Used Machinery Market - June 16, 1997

The market for used candy manufacturing equipment is on the increase. This growing phenomenon is not restricted to one country, one geographic region, or a certain economic development level. It is a growing global trend.

Latini Products, a division of LMC International, has found that their re-conditioned machines appeal to two main candy manufacturing market segments.

One is the small, generally family-run operation, who has been using their equipment for some time, and turns to reconditioning as a way to increase product quality without outlaying large capital expenditures. These producers are not looking for a newer, faster machine; their volume of production meets their clients' demands and they are not working to expand their customer base. Profit margin also plays a role in their not purchasing a new machine. The older machines already in production were paid off years ago and are fully owned by the company. Continuing to use these machines supports respectable profit margins, while a new investment would take years to pay off. Re-conditioning their current machines increases their product quality without sacrificing profits.

The other large and growing market for used and reconditioned manufacturing equipment is companies who do not have the investment capital required to purchase new manufacturing equipment. Companies that fit into this category are located worldwide, but are predominantly based in developing nations. Latini has experienced a growing demand for reconditioned lollipop forming machines in South America, Asia and the Middle East.

However, being in the market for second-hand equipment does not mean that these companies are willing to sacrifice quality. Latini and Hohberger Products Company, also a division of LMC International, have developed a re-conditioning program where the machines are completely stripped, overhauled and cleaned, all worn parts are replaced with new ones, and the customers are given the option of incorporating the latest technology advancements.

LMC International receives machines for reconditioning from two sources: companies reconditioning their own equipment, and machines taken as trade-ins on new production equipment, which are then rebuilt and offered for sale by LMC.

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