The Drop In Business

One thing to be said for the recent downturn in the mining industry….you can now pick up used mining equipment for a song.  In many cases, it is possible to obtain much needed like new equipment at a third of its original price.  With the US closing down so many coal mines, mining equipment is coming on the used market at drastically reduced prices, and may be picked up at any number of equipment auctions across the country.

The reason is basically a weakening in the demand for natural resources such as coal and iron ore, and industrial equipment manufacturers find themselves facing a glut, driven by a slow economy in China that has reduced the demand for coal and raw natural materials, as well as the equipment needed to obtain them.

Caterpillar is the world’s leading provider of earth moving machinery, and have begun noticing a drop in orders and slashed inventories. Revised business predictions have forced the industry leader to sharply trim its forecast for 2012 and 2013. With more coal companies shutting down mines in favor of natural gas, they have been forced to sell their existing equipment in order to generate cash and avoid costly maintenance and other related expenditures.

Auctions for this used equipment has drawn bidders from as far away as Egypt, Jordan, and Japan, and some from local vendors in West Virginia and Kentucky. One enterprising business owner picked up three 100 ton trucks for $300,000 apiece. Other buyers hoped to purchase vehicles for parts or hold on to them until the market has fully recovered.

LeaseQ contributes to the need for quality equipment at a reasonable cost by offering specialized financing and leasing options for mining equipment, as well as equipment serving most any other niche industry. Financing options are available at the lowest possible rates for those who wish to purchase, while leasing plans allow for the acquisition of top grade equipment for the least outlay of money, as well as the ability to trade up into the newer technology much sooner than what is traditionally afforded through normal financing channels.

Another Person’s Treasure

Leasing also frees up much needed capital for the business owner to be able to invest in other areas of his company, such as new facilities, additional employment, research and development, and any other areas of vital importance to the business owner.

Contact LeaseQ to find out what sort of financing and leasing options are available to you. LeaseQ is one of the leading providers of mining equipment leasing and finance options in the United States.