What
started out as a social mission to bring together suppliers and customers of
used machines, has now grown into a circular economy mindset within the process
industry. The Surplus Select circular economy initiative, founded in 2001,
gives start-ups, R&D departments and pilot plants the opportunity to
achieve limited-budget production by using pre-owned processing machines.
"We started by offering very basic services, but now we have become a
serious market player, and are being approached by large multinationals for the
acquisition of high-quality, sustainable solutions”, says Rick Soepenberg,
founder and owner of Surplus Select.
Circular economy specialist Surplus Select is seeing an increasing demand for used machines (interview Euro Bulk Systems)
‘Many companies are not doing enough, morally and financially, with regard to reuse’
Whether
it’s machinery for the food, cosmetics or animal feed industries, Surplus
Select has over 400 eye-catching machines at their 1500 m2 warehouse and 4000
m2 outdoor site in the Dutch village of Swifterbant; all waiting for new
owners. According to Soepenberg, buying up large stocks of surplus machinery is
a risky but nevertheless deliberate choice, as demand has not yet materialized:
“I can offer plants a much better service as the machinery is removed quickly.
The process for the selling party becomes much shorter if we take the strain.
We sometimes have projects with more than 20 machines, one of which, perhaps,
is not suitable for our target group. Surprisingly, we often find a buyer for
that one, too.”
Social acceptability
Soepenberg
started his company 18 years ago with the idea of developing a service that
would obtain a large degree of social acceptability. He began documenting
redundant machines that were due to come onto the market, sent periodic mailing
lists to potential buyers and brought supply and demand together. Gradually,
the owner changed from being intermediary to becoming a stock-holding
wholesaler of used machines. The role of intermediary shifted from 90 to 10
percent, and the focus moved increasingly towards stock: from 10 to the current
90 percent. And what a result! Not only the stock, but also the quality
increased. The range of steel machines has largely been replaced by stainless
steel models, and Surplus Select has seen both its network and brand awareness
grow.
Growing
awareness
Yet there
are still companies that are reluctant to incorporate used machines into their
production process. Mistakenly so, according to Soepenberg. According to him,
used machines are often still in perfect condition and can be maintained to
last for decades. “Many companies are still not doing enough, morally and
financially, but I do see a growing awareness within society as a whole.” He
does not rule out a future trend, where reused machines are fully accepted.
Thanks to the company’s solid network, it is becoming increasingly successful
in purchasing machines fewer than two years old. Soepenberg: “When the machines
leave us, they’re in very good condition. The most important factor for our
customers is that the machine is running perfectly. Then, age doesn't matter as
much. Of course, for complex machines, age does play a role with regard to
maintenance and technology.” For this reason, the range held by Surplus Select
consists of various types of machines, all with a used production time of
between two and twenty years. However, A-brands and newer machines remain the
most sought-after.
Market
segment
Surplus
Select works closely together with manufacturers and local parties in the field
of technical support, modernisation, parts and repairs. For example, the screw
conveyor and machine factory Van Beek in Drunen, Netherlands, offers a buy-back
guarantee on new machines in cooperation with Surplus Select. This cooperation
with manufacturers is very unusual, as Surplus Select by the nature of its
services, more or less discourages buyers from investing in brand new machines.
According to Soepenberg, the opposite is true: “We do not fish in the same pond
as the manufacturers, in fact, we even supply new customers. We focus on a
different market segment than the Unilever and Friesland Campinas of this
world, which have to meet the highest standards. The reason for purchasing a
new machine often has to do with the production requirements for the latest
techniques, customization, efficiency and hygiene. Used machines can no longer
meet the latest standards.”
Increasing
demand
The
digital revolution has drastically changed our society. Developments are
accelerating and new technologies continue to emerge. This also has
consequences for the process industry and the speed with which machines are now
considered redundant. As a result, Surplus Select sees the demand for used
machines increasing all the time. According to the owner, this is mainly due to
immediate availability and the opportunity to buy used A-brands at reduced
rates. These are often approximately 25 to 65 percent cheaper than the average
purchase price of a new model. But Surplus Select also offers added value in
other areas. “We know the entire background of the machines and are familiar
with their history. Moreover, we take time for our customers, personal
attention is of paramount importance to us. Also, we are able to carry out
large projects, so multinationals can find us. We can handle a couple of trucks
loaded with machines, all at once”, says the owner, who outlines a bright,
sustainable future where supply and demand for used machines are brought even
closer together.
Article on Euro Bulk Systems 2021.