**** Renovation and price factors

Many people hold the view that for a certain period of time, Britain has experienced economic imbalances, with the manufacturing industry gradually shrinking and the financial services industry occupying the mainstream. Although I do not have the expertise in this field, I question the accuracy of this unconfirmed analysis. I recently wrote an article that begins with a description of the fact that some British goods were previously outsourced to China and are now being transferred back to the United Kingdom. Although I was mainly talking about the manufacturing industry in China, it also hinted that the transfer of manufacturing industries is a good thing for the United Kingdom.

One trend that I did not mention in the article is that the manufacture of various machines and equipment is moving in this direction: First, it is more durable than in the past; secondly, it can be repaired. A small number of people have been saying for a long time that resources are limited and we cannot turn a blind eye to the practice of throwing machines into bins due to damage to small parts. These people have sincerely and clearly advised from the outset that all machines should be manufactured to specific high standards in order to extend their useful life and be repairable.

Tobacco machinery refurbishment and its price factor

For many years, the tobacco industry's equipment has been using this approach. As far as I know, almost all tobacco machinery can use a long time, process a given kind of raw materials at a set speed and change mode, and establish a set of overhaul, overhaul, and refurbishment processes. As I understand it, if you find that such a machine can be overhauled or completely refurbished by any company, the only thing you have to do is provide a small wrench. Of course, on the other hand, destroying rather than keeping these old machines is also necessary to prevent the machines from falling into the hands of producers of non-illegal tobacco products.

The mixed use of new equipment and refurbished equipment is more common in the tobacco industry. To sum up, larger hood manufacturers have been able to provide more sophisticated new equipment that will increase production speed and efficiency, while smaller manufacturers use updated equipment technologies to upgrade refurbished machines, especially in some Control areas. For example, Demai said that HTMS is upgrading its old-generation, economical 5,000/minute cigarette maker.

Hash Rye, head of ATMS, a global services management consultancy based in India, responded that "whether or not to purchase more and more of these refurbished equipment will continue for a while", he said there is no reason not to. "Why throw away a good thing?" he said. "There is such demand because its value is obvious."

I asked Rye if the financial tensions caused by global economic problems had prompted tobacco manufacturers to buy or consider buying refurbished machines, he said. In fact, over the past decade, financial tensions have prompted tobacco producers to consider refurbished machines as replacements for new equipment.

However, Rye said that there are other factors that have triggered this change, not just economic conditions. Companies that offer used equipment and refurbishment services are dramatically improving the performance and quality of refurbished machines. "More importantly, the industry can now provide similar performance guarantees and after-sales services as buying new equipment," he said. "These factors have increased customer trust and created a win-win situation."

The growing demand for such refurbishing equipment is evident among small and medium-sized tobacco producers, and large tobacco manufacturers are gradually accepting it.

Demai said he believes that small companies have to switch to used equipment primarily because of economic constraints. However, he also pointed out that the transformation of these small companies is not only due to the constraints of economic conditions - there are still some companies that cannot accept the delivery of new equipment. This is why HTMS has developed a series of new auxiliary equipment while carrying out refurbishment business. The target customers are companies with limited budget and tight production tasks. Another reason is the availability of a limited number of donation machines. Demai said that HTMS can produce and provide corresponding tax ticket machines or transparent paper packaging machines within 6 to 8 weeks after the order is placed according to the agreed specifications. In addition, Demai emphasizes that HTMS can deliver equipment to users at half the price of new equipment and half the manufacturing cycle.

However, you still have to question how long this situation will last. It seems that one of the reasons that refurbished machines rely on their strong price advantage to continue to occupy the market is that merchants selling these best-selling equipment are fully aware of the demand for these devices. This situation is likely to continue until a new generation of equipment appears in the secondary market with a certain amount and reasonable price, and the refurbished equipment suppliers and customers have adapted to this new technology and its operating methods.

I estimate that most of this type of equipment is operated by large tobacco manufacturers. They may be reluctant to allow these equipment to be freely circulated in the market, causing problems such as illegal tobacco trade.

Another question then has to be asked: What is the status of the tobacco industry when a certain number of new generation machines are transferred from the original owner to the new owner? According to predictions for alternative tobacco products (including e-cigarettes), in the United States, there may be no need for a new generation of used equipment.

However, the issue of refurbishment costs is still at least a topic worth studying. The cost of renovation is more dependent on the type of renovation requirements. However, it is common for customers to require the latest technology to be applied to the old equipment as much as possible, and the cost of providing such equipment may be relatively high. It is necessary to pay attention that usually the refurbished machines will have to obey the health and safety requirements, and these regulations did not take effect in the era of prototypes of refurbished machines.

As mentioned above, apart from price, there are many other factors that have prompted some companies to renovate their old machines for a certain period of time, or to purchase the refurbished machines of the same type of machines they have been using—if a machine has been for many years It worked well and the company's technical staff adapted it, so it may not be necessary to buy a new machine or change its existing installation through renovation. Adherence to such technologies is also beneficial, such as the absence of additional training requirements and the continued availability of spare parts storage.

In order to allow an older model to continue to operate or perform a partial repair, or to pay a relatively low cost to implement a new device function, a partial or assembly replacement of the model can be achieved.

"There are already many competitors, including original equipment manufacturers, already involved in refurbishing equipment supply business." Rye said. It sounds like a complaint, but in reality it is "this is a healthy, healthy competition."