by train. Visitors pay just 99 Euros for a second class return ticket – regardless of which station they depart from in Germany. The first class fare is 159 Euros. The offer applies from 19 - 25 April 2010 and can be booked at the hotline 01805 31 11 53 stating the key word “RESALE”. This fare represents a considerable saving particularly for longer distance journeys. For example, the second class fare for the route Hannover – Karlsruhe – Hannover costs 93 Euros less than the standard price. The special rail fare offer is an additional incentive to take a detour to Karlsruhe – not least for visitors to the Hannover Fair (journey time 3.5 hours).

In combination with Hannover and Munich
This year RESALE is taking place at the same time as the Hannover Fair, Germany’s largest industrial show, and bauma in Munich, the world’s largest construction machinery trade fair. While players in the global market for every sector of used technology meet at RESALE, the trade fairs in Hannover and Munich complete the programme with their special sector focuses. This allows foreign buyers to attend three world leading trade fairs at once during their visit to Germany. RESALE 2010 opens its doors from Wednesday 21 to Friday 23 April at Messe Karlsruhe.

For more information
Hess GmbH - Mr. Florian Hess
Koenigsberger Straße 2
76356 Weingarten, Germany
Telefon +49 7244 7075-0, Telefax +49 7244 7075-50
E-mail: press@resale-germany.com, Web: www.resale-germany.com