What started out as a social mission to bring together suppliers and customers of used machines, has now grown into a circular economy mindset within the process industry. The Surplus Select circular economy initiative, founded in 2001, gives start-ups, R&D departments and pilot plants the opportunity to achieve limited-budget production by using pre-owned processing machines. "We started by offering very basic services, but now we have become a serious market player, and are being approached by large multinationals for the acquisition of high-quality, sustainable solutions”, says Rick Soepenberg, founder and owner of Surplus Select.
Owner Rick Soepenberg
Whether it’s machinery for the food, cosmetics or animal feed industries, Surplus Select has over 400 eye-catching machines at their 1500 m2 warehouse and 4000 m2 outdoor site in the Dutch village of Swifterbant; all waiting for new owners. According to Soepenberg, buying up large stocks of surplus machinery is a risky but nevertheless deliberate choice, as demand has not yet materialized: “I can offer plants a much better service as the machinery is removed quickly. The process for the selling party becomes much shorter if we take the strain. We sometimes have projects with more than 20 machines, one of which, perhaps, is not suitable for our target group. Surprisingly, we often find a buyer for that one, too.”
Social acceptability
Soepenberg started his company 20 years ago with the idea of developing a service that would obtain a large degree of social acceptability. He began documenting redundant machines that were due to come onto the market, sent periodic mailing lists to potential buyers and brought supply and demand together. Gradually, the owner changed from being intermediary to becoming a stock-holding wholesaler of used machines. The role of intermediary shifted from 90 to 10 percent, and the focus moved increasingly towards stock: from 10 to the current 90 percent. And what a result. Not only the stock, but also the quality increased. The range of steel machines has largely been replaced by stainless steel models, and Surplus Select has seen both its network and brand awareness grow.
Refurbished
Growing awareness
Yet there are still companies that are reluctant to incorporate used machines into their production process. Mistakenly so, according to Soepenberg. According to him, used machines are often still in perfect condition and can be maintained to last for decades. “Many companies are still not doing enough, morally and financially, but I do see a growing awareness within society as a whole.” He does not rule out a future trend, where reused machines are fully accepted. Thanks to the company’s solid network, it is becoming increasingly successful in purchasing machines fewer than two years old. Soepenberg: “When the machines leave us, they’re in very good condition. The most important factor for our customers is that the machine is running perfectly. Then, age doesn’t matter as much. Of course, for complex machines, age does play a role with regard to maintenance and technology.” For this reason, the range held by Surplus Select consists of various types of machines, all with a used production time of between two and twenty years. However, A-brands and newer machines remain the most sought-after.
Some of the products on offer
Market segment
Surplus Select works closely together with manufacturers and local parties in the field of technical support, modernisation, parts and repairs. For example, the screw conveyor and machine factory Van Beek in Drunen, Netherlands, offers a buy-back guarantee on new machines in cooperation with Surplus Select. This cooperation with manufacturers is very unusual, as Surplus Select by the nature of its services, more or less discourages buyers from investing in brand new machines. According to Soepenberg, the opposite is true: “We do not fish in the same pond as the manufacturers, in fact, we even supply new customers. We focus on a different market segment than the Unilever and Friesland Campinas of this world, which have to meet the highest standards. The reason for purchasing a new machine often has to do with the production requirements for the latest techniques, customization, efficiency and hygiene. Used machines can no longer meet the latest standards.”
Increasing demand
The digital revolution has drastically changed our society. Developments are accelerating and new technologies continue to emerge. This also has consequences for the process industry and the speed with which machines are now considered redundant. As a result, Surplus Select sees the demand for used machines increasing all the time. According to the owner, this is mainly due to immediate availability and the opportunity to buy used A-brands at reduced rates. These are often approximately 25 to 65 percent cheaper than the average purchase price of a new model. But Surplus Select also offers added value in other areas. “We know the entire background of the machines and are familiar with their history. Moreover, we take time for our customers, personal attention is of paramount importance to us. Also, we are able to carry out large projects, so multinationals can find us. We can handle a couple of trucks loaded with machines, all at once”, says the owner, who outlines a bright, sustainable future where supply and demand for used machines are brought even closer together.
Author: Zamire Willems/CM Communication Support
