As we bid farewell to 2021 and welcome 2022, it’s an opportune time to dissect the year that was. For Pickles, and for the industrial industry, it was a year of booming sales, unexpected highs, and reinvention across various fronts in Australia.
As Covid kept raging well into 2021, individuals and businesses were forced to adapt and learn to live in a time of continuous change. However, the huge amount of growth across used asset sales was an unexpected and welcomed surprise. The previous year of 2020 was a huge year of expansion and growth, while 2021 exceeded expectations with a number of record sales. This unanticipated boom, in turn, has reshaped the industry. Sale prices for used industrial equipment and assets that were once considered astonishing, are fast becoming the norm.
Bernie Leen Demolition and Contracting and Griffith Express Transport are just two examples of companies choosing to sell at this optimum time, but there are many other examples. A substantial influx of interested parties is what has spurred a demand-driven supply network, and what will continue to propel it for the foreseeable future. Savvy business owners are quickly catching on and realising what they have in their fleet and, importantly, its current value. With that comes a desire to sell their business.
The premium prices which assets are attracting can be attributed to a number of facets, including the expansion and growth of the infrastructure industry – and, consequently, the need for resources.
The Adani Carmichael coal mine project is a good example which demonstrates the magnitude of work available. The hugeamount of business created in the construction space in central Queensland provides work for both local and interstate contractors, and subsequently work much further beyond, with contractors travelling from other states for the opportunities.
What’s more, data forecasting and media reports indicate that the demand chain is not slowing down any time soon, with companies advertising for contractors throughout the country for a variety of projects taking place now and in the near future.
Covid support packages have helped businesses stay afloat in 2021, transforming the industrial landscape from a governance point of view. Rent-free periods for landlords, as well as JobKeeper and JobSeeker packages, were some of the supports implemented by the government across various states which helped businesses weather the Covid storm.
According to recent figures, formal insolvency appointments dropped off by more than 50 percent. For any asset remarketer, a more substantial downturn would have provided more insolvency work, however the team at Pickles used this as an opportunity to direct focus on helping vendors explore a variety of solutions. This cast-out safety net provided business owners with flexibility and choices and provided those choosing to sell, an optimal environment for transactions.
Pickles is Australia’s leading marketplace for used industrial sales, with a large team of sales experts who are there to guide you through every step of the process. If you are thinking about selling your business’ used assets, contact Pickles today.