New vs. Pre-Owned Process Equipment: Difficult Choice!
In the world of chemical engineering and industrial operations, few decisions stir as much debate as this one: Should we buy new process equipment, or source pre-owned?
It’s not simply a budget question. It’s a strategic choice
that touches on risk, reliability, lead