Crane Auctions Australia (CAA), a joint venture between MCT Equipment and All Cranes Sales, is set to give the crane auction industry a shakeup. Anthony and James Grosser, along with Todd and Peter Shelton from All Cranes Sales, explain more.
“Crane Auctions Australia is a joint venture between two of the largest used crane specialist companies in Australia. Between us, we would be one of the largest holders of used cranes and have extensive experience in the used crane sector,” said Anthony.
“For some time, we’ve been monitoring how the industry’s requirements have evolved and changed and seen how the incumbent auction businesses have been addressing the current market. We believe the changing requirements within the crane industry will allow a specialist auction platform like ours to grow.
“The industry likes the speed and cleanliness of the auction process, and many companies are wanting to follow this process when they are divesting assets, but for some time we have been hearing the frustrations at the lack of understanding currently. Given the legalities and complex compliance of the crane industry, having auctions lead by experienced crane experts will give clearer information to both the buyer and seller
“As always, when you hear genuine frustrations about a situation you sense there is an opportunity. When customers are increasingly looking to the auction model to divest their assets, this presents opportunities for businesses like ours,” said Anthony.
Crane Auctions Australia is approaching crane auctions in a very different manner, focusing on structured auctions based around fleet management requirements.
“Both MCT Equipment and All Cranes Sales will continue to sell used cranes, so our approach to crane auctions needs to be very different, and it will be. We are talking about managing an alternative sales process for crane companies.
“When it comes to larger crane companies wanting to divest key assets, we will be able to advise them of the expected value of the assets and work with the seller to ensure they maximise the sales process to ensure fleet sales are planned through the year to ensure maximum return,” said Todd.
“The auctions will be structured to ensure we have a strong cross spread of machines, not only through manufacturer but also class and range, we won’t have an auction with 25 100t machines fighting against each other for a sale, but controlled sales and classes to ensure strong quality sales for all involved,” said James.
With both MCT Equipment and All Cranes Sales being experienced in the used crane industry, Crane Auctions Australia will have a marked advantage said Todd.
“The fact that MCT Equipment and All Cranes Sales will be actively trying to sell the machines if they aren’t successful in an auction, provides a more rounded sales process for customers.
“Over the years we have seen customers mismanage used sales in many different ways. The used sales business is more than posting to social media, some machines sell in different states better than others, others are best sold overseas, the arising of CAA gives All Cranes and MCT a full sales option process
“A rounded sales process will reassure customers that we understand the market and the values of their assets. We’re not placing a crane into an auction and then a month later re-auctioning the same crane again. We will not be placing multiple Franna cranes of the same size into one auction as an example, which in turn has the effect of devaluing fleet size bringing the value of that whole category down at a huge rate, which is also happening.”
The detail and research that goes into purchasing a machine isn’t replicated at the end of the machine’s life, there are many different paths to move a used crane but knowing the right path for that specific machine only comes with years of experience said Peter.
“MCT Equipment and Crane Sales are established and trusted brands and they’ve formed a joint venture to create a third trusted brand for both east and west coast. Essentially, we will not be operating in each other’s back pockets, which is positive for the market.
“Overall it is about ensuring the used crane market creates value for both buyers and sellers and maintaining market value. A poor managed end of life plan can affect more than an owner’s fleet, each sale sets a precedence for the next sale and our mission is to ensure we keep these strong and consistent.”
Crane Auctions Australia will be releasing details of its first auction scheduled to be held in May. The website is live at craneauction.com.au