Effective Asset Disposal for Highway Contractors to Maximise Returns
In the ever-evolving world of highway construction, contractors often find themselves faced with the challenge of managing plant and machinery that is no longer required. This could be due to various reasons such as the completion of a project, the need for newer, more advanced equipment, or changes in the scope of work.
As businesses grow and evolve, they often acquire new assets to support their operations. However, this accumulation of assets can lead to a lack of physical space within the organisation. By disposing of unnecessary or outdated assets, companies can free up valuable space that can be used for other purposes.
Asset disposal is also a great way to generate capital for businesses. Cash flow is vital for the smooth operation of any organisation, and having a surplus of capital allows for greater flexibility and financial stability. At the same time, highways contractors are contending with increasing competition in the market and as more companies enter the sector, there is greater price pressure, meaning they must find innovative ways to deliver financial returns.
By selling assets that are no longer needed or are underutilised, highways contractors can generate capital that can be used to re-invest into their business, such as new technologies, expanding into new markets, or even paying off debts.
We also remind our customers of the importance of environmental sustainability when dealing with surplus plant and machinery. Recycling or repurposing equipment can significantly reduce waste and minimise environmental impact. Asset disposal specialists can advise contractors on the best practices for recycling or repurposing their assets, ensuring that they align with environmental regulations and contribute to a greener future.
Asset Management
Businesses are already routinely assessing the condition and performance of plant and machinery as it helps them determine if they are ready for disposal. This also helps to identify assets that may be underutilised, or no longer aligned with business needs. Regular reviews enable proactive decision-making regarding asset disposal, replacement, and upgrade. Working with an asset disposal specialist takes this one step further by linking asset assessments with a clear route to market for those that are no longer required.
Over the years we have established networks of potential buyers of used plant and machinery across the UK and Ireland. We can connect companies with these networks, guiding them towards those who are specifically interested in certain kinds of assets. Access to a wide range of potential buyers increases the chances of achieving a competitive price.
Auctions are a common route to market for asset disposal and commercial asset disposal specialists will have well-established platforms in place. Online auctions also have the benefit of being open 24/7, with options to set reserves and access a global audience. BPI also provide additional services including cataloguing, marketing, bidding, and post-sale processes, ensuring a smooth and hassle-free disposal experience.
High standards are vital in any industry, including asset disposal. This is the reason why we are guided by ISO best practice to standardise and regulate our processes and ensure transparency for customers. We currently hold ISO 9001:2015, the globally recognised standard for quality management. To achieve this a company must follow the rigorous requirements, including monitoring customer satisfaction, addressing risks, working to a consistently high quality, and maintaining reliable services.
Maximising value
Effective asset disposal can help maximise returns in the highways contracting sector. The fact that contractors are responsible for maintaining and managing a wide range of assets, including vehicles, equipment, and tools, means many are turning to asset disposal specialists for help.
This is because utilising the services of asset disposal professionals who have the knowledge and experience in managing this process can make it much easier. For example, they can assist highway contractors in assessing the value of their equipment, identifying potential buyers, and facilitating the sale process. This allows contractors to focus on their core operations while leaving asset disposal to professionals.
When done effectively, it helps contractors extract the maximum value from their assets. Once the decision is made to dispose of assets, contractors tend to expect quick turnaround times. The process from initial enquiry, through to auction listing and sale can be done in a matter of weeks.
In the highly competitive world of highways, many contractors are realising the benefits of a proactive approach and working with asset disposal specialists. These partnerships can efficiently manage their assets and maintain cashflow, which is crucial for running a healthy business.
Article by Kevin Gardner, Commercial Manager at BPI Asset Disposal Solutions.
