How to Select the Right Second Hand Manufacturing Equipment

Surface mount technology (SMT) machines are the biggest investments when starting an electronics manufacturing services (EMS) company. Hence, many firms are considering the idea of investing in second hand SMT machines, which are the best alternative to costly new SMT machines

- Baishakhi Dutta

The current market cost of SMT machines ranges between US$ 50,000 to US$ 300,000, which is a massive amount to invest for a startup. With the uncertainty of the returns on investment (RoI), a lot of thought has to be given to such high expenditure. Many EMS companies, therefore, opt for second hand SMT machines which are available for just 30-40 per cent of the price of new machines, thus cutting down their initial expenses considerably.

Another option is to buy reserviced machines. These used machines are taken back by the vendor and stripped down, all the worn out parts are replaced, and the machine is re-assembled. But this process is generally more expensive than purchasing used SMT machines.

Second hand equipment in demand

The most common second hand equipment being sold are pick-and-place machines, reflow ovens, screen printers, etc. Some pre-owned test equipment are also sold, such as AOI or SPI, but their quantity is less as they are more technology-dependent and one needs updated software. Again, while the price of new pick-and-place machines is high, one can get some really good deals on pre-owned equipment. The demand for other used SMT machines is relatively low. Alok Gupta, director of Prosem Technology India Pvt Ltd, says, “Today, when the pressure is to reduce manufacturing costs, sometimes it is a good idea to explore the option of pre-owned equipment.”

When it makes sense to buy second hand equipment

The biggest benefit of purchasing used SMT equipment is the lower cost. Especially for new entrants into the industry, buying a second hand SMT machine is a big boost, as they can enter the business with lower capex.