Loffi#ff ('lffi acreery?tfri?,iffi frrce › 2016 › ...Ritchie Bros.'massive Nisku yard look like...
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Edmonton region one of the world's largest industrial auction centres GORDON KENT The rows ofbackhoes, bulldozers, trucks and graders that stretch alongkilometres of laneways make Ritchie Bros.'massive Nisku yard look like a giant Tonka Toys park- ing lot. The record-setting te0OO-plus pieces assembled for the compa- ny's five-day sale this week look impressive, but also illustrate something industry insiders have known,foryears - the Edmonton region is one of the world's largest industrial auction centres. "This is equipmentcentral, soto speak, so when people... are look- ing for used equipment, they know overtime this is a hub," said Brian Glenn, Ritchie's senior vice-presi- dent for Western Canada. The Vancouver-based compa- ny last year moved $73l-million worth of equipment through its 8o-hectare Nisku facility, up from Potential bidders survey some of the heavy equipment assembled at Ritchie Bros.'Nisku yard for a record-setting five-day sale . "o *urr"* Loffi#ff ('lffi acreery?tfri?,iffi frrce $569 million in2Ol4. That gives the site about t4 per cent ofthe firmt multibillion-dol- lar total sales. While Orlando, Fla., typically hosts the world's largest auction over several days each February more machinery moves annu- ally through Nisku than any of Ritihie's other roughly 4O loca- tions. SEE AUCTION ON A6 Oil, gas gear has'accumulated' AUCTION FROI\,I .EI "You look at the province ofAl- berta alone, the equipment PoPula- tion, regardless ofwhich industry youire in, is probably greater than anywhere in the country," Glenn said. One key reason is that big Pieces are usually too expensive to shiP far for sale. Almost half the items purchased from Ritchie Bros. in Edmonton last year went to out-of-Province customers and 13 per cent left the country, almost entirelY to Ameri- cans with their strong dollars. Ritchie Bros. isn't the onlY firm contributing to Edmonton's im- portance inthe international auc- tion industry. Osman Auction Inc. moved last December to a new $22-million, nine-hectare facility on 199 Street, adding an auction ringwith a state- of-the-art audio-visual sYstem and doors that roll oPen to show bidders each piece of equiPment driving past, similar to the setuP at Ritchie Bros. General manager Jeff SPiller expects a record sale MaY 25, al- though he can't provide numbers. What's good for the auction in- dustry doesn't necessarilY mean good things for the ailing Alberta economy. "All the oil and gas equipment has just accumulated. Now, un- fortunately, a lot of it's being liq- uidated," Spiller said. For example, "somebodY who owned 20 graders because theY needed it for their business now only needs six ... Everybody's downsizing." Family-owned Michener Allen Auctioneering Ltd., which runs 13 sales a year from facilities in Cal- gary and in Acheson near Edmon- ton's western boundary, e:gPects to handle $5O millionto $60 million worth of industrial equipment this year. I EdmontonhasalwaYsbeentheir biggest location, co-owner Wade Michener said. He said the local auction industry creates jobs and a higher interna- tional profile for the region. There's work "in transportation of equipment and clean uf, and... hotel rooms," he said. "And the exposule the city gets to the world, especially on the In- ternet - I think it's been put on the map." The web accounts for a grow- ing percentage of auction sales. In 2015, about 55 per cent ofsales from Ritchie Bros. Edmonton auc- tions, or $402 million, were made online, compared to 47 per cent - $27o million - theyeaibefore. American online auction house IronPlanet, which has sold $4 bil- lionworth of material since 2OOO, held its first live auction in Edmon- tonlast fall after mergingwithCat Auction Services. Its work includes marketing used machinery for Finning Interna- tional, the world's largest Cater- pillar dealer. Still, manypeople like to come to see the machinery for themselves, kick the tires; put the hYdraulics through their paces and listen to an auctioneer's mesmerizing torrent of words before plunking down $l3Ogoo for a loader. Some do inspections inthe daYs before a sale or send an agent, then bid from their offices or home, while others sit inthe plastic seats and signal their int.erest by hand or a nod. They're attracted bY the chance to find a deal, the oPPortunitY to network or the chance to gather in- formation about the possible value oftheir own fleets. "You get to find out what's haP- pening. You get a feel for what the economy is like," said Edmonton's Bernie Briggs, who works in heavY equipment rentals. "You can read what some Politi- cian said or your banker saYs, but this is reality. This isn't theory'" gke nt @p o s tme diric oin' : twitter.com/GKentEJ
Transcript of Loffi#ff ('lffi acreery?tfri?,iffi frrce › 2016 › ...Ritchie Bros.'massive Nisku yard look like...
