What's up with used equipment?

I've been seeing more and more notices about major auctions of used process and packaging equipment. That may not be too unusual in a down economy, but the thing that has me thinking about it is that so much of it is relatively late model equipment being sold out of plants in Mexico. What's up with that?

I have no experience with the Mexican used equipment market, but perhaps some of my readers do. One would think that if manufacturing in Mexico had all of the benefits that the American financial engineers thought, then in our down economy, more plants in the US would be closing rather than plants in Mexico. Have the benefits been less than anticipated?

Capital spending analysis has as one of its components the salvage value of the investment. Does late model packaging machinery sold used in Mexico have the same salvage value as it would have in the US? One could make lots of arguments about why it would not, but once again, I don't know. My curiosity is getting the better of me, so I'd appreciate your incite.

Is the increased availability of used packaging equipment hurting new machinery sales? If so, whose; sales from Europe, North America, South America or the Far East? Or, are the technology gains of new equipment depressing used equipment prices even more as packagers go after higher productivity? Does a used mechatronic machine depreciate at the same rate as did older mechanical machines?

Whatever the used equipment market is experiencing, at least we needn't expect to deal with a cash-for-clunkers program for packaging machinery - or might we?

Share you experiences with us about what is happening in the used machinery market - especially as it relates to Mexico. Thanks.

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