A New Focus on Used Equipment
Gary Alexander, SEC/N, Paradise Valley, Ariz. -- Semiconductor International, 7/1/2000
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With annual worldwide sales of used equipment and related services approaching $2B, and a potential savings over buying new equipment exceeding $1B, companies can no longer afford to ignore this segment of the industry. But how do semiconductor and equipment manufacturers, whose core competencies are making chips and new equipment, successfully participate in the used equipment marketplace? Most don't - at least not effectively!
To be effective, companies must develop a comprehensive knowledge of all segments of the used equipment market. That means they must know when, why and how chip manufacturers worldwide buy and sell used equipment. They need to understand who remanufactures used equipment, their technological competencies and the services they provide. They also must understand the role of the broker, which ones are reputable and how to pick the right one for the right occasion. And they must be knowledgeable about the companies that provide parts, installation, decontamination and containment services. Most importantly, they must be well networked.
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In that case, the more inquisitive reader probably will ask, "Why aren't more companies networked?" There are several possible reasons:
- The cultures in some countries preclude companies, especially competitors, from consulting each other.
- Management is unable to provide long-range forecasts of equipment availability and needs. Networking can still help these folks, but then so can luck!
- Management is unwilling to provide sufficient staffing to be anything but reactionary.
- Management doesn't understand how the used equipment segment works and consequently has no proactive strategies.
- Management tends towards isolationism and arrogance, and feels reaching out is a sign of weakness.
I'm sure there are other reasons as well. But whatever the reason, the used equipment segment remains one of the most underestimated and misunderstood opportunities facing semiconductor and equipment manufacturers today.
To help bridge this gap, the Surplus Equipment Consortium/Network Inc. (SEC/N), with the support of the SEMATECH Surplus Equipment Council, SEMI and Cahners Business Information, is striving to provide information and educate companies worldwide. SEC/N is the trade association for the semiconductor used equipment industry. It sponsors member conferences throughout the year, where other interested companies are invited to participate in open sessions and receptions; and also staffs information booths and conducts open seminars at SEMICON and other trade shows worldwide. For those who are unable to attend these seminars, Semiconductor International plans to establish a monthly feature on used equipment. SEC/N also provides a Web site for companies looking for information, and help in locating reputable equipment, at no charge to the requester.
For more information on these programs, contact Gary Alexander at galexander@secninc.com or SEC/N's Web site (www.secninc.com).
