The other day we were watching an online video and an advertisement came on for Caterpillar, the multi-billion-dollar construction equipment company. For us it’s normal, of course, because we do quite a bit work doing heavy equipment appraisals. But there aren’t many companies like us, so why was this advertisement made? Who was it made for? Are there really that many people out there in the market for industrial equipment?
As it turns out, the answer is a definitive yes. There are tens of thousands of people across the country who are involved in the decision making that goes into purchasing heavy equipment. Most of the public has no idea who owns the construction equipment they pass on the road, so they’re certainly not aware of all the heavy equipment that is used on newly built roads, mines, and a thousand other construction sites. In today’s blog, we’re going to discuss some of the different types of agencies and organizations that require our services in heavy equipment valuation.
The most common place that the average person sees large construction equipment is when it’s working on roads. While the construction is, indeed, being done with their tax dollars, it’s usually the property of a private company that has been hired by a government entity to do the job. Private companies can also be in construction, whether it’s grading for a new neighborhood or building a skyscraper.
Why do private construction companies need heavy equipment appraisals? Sale of equipment is a big one, especially when true fair market value has to be established and blue book figures just aren’t cutting it. They might also need a great deal of construction equipment valuation if the entire company is being sold, or if the owner is putting it into a will or trust. Equipment appraisal is also important before a bank will accept it as collateral for a loan.
While most government road jobs are hired out to private firms, that doesn’t mean that the government itself is vehicle-free. On the contrary, there are millions of government vehicles out there performing hundreds of duties at every level of government. There are transport vehicles, snow plows, military equipment, street sweepers, and many more types of heavy equipment that are government-owned.
Why do government agencies require heavy equipment valuation? After all, they’re not creating wills or trusts, and they’re not selling the equipment to a partner as part of a business sale. The primary reason for used machinery values is due to budgeting, because government bodies will often need to know what their current equipment is worth before they’re allowed to purchase more. It’s also important that they know what something is worth before they sell it, because they’re looking for fair market value if they sell the equipment to the public.
When most people think of non-profits, they don’t think about them owning heavy machinery, construction equipment, or industrial equipment. What they fail to realize is that non-profit donation centers own large trucks, food banks have industrial-sized cooking equipment, and universities have scissor-lifts and Zambonis.
Why is it so important for a non-profit to have their industrial equipment appraisals performed? Non-profits are often scrutinized by the IRS to make sure that they really do qualify for non-profit status. Having proper equipment appraisal done can ensure that the IRS is kept happy.
CMEA Is Here To Help
No matter what business or agency you represent, CMEA can make sure you get a proper valuation of your heavy equipment. We can fly to you and perform a summary appraisal, or you can provide the information and we’ll do an online desktop appraisal. Either way, you’re going to get information that will hold up in court. Contact us today for a free consultation.