Edmonton region one of the world'slargest industrial auction centres
GORDON KENT
The rows ofbackhoes, bulldozers,trucks and graders that stretchalongkilometres of laneways makeRitchie Bros.'massive Nisku yardlook like a giant Tonka Toys park-
ing lot.The record-setting te0OO-plus
pieces assembled for the compa-ny's five-day sale this week lookimpressive, but also illustratesomething industry insiders haveknown,foryears - the Edmonton
region is one of the world's largestindustrial auction centres.
"This is equipmentcentral, sotospeak, so when people... are look-ing for used equipment, they knowovertime this is a hub," said BrianGlenn, Ritchie's senior vice-presi-dent for Western Canada.
The Vancouver-based compa-ny last year moved $73l-millionworth of equipment through its8o-hectare Nisku facility, up from
Potential bidders survey some of the heavy equipment assembled at Ritchie Bros.'Nisku yard for a record-setting five-day sale . "o
*urr"*
Loffi#ff ('lffi acreery?tfri?,iffi frrce$569 million in2Ol4.
That gives the site about t4 percent ofthe firmt multibillion-dol-lar total sales.
While Orlando, Fla., typicallyhosts the world's largest auctionover several days each Februarymore machinery moves annu-ally through Nisku than any ofRitihie's other roughly 4O loca-tions.SEE AUCTION ON A6
Oil, gas gear has'accumulated'AUCTION FROI\,I .EI
"You look at the province ofAl-berta alone, the equipment PoPula-tion, regardless ofwhich industryyouire in, is probably greater thananywhere in the country," Glennsaid.
One key reason is that big Piecesare usually too expensive to shiPfar for sale.
Almost half the items purchasedfrom Ritchie Bros. in Edmontonlast year went to out-of-Provincecustomers and 13 per cent left thecountry, almost entirelY to Ameri-cans with their strong dollars.
Ritchie Bros. isn't the onlY firmcontributing to Edmonton's im-portance inthe international auc-tion industry.
Osman Auction Inc. moved lastDecember to a new $22-million,nine-hectare facility on 199 Street,adding an auction ringwith a state-of-the-art audio-visual sYstemand doors that roll oPen to showbidders each piece of equiPment
driving past, similar to the setuPat Ritchie Bros.
General manager Jeff SPillerexpects a record sale MaY 25, al-though he can't provide numbers.
What's good for the auction in-dustry doesn't necessarilY meangood things for the ailing Albertaeconomy.
"All the oil and gas equipmenthas just accumulated. Now, un-fortunately, a lot of it's being liq-uidated," Spiller said.
For example, "somebodY whoowned 20 graders because theYneeded it for their business nowonly needs six ... Everybody'sdownsizing."
Family-owned Michener AllenAuctioneering Ltd., which runs 13
sales a year from facilities in Cal-gary and in Acheson near Edmon-ton's western boundary, e:gPects tohandle $5O millionto $60 millionworth of industrial equipment thisyear.
I EdmontonhasalwaYsbeentheirbiggest location, co-owner Wade
Michener said.He said the local auction industry
creates jobs and a higher interna-tional profile for the region.
There's work "in transportationof equipment and clean uf, and...hotel rooms," he said.
"And the exposule the city gets
to the world, especially on the In-ternet - I think it's been put on themap."
The web accounts for a grow-ing percentage of auction sales.In 2015, about 55 per cent ofsalesfrom Ritchie Bros. Edmonton auc-tions, or $402 million, were madeonline, compared to 47 per cent
- $27o million - theyeaibefore.American online auction house
IronPlanet, which has sold $4 bil-lionworth of material since 2OOO,
held its first live auction in Edmon-tonlast fall after mergingwithCatAuction Services.
Its work includes marketing usedmachinery for Finning Interna-tional, the world's largest Cater-pillar dealer.
Still, manypeople like to come tosee the machinery for themselves,kick the tires; put the hYdraulicsthrough their paces and listen to anauctioneer's mesmerizing torrentof words before plunking down$l3Ogoo for a loader.
Some do inspections inthe daYs
before a sale or send an agent, thenbid from their offices or home,while others sit inthe plastic seatsand signal their int.erest by handor a nod.
They're attracted bY the chanceto find a deal, the oPPortunitY tonetwork or the chance to gather in-formation about the possible valueoftheir own fleets.
"You get to find out what's haP-pening. You get a feel for what theeconomy is like," said Edmonton'sBernie Briggs, who works in heavYequipment rentals.
"You can read what some Politi-cian said or your banker saYs, butthis is reality. This isn't theory'"gke nt @p o s tme diric oin' :
twitter.com/GKentEJ
