Equipment utilisation, also known as asset utilisation, measures the usage and efficiency of site capital equipment and machinery. It helps businesses increase worksite productivity, thus reducing equipment rental rates (if applicable) and production delays.
Yet, under-utilised and aging asset management are sometimes opposing business strategies with the markets becoming highly competitive.
Credit Capital CEO Alister Clare shares how he reaped benefits from effective asset management programs. According to him, “In my experience, predetermined operations, such as shifts in production footprint, facility extension, cost-cutting programs, or infrastructure improvements, account for almost 90% of idle assets. Therefore, to minimise waste and profit loss, resolving all these considerations is crucial.”
On the grounds of these circumstances, the following are central points to help you maximise value from your under-utilised assets.
In this latest blog, our guest expert author Christopher Clark outlines some examples of how from an individual consumers perspective you can apply some of the commercial methods businesses adopt to prolong the lifecycle of your consumer assets.
Instead of throwing out a piece of under-utilised equipment, there are many options for repurposing it. For example, from a consumer perspective converting your mobile phone into a surveillance camera, using it as a remote media control or retooling it as a backup emergency phone are only a few suggestions. Similarly, old tablets may be used as a music player, repurposed as an e-reader, converted into a standalone cookbook, or used as a secondary display for a computer.
In doing so, you make the most out of your assets and, more importantly, contribute to the betterment of the environment by reducing waste.
Refurbish And Resell
Refurbishing and reselling your under-utilised asset is an excellent way to make the most value out of it. For instance, you can make something out of a seldom-used computer by cleaning, repairing, and reselling it. But, before you do so, evaluate the functionality of your assets before reselling them. Some equipment may even be worth more and could earn you more money.
Redeploying means identifying existing unused equipment to be redeployed for a particular business or work process. The process is achieved by matching the equipment needed for the project to the existing underused equipment. The asset managers will assess how the available under-utilised assets can be made helpful with minimal modifications to the project. What type of assets do you have lying around your home or business that could potentially be redeployed?
Opt For Discount And Trade-in
There are manufacturing companies or distributors that accept trade-ins or offer discounts for equipment when clients buy something new. In this process, organisations may consider whether the assets that would be declared under-utilised may be resold to a manufacturing company for cash or accepted in return for a discount on purchasing new equipment.
Alternatively, some qualified vendors might be able to find potential buyers for these valuable assets. However, when significant purchases are arranged at a low-cost trade-in or discount to the retailer, this strategy can help negotiate.
Under-utilised Assets Are Valued At LUP Global—The Champions Of Asset Management
In businesses that operate in dynamically developing markets, the proportion of assets declared as under-utilised or obsolete could be higher. In these situations, finding the best compromise between a business’s different goals, such as introducing innovative products or becoming the leader in their field, and the possibility of losing money because of an asset is critical.
LUP Global has a holistic approach and end-to-end asset management strategies tailored to your unique business needs, allowing you to control your investments and improve their efficiency effectively. On top of these, our overarching motivation is making the planet a better place to live —for us and for the generations to come.