When first starting operations within the concrete industry, it’s sometimes best to start off with a small concrete batching plant. This is because some businesses may find out that the concrete industry isn’t suitable for them. By investing in a small concrete batch plant, a worst case scenario will only lead to a minimal sunk cost for the business. When investing in one of these plants, one of the most common questions that managers have is whether or not to invest in a new or used plant. This article will outline the positives and negatives of each option.
Going with a new plant provides the greatest amount of security for the business. New plants come with guarantees and manufacturer warranty that ensure that if anything goes wrong, there will be some sort of insurance to sort things out. Traditionally conservative businesses that are looking to branch into concrete batching would usually lean towards going with a new ready mix plant. This way, they can minimize all of the great risks that are inherent in venturing into a market that they may not have any previous experience with.
However, it’s worth remembering that going with new small concrete batching plants means having to pay a premium price. Just like with most products, buying new usually means that there is a significant premium attached to the asking price. Hence, it’s to be expected that the value of the plant will decrease immediately after the purchase is finalized. For companies that are looking to increase profitability potential, going with a new mobile batching plant for sale could mean sacrificing too many potential profits from running a concrete batching operation.
Hence, the best benefits that come with using used small concrete batching plants is the fact that they are available for prices that are a fraction of what is being asked for new plants. This means that it’s highly accessible for companies that are either in a strict budget or are looking to make the highest profit margins from their operations. Lots of riskier companies that are confident in the fact that they will succeed in the concrete industry will opt for this type of mini cement plant.
The biggest downside that comes with small concrete batching plants that are used is the fact that they are risky regarding potential faults and malfunctions. At the end of the day, there’s a reason why these used plants are being sold. Sometimes, it’s because the seller has found that the particular model of the plant is prone to malfunction and is thus getting rid of it before it causes more problems. Hence, being able to navigate the market for these plants while trying to avoid anything that is low in quality is risky. Get more details: https://mobileconcretebatchingplant.net/mini-mobile-concrete-batching-plant/.
Overall, such factors as risk tolerance and require return will dictate whether or not a company should go with a new or used small concrete batching plant. The information presented in this article should shed some light regarding why certain businesses go with either a new or used plant. Ultimately, a company should consult with shareholders and stakeholders to come up with the best judgment regarding these plants.