Pros and cons of new versus used processing equipment: Part 2

Key takeaways

Kice Industries is a key provider of process equipment and services, deeply rooted in the air systems sector.
Choosing between new and used equipment requires careful analysis of safety, compliance, and operational needs, particularly concerning dust hazards.
Rebuilding equipment can be challenging due to difficulties in achieving OEM standards, making new purchases more appealing in many cases.
The secondary market for equipment offers alternatives but also presents risks that manufacturers must navigate carefully.
Sustainability is becoming increasingly important in equipment design and lifecycle management, with OEMs encouraged to consider their environmental impact.
Purchasing strategies among large companies are evolving as they demand more data-driven approaches and better collaboration with OEMs.
Digitalization and IoT are key trends shaping the future of processing equipment, with implications for both new and used equipment.

Summary

Overview of Kice Industries

Kice Industries, established in 1946, specializes in air handling and technology within various process environments. Their products, particularly aspiration systems, cyclones, and rotary air locks, are critical for separating materials, enhancing product quality, and ensuring safe operations in industries such as food, plastics, and chemicals.

New vs. Used Equipment

The discussion highlights the considerations customers must make when choosing between new and used equipment. While used equipment can be viable in certain contexts, it is imperative that companies perform thorough research to understand the associated regulatory compliance and safety hazards, particularly with equipment intended for dust collection that poses explosion risks.

Rebuild vs. Repair

The conversation addresses the complexities of deciding whether to rebuild or repair equipment. Kice emphasizes the challenges faced by companies attempting to restore equipment to OEM (Original Equipment Manufacturer) standards, which often makes purchasing new equipment a more straightforward option when factoring in overall costs, downtime, and logistics.

Market Implications of Used Equipment

Rod Henrichs touches on how the used equipment market affects original equipment manufacturers (OEMs). While it might reduce new sales opportunities, it also signifies an ongoing demand for different purchasing options, encouraging OEMs to learn from the secondary market.

Sustainability Factors

The episode considers the impact of sustainability in manufacturing. The speaker advocates for OEMs to reflect on their own circularity goals and to find ways to manage equipment lifecycle effectively, while also maintaining compliance with environmental standards.

Transformation in Purchasing Strategies

Changes in purchasing strategies are analyzed, with larger companies becoming more organized in their equipment procurement processes. This evolution is influenced by the need for better data on equipment usage and lifecycle management, which can improve collaboration between equipment suppliers and manufacturers.

Technological Advancements and the Future

The role of digitalization and smart technology in processing equipment is discussed. As manufacturers incorporate IoT and predictive maintenance into their designs, it influences the debate over the benefits of new versus used equipment, with technology often necessitating updates to existing systems.

Show notes

Rod Henricks, VP of sales for Kice Industries discusses hidden costs and risks of buying used and rebuilt processing equipment.