It’s a good time to be in the warehouse auctions game

6th Jun 2018

As the country’s blossoming economy goes from strength to strength, increased commercial activity has seen a rise in machinery and products come through Gregsons’ Warehouse auctions category. Businesses of all shapes and sizes are contributing to this trend, here we take a look at some recent examples.

Amazon launches in Australia

 

The American e-commerce company’s recent launch in Australia is already making waves in the country’s online shopping landscape. As seen with their track record in many other international markets, Amazon were happy to undercut existing Australian department stores on popular products – particularly electrical goods – in order to gain an instant foothold. But such a gigantic operation requires significant infrastructure. Many big retailers take their warehouse game very seriously, and investment in multiple properties for distribution is essential, plus necessities such as forklifts, pop up offices and toilet blocks, and storage solutions such as pallet racking and shipping containers.

Amazon is also one of the market leaders in warehouse automation, aiming to save millions through optimisation and efficiency. Whilst immediate solutions such as electric stackers and semi electric straddles are readily available, Amazon’s long term vision sees an increasing investment in software and robotics to eventually replace workers altogether.

The Rise of Startups

 

Thanks to the country’s strong economy, people are confident to flex their entrepreneurial muscles and invest in ideas. A recent investigation by Forbes identified the east coast as the area with most startup activity. It crowned Sydney as the largest of the Australian startup hubs, with 35% of new business, with Melbourne and Brisbane in second and third with 14% and 9% respectively.

Tech startups in particular have seen huge growth, with many experiencing success in the global marketplace. Australia’s physical distance from some of the world’s biggest marketing areas such as Europe and America was once considered a huge drawback for startups and those who would seek to invest in them. But the rise of the internet and digital communications has seen location become less of an issue, allowing tech companies easier access to foreign markets.

This positive boom for startups does come with its own obstacles, and investing in a production and storage infrastructure is a big one. This is less of a concern for tech companies, but it is a major concern for those with a physical product. If your initial office or warehouse set up isn’t planned properly, the ongoing costs can be crippling to long-term development. Minimising overheads is paramount.

Warehouse auctions

 

Such necessity means businesses big and small are turning to online auctions to source equipment and storage solutions. In a recent auction by Gregsons, 40ft dome container shelters were selling for as little as $1,500, a quick and cost effective alternative to having to develop an entire property/building.

One company’s redundant assortment of equipment is a potential gold mine for the new kid on the block. Vehicles such as forklifts and container handlers can be purchased for a snip of the price they would be worth brand new. In our current forklift auctions, starting bids can be as low $2,000; a huge difference in comparison to buying brand new. It’s an exciting time to be in business and an exciting time too at Gregsons, as we predict even more activity in our warehouse category.