EuroAuctions’ facility in Jebel Ali.
Euro Auctions Dubai sale to proceed in June
01 June 2020
Euro Auctions permanent auction site in Dubai, specialising in the sale of construction machinery, agricultural equipment, and industrial plant, will hold a ‘live’ online sale, behind closed doors on June 29 in light of the Covid-19 pandemic.
Euro Auctions has made the decision to progress with the Dubai sale using the format recently put in place at its permanent sites in the UK, Germany and Portugal. With consignors committing to the upcoming auction in June, machinery is already in the Dubai sales yard ready for sale, Derek Bleakley, General Manager of Euro Auctions Dubai, told Gulf Construction.
With consignors trusting Euro Auctions to gain best price for their equipment and machinery, a closed-door sale conducted live via the internet will provide the same excitement as the real sale, he said. Video clips and photography of all lots for sale will be streamed live on the Euro Auctions’ online sales platform, giving bidders the feel of a live auction.
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A diverse choice of machines will be offered at the auction. |
Controlling the sale in ‘real time’, a team of ‘live’ auctioneers operating from the US offices will be the ‘glue’ that bonds all the elements of the sale together, he said. The IT department at the company headquarters in Northern Ireland will facilitate the event, providing the platform for the sale.
Bleakley commented: “In the last 24 months, we’ve been working hard to get to know consignors and buyers in the Middle East and to establish good working relationships and trust. We have regular consignments of good stock coming through the auctions, in the right quantity and of a quality that buyers want. And in doing this, we are getting happy customers who are returning to Euro Auctions to sell and buy at each sale. This has contributed to an uplift of over 100 per cent in all statistics over the same sale in March 2019. So, maintaining momentum with our programme of sales is vitally important, and after listening to our customers’ comments, the consensus was that we proceed with this auction.”
Bleakley said the company believes the 100 per cent increase in sales and activity seen across the board over the last 12 months is an indicator of customer satisfaction.
“I am often asked what sets Euro Auctions apart from its competitors? I think it is because we are realistic in our valuations of machinery and equipment, as opposed to over-valuing, only to disappoint consignors when the hammer goes down. That alone brings repeat consignors. Secondly, our transparent commission structure lets our consignors know exactly what they are going to pay in costs before the sale, with no hidden charges, for ancillary items such as fuel, washing, unloading, and loading, just to name a few,” he remarked.
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Demand for quality equipment is growing. |
With the industry wondering what will happen after the pandemic, one can ask what will be the first indication of a healthy market? With OEMs halting the manufacture of new equipment and machinery, the used market will possibly burgeon, with prices strengthening for good, late and low hours machines, he said.
According to Bleakley, when construction and infrastructure projects resume after the pandemic, there may well be a shortage of machinery due to the hold put on fleet replacement programmes and the sale of plant to generate cash flow. Hire businesses will want to replenish their stock levels, as they do on a regular basis. Construction companies will be buying for projects, and new equipment will be in short supply. As a result, buyers will be looking to the used machinery markets and auctions, which is good for sellers, he added.
Bleakley concluded: “The sale on June 29 is much anticipated in the region, regardless of the Covid-19 pandemic. The market was improving in 2019 and into early March 2020. Growth was positive, demand for quality machinery was showing green shoots, and the demand was evident. Euro Auctions has the confidence of the consignors, and the trust of the buyers to present for sale some of the best used equipment on the market.
“Again, since mid-2019, there has been a marked ‘up-take’ in the market for good machines, however contractors and rental companies in the Middle East have been buying relatively low levels of new machines for the last four to five years and as a result stocks of plant are aging. Not buying through dealerships, buyers have turned to auctions for good late year machines as well as new unused stock. And finally, whilst we are planning to run an online auction on June 29, depending on restrictions and recommendations at the end of that month, we are not ruling out making it a live event.”
Other Euro Auctions sales have been scheduled for June 24 in Lisbon, Portugal; June 25 in Brisbane, Australia; June 26 and 27 in Dromore, Northern Ireland; and July 8 and 9 in Dormagen, Germany.
Euro Auctions has been conducting unreserved auctions of industrial plant, construction equipment and agricultural machinery since 1998 and today holds more than 60 major auctions every year, including several off-site sales for leading plant hire companies, for cessation of trading, retirement sales as well as stock and fleet rotation.
With its head office located in Dromore, Northern Ireland, it has 10 permanent auction sites around the globe in the UK, Germany, Spain, Australia, and the US, with new facilities added in 2017 in the UAE and Hong Kong. All sites are fully operational always, with permanent offices, auction yards and full-time staff. Euro Auctions also markets equipment globally to more than 150,000 buyers in over 95 countries plus offers a robust, secure and free-to-use online sales platform.
