Liquidation Report:

Three Sectors to Watch Now

As a slowly but steadily improving U.S. economy drives demand for used capital equipment across a multitude of industrial sectors, AccuVal-LiquiTec has identified three areas that are particularly vibrant: aerospace, automotive and energy.

Participation at auction and liquidation events in these segments is high. Bidding is robust, and the resulting prices paid for used assets have been very strong. Machinery and equipment throughout the supply chain in these industries should continue to hold value well in auction and liquidation settings as the economy continues expanding.

AEROSPACE has been flying high for the past several years. Because of the close tolerance work required in this industry, used aerospace-related machinery is often in excellent condition. We've noted solid interest in a range of CNC machine tools, especially 5-axis machining technology and multi-axis turning/milling centers that offer high productivity for complex parts. Also in demand: CNC gear making, CNC laser cutters, hydraulic presses and other sheet metal forming and fabricating, waterjet cutting, plastics and rubber processing, electronics manufacturing and testing, CNC routers, autoclaves and other machines used in composites-related manufacturing.

AUTOMOTIVE is in the fast lane, with demand so heavy right now that the major U.S. automakers are cutting back or eliminating their traditional two-week summer shutdowns. Many associate the automotive arena with large stamping presses and automated welding robots - and these two types of equipment are certainly in demand now. Also drawing interest: CNC and automatic machining, turning and grinding, gear making, die casting and foundry, large boring mills and other machines that produce molds, dies, special tools, jigs and fixtures. In addition to metalworking, we're seeing healthy demand for machinery related to plastics and rubber processing, textile and glass, coating and material handling, as well as assets utilized in the production and testing of high-tech electronics that are integral to modern vehicles.

ENERGY has been heating up rapidly over the past several years as the U.S. redefines its role in this sector. Significant investments in exploration and production, together with successful new discoveries, have led to a massive expansion that shows no sign of cooling down. This industry relies on drilling rigs, large pumping units and a wide range of related heavy-duty tools and equipment. Those assets are produced with large-capacity machine tools that include CNC and conventional machining, turning, grinding, steel fabricating and welding equipment. Also in demand: fracking-related equipment, coil tubing units, workover rigs, generators, boilers, natural gas compressors, highway trailers and tanker rail cars specific to the transportation of oil and gas, in addition to the heavy-spec truck tractors and trailers that transport E&P equipment to and from job sites.