2011 Industrial Sales Market Trends New Mexico

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 3, 2012 -- Report submitted by Brian Page, Marketing Manager- GSA Projects & Compressed Air Systems at Wisco Supply in Albuquerque, NM. Wisco Supply is a forty year old small business and provides wholesale industrial supplies and equipment to the private and public sectors of New Mexico and West Texas. Wisco Supply is an Authorized Distributor for Gardner Denver and Cleaver Brooks.

2011 Buying Trends:

For the compressor division at Wisco Supply, 2011 was the year of reactive buying and capital restraints by our customers. An estimated 60% of all rotary compressor sales out of Albuquerque were based on critical replacement needs. The identified cause for the current buying environment can be traced to a decrease in customer spending for perceived non-essentials. These cut backs have included equipment service and preventative maintenance items. Another identified cause is based on companies pushing the limits of their existing equipment leading to sudden failures that contributes to a reactive purchase by the customer.
Current Market Conditions:

The current economic environment has resulted in more company’s competing for less business. The result has required winning companies to fulfill orders faster with shorter production times. Combined with fewer profits, increased operating costs and reduced capital expenditures, existing equipment such as air compressors are being pushed beyond their critical limits. Another large shift in the market is the steady increase of used and refurbished equipment sales. Companies seem more willing to compromise warranty and new product assurances for the upfront savings of used equipment. These buying behaviors are being influenced by budget constraints and stimulated by a flooded market of used equipment. Aggressive used equipment brokers are even marketing to the end user through a multitude of sales channels and some are even providing limited warranties or trade credits. Several industry reports indicate more than a 60% increase within the used machinery market over the last three years. However, not all used equipment is coming from recent purchases, several companies continue to consolidate their operations and have utilized the extra assets at other locations to reduce large capital expenditures even further.

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