In the past, it was challenging to sell surplus outside of your immediate area. With the rise of the Internet and online marketplaces, however, businesses selling surplus assets both large and small can find a global market, creating new sales opportunities. Businesses in developed regions now have greater access to foreign markets, and growing economies in key regions like Asia and Latin America will spur investment in major industries and necessitate the purchasing of large capital assets.
This expanding pool of potential buyers gives your business more opportunities to maximize recovery on your assets.
Asian and Latin American Markets Poised For Future Economic Growth
Macroeconomic growth in the Asia Pacific and Latin American regions has made both destinations worthy of consideration as you look to sell your surplus.
China’s economic boom over the last few decades has been well-documented, but the truth is that there are plenty of developing countries – such as India, Malaysia, and Thailand – that are also experiencing considerable economic expansion. Projections from the International Monetary Fund show that the Asia Pacific region can expect 5.5 percent growth in 2016.1
Developing economies will be key buyers
of surplus assets.
Key Asian industries include aerospace, machinery production, life sciences, energy, and manufacturing.3 As these industries continue to be the driving force behind the region’s growth, businesses will be looking to invest in new assets that help them continue to innovate. This is a great opportunity for sellers in developed economies, as these nascent companies will comprise a market of willing and able buyers of surplus.
Latin America’s economy is also growing, and though it may not be at the same rate as Asia, research shows that developing countries in this region will still be a major source of demand for manufactured goods. Consumption by developing countries is expected to more than triple from 2010 to 2025. By 2025, developing countries could represent almost 70 percent of global demand for manufactured goods.4
Currently, major industries in Latin America include oil and gas, mining, and agriculture.5 All of these are playing a major role in this developing region, and as these industries continue to strengthen, the opportunities that businesses in developed countries have to sell surplus there will only grow more numerous.
Expanding into New Markets with a Global Partner
Assets that may be considered outdated in advanced economies could be very valuable in developing regions. These regions are home to asset-intensive industries in growing economies that will be looking to purchase the equipment and machinery you are selling.
Selling surplus in international markets can be daunting if it’s not one of your core competencies. Partnering with a surplus asset management provider can help you access these markets and maximize your recovery for surplus assets. Here are some key features your partner should offer:
- Multichannel marketing and sales strategies tailored to local markets. An expert provider will leverage multiple marketing channels to reach potential buyers of your surplus no matter where they are in the world. And it will tailor these marketing efforts to regional nuances that your organization may not know if it doesn’t already do business there.
- Knowledge of compliance and legal risks when selling surplus abroad. Data privacy, export controls, and trade regulations govern international sales. An expert partner can help you navigate these complex laws, on top of vetting buyers to ensure that your surplus doesn’t go to groups or individuals connected with illicit activities.
- Expertise in local markets and customs. An effective global provider will have local and regional coverage in many countries to support your global operations. This coverage allows your provider to understand local market, buyers, language, laws, payment processing, taxes, and import/export regulations.
Marketing and selling your surplus to businesses in developing countries can be a great way to widen the market for your assets, increasing your bids and recovery. By working with a global partner who can manage international surplus sales, you can free up capital for reinvestment in your business while avoiding costly compliance risks and logistical challenges.
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