Used Manufacturing Equipment Market Update: What’s in Demand and What Isn’t

By Gary A. Stone, ASA, Manager at Swartz and Associates

Recently, I had lunch with an associate who asked me, “How is the market?” My first response was, “Which one?” That led to a short conversation about the manufacturing industry and, ultimately, the topic for this blog. When it comes to used manufacturing equipment, there really isn’t one market. Demand can vary significantly depending on the type of equipment, industry, age, technology, and even the particular make and model.

Reshoring

Reshoring, the practice of bringing manufacturing operations or production back to the United States, is one factor influencing today’s manufacturing equipment market.

A recent Reshoring Initiative survey found increased reshoring activity among both original equipment manufacturers (OEMs) and contract manufacturers, with 63% of surveyed OEMs planning U.S. capital investment through 2027. The reasons extend beyond tariffs and geopolitical concerns. Manufacturers reported benefits from reshoring that included faster speed to market, improved delivery performance, and lower logistics costs. As manufacturers expand domestic capacity, this investment can create additional demand for machinery and equipment.

However, that demand is not evenly distributed. In the used CNC (Computer Numerical Control) market, certain 5-axis machining centers, multi-spindle turning centers, large horizontal machining centers, and wire EDM equipment are experiencing stronger demand, while more readily available 3-axis vertical machining centers, older CNC lathes, and CNC routers have faced softer market conditions.

Higher new equipment costs are also making quality used machinery an attractive alternative for manufacturers looking to add capacity. Buyers continue to place a premium on equipment that is productive, well maintained, supported, and easily integrated into their operations.

Market Research

At Swartz + Associates, Inc., these trends reinforce why market research is such an important part of the appraisal process. Age and original cost provide useful information, but they don’t necessarily tell us what an asset is worth today. We also consider specifications, conditions, technological obsolescence, marketability, and what is actually occurring in the secondary market for that particular type of equipment.

As reshoring, technology, and capital investment continue to influence manufacturing, some equipment may benefit from increased demand while other equipment continues to depreciate.

If you’re trying to answer that question for your own equipment, whether you’re planning a sale, securing financing, settling an estate, or simply need to know what your assets are worth in today’s market, we can help. Swartz + Associates has been appraising machinery and equipment for many years, and our valuations are grounded in current market research, not just age and original cost. Give us a call or send us a note, and let’s talk about your equipment.