Pandemic Pricing Effects Used Heat Treat Furnace Values
INNIO Waukesha Gas Engines in Waukesha, Wisconsin, USA a division of GE closed down last year and the remaining assets were auctioned off. Included in the auction were several heat treat furnaces, the centerpiece being a Surface Combustion gas fired batch IQ furnace line with working dimensions of 36” X 48” X 36”. It was truly shocking what buyers paid for the equipment.
For instance the batch IQ furnace sold for $162,500 USD, the temper for $57,000, a dunk spray washer for $30,000 and a JL Becker box furnace for $42,500.00. When the buyers premium of 20% is included along with rigging out costs the final price for the batch IQ furnace tops out at over $200,000 USD. This represents an enormous premium when you take into account that this is an older furnace with outdated controls and we would have to assume that the Pandemic is responsible.
Lock downs and overly generous government handouts have lead to disruptions in the supply chain, longer delivery times and inflationary pressures which have all caused new equipment pricing and deliveries to increase substantially in 2021. We would have to assume that this in turn is spilling over into the used equipment market as well. One auction does not make a trend though-we will keep you posted.
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