Production Equipment Appraisals
Appraising manufacturing production equipment requires an understanding of the manufacturing process and current market conditions. It’s also important to remember that every factory, manufacturing plant or production facility is different.
Our senior equipment appraiser Jack Young respects and appreciates that. NorCal Valuation equipment appraisal reports are comprehensive and defensible and present a clear connection between the equipment values presented and the manufacturing operation. Our appraisals are independent, defensible in court and USPAP compliant.
Considering Market Conditions
Understanding how major economic trends influence the value of specific manufacturing equipment and being able to communicate these trends in a clear manner is a key part of our valuation process. For instance, in a valuation for a large plastic manufacturing plant, we addressed how fluctuations in the automobile industry had recently created significant changes in the plastics industry, ultimately effecting equipment value.
Valuing Manufacturing Equipment
When we value your factory or manufacturing facility, we consider each piece of equipment in context of the whole manufacturing process and, when appropriate, we research and review installation costs, which can vary depending on the equipment involved. We take into consideration maintenance and repair/replacement costs, and we pay special attention to specialized equipment in particular industries.
For instance, in producing a tax appeal valuation for a national glass production facility, we determined that using the standard Sales Comparison approach methodology for the vast majority of the production equipment would be unsuitable: in some cases, because of significant installation costs associated with most of the items or, in other cases, because so much of the equipment was best considered “consumable.” These “consumables” were component parts in the specialized coating line process and represented approximately 35% of the cost of a new coating line. Following standard equipment appraisal practice, we used a weighted average life analysis to assign a Normal Useful Life in order to calculate a value that was accepted by the county Board of Equalization.
We also understand the factors involved in appraising automated machinery. Computer Numeric Controlled (CNC) automated machinery appears on numerous asset from substantial manufacturing operations of all types to specialty custom machining shops. We realize that many CNC machines can be used in a variety of different applications nationally and internationally, while other CNC machines are relatively unique with a more limited marketplace, and that an integral part of any machine tool, whether CNC or not, is the associated tooling.
Our machinery and equipment appraisal reports are the work of an Accredited Senior Appraiser (ASA) in Machinery & Technical Specialties, the designation awarded by the American Society of Appraisers to educated, experienced and qualified individuals in the specialized equipment appraisal industry.
We appraise all manufacturing equipment, production & job shop equipment — and all related equipment — including:
- Boilers
- Blenders & Mixers
- Centrifuges
- Coolers/Chillers
- CNC Machines of All Types
- Drills
- Dryers
- Edgers
- Generators
- Grinders
- Groovers, Polishers & Smoothers
- Heat Exchangers
- Lathes
- Machining
- Metal Working
- Mills
- Mix Tanks
- Optical Equipment
- Planes
- Plant Equipment
- Pressure Vessels
- Process Equipment
- Reactor Tanks
- Routers
- Spindles
- Stainless Steel Tanks
- Turbine
- Vessels (pressure rated tanks)
- Vertical Mills
- Woodworking