Flexible assets as key to success in tight metals market

As an account manager at Troostwijk Auctions, I have over 4 years of experience in the Dutch metal sector. Whereas the sector has been booming since the pandemic, recent developments in the sector are nevertheless worrisome. Order books are declining, confidence in the economy is falling and the number of bankruptcies in the metal industry has almost quadrupled. These challenging market conditions seem to call for a change in business practices. One of the keys to success lies in the flexible use of company resources.

The Dutch metal sector is in an economic slump, due in part to the shift of production abroad, rising energy and raw material prices, a lack of power connections and an ongoing shortage of personnel. This uncertain economic climate limits the scope for investing in large, expensive machinery. Yet our clients in the metals sector cite investment in technology and product innovation as key factors for a future-proof business. 

This requires a flexible approach, taking full advantage of new digital solutions. Think of leasing platforms and online auction houses like ours. These platforms enable entrepreneurs to more flexibly align the ownership of assets with their actual use. Access to a large market, with buyers and sellers throughout Europe, makes it easy to scale up and down on a project-by-project basis. 

The first association entrepreneurs have with auctioning is often bankruptcy. Although auctioning also originally originated here, 95% of auction offerings are now voluntary. A strong signal that more and more entrepreneurs see the strategic potential of freeing up capital by auctioning excess equipment or machinery digitally. This is also reflected in our figures: the number of auctions in the sector has increased by 53%. The proceeds from assets sold can be invested in modernization, preservation or automation of machinery, which can help relieve the pressure of personnel shortages, for example. 

In addition, at Troostwijk Auctions we see that the younger generation of entrepreneurs is increasingly opting for temporary ownership of assets, while older generations traditionally stick to ownership. By deploying machines flexibly and selling them again in a timely manner, metal entrepreneurs can respond better to new trends and save costs, while increasing their productivity through specialization. 

The future of the Dutch metal sector is uncertain, but the resilience of these entrepreneurs is undeniably strong. By being flexible with assets, entrepreneurs can better respond to changing market conditions, and together we are making the sector future-proof.

The Pen - Ruben Vogel – Account manager metal Troostwijk Auctions