Ritchie Bros sources global used mining equipment

Ritchie Bros. is a leader in the used equipment industry. The demand for the company’s sales platform is increasing amid supply chain issues.

Every month, thousands of people worldwide buy equipment through Ritchie Bros.’ sales channels.

Ritchie Bros. is a world leader in the used equipment industry, and the demand for the company’s sales platform continues to increase amid global supply chain disruptions.

Original equipment manufacturers (OEMs) play a critical role in the Australian mining industry as they engineer and innovate equipment to keep the sector turning. However, as global supply chains tighten, it’s important mining companies and contractors are able to source machinery through different avenues.

Since the beginning of the COVID-19 pandemic, the used equipment market has experienced strong buyer demand, filling the global supply chain gap for new equipment.

A frontrunner in the used equipment industry, Ritchie Bros. has cast the net wide, leveraging its connections to source machinery solutions from across the globe.

Every month, thousands of people across the world buy equipment at Ritchie Bros.’ unreserved auctions, it’s 24/7 online retail channel Marketplace-E, and through private treaty. To complement the equipment, the company provides the services and information needed to buy with confidence.

“We’re in every continent in the world,” Ritchie Bros. Asia Pacific sales director Finlay Massey told Australian Mining. “We’re located in South America, North America, Europe, South-East Asia, Africa and we’ve got full time employees in all of these areas.

“This gives you the ability to inspect equipment in the various countries, do the local negotiations on the purchasing side and do physical inspections, as well as supply photos and downloads and all the necessary information the buyer would need.”

It’s not only about sourcing the equipment but having the ability to get it to Australia quickly. This is where Ritchie Bros.’ global shipping and importing expertise comes to the fore.

“We sourced a very low-hour Caterpillar 994K wheel loader from Europe and shipped it into Australia which ended up going to a major iron ore miner. That arrived in two months,” Massey said.

“A customer recently enquired looking for a low-hour late-model Caterpillar D10T dozer. We sourced one in Japan and can have it here in five weeks.”

Ritchie Bros.’ sourcing capabilities not only come from the company’s global footprint but also its understanding in commodity markets.

“Commodity prices aren’t just domestic to Australia, they’re global,” Massey said. “Historically, Indonesia has been a very strong sourcing place to find equipment for Australians. At the moment, coal prices are up, their demands up as well so the used equipment supply from Indonesia has decreased compared to where it was 12 months ago.”

While rising commodity prices create their own unique buying behaviours, they typically lead to higher cash flow for mining companies, creating greater appetite for growth and increased desire for equipment. This puts Ritchie Bros. front and centre.

Ritchie Bros.’ 2022 Australian Unreserved End of Financial Year (EOFY) Auction is taking place from June 22-23 and stands as the perfect opportunity for companies to capitalise on any outstanding tax opportunities.

Massey said the EOFY auction is a popular event because companies will be looking to make some closing deals before the new financial year begins.

“Many companies don’t know their current financial situation until very late in the financial year,” he said. “So having our auction at the end of the financial year gives them an opportunity to have their facts and figures right when looking to buy or sell.

“You’ve got some companies that need to offload assets at that time of year, and you’ve got others that need to acquire assets in order to take advantage of the 100 per cent write off which is on offer.”

As Ritchie Bros. continues to expand its global footprint, the company’s sourcing capabilities will only increase, enabling used equipment to be located and shipped more quickly.

And in a mining industry where speed and efficiency come first, Ritchie Bros.’ sales platform is only going to grow in popularity.

This feature appeared in the June issue of Australian Mining.

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