Asset Disposal Best Practices
Asset Disposal: Best Practices
Depending on the process type, asset disposal can be an issue most organizations don’t like to deal with unless there is some cost offsetting value.
Pre-recession, value was not difficult to receive especially for forklift equipment. At that time the scrap industry paid well for steel, regardless of the asset condition, and everyone could dispose of that “old truck” and cover all costs. Unfortunately, post-recession, scrap steel value decreased below asset value making the disposal process more complicated and less lucrative. Today there are a few different options depending on your need:
- Scrap Yard: To send an asset over to the scrap yard for destruction. This option is often the most expensive but may be required depending on the condition of the equipment. Due to the EPA requirements for chemical disposal you will most likely need to contact your material handling provider to properly dispose of this asset. Costs associated with this method can vary depending on asset height, transportation and additional equipment needed to remove the asset.
- Wholesale: Disposal opportunity utilizing a wholesale vendor who is willing to purchase an asset or haul away at no cost at a chance for a second life. Most wholesalers will require these assets to be operational and in reasonable condition.
- Trade-in: Trade-In assets offset some cost of new or newer equipment. Trade for alternative model trucks that better fit the operation.
Today, asset disposal can be more difficult than it was in years past. However, your local material handling provider will be able to help you determine what is the best option for your business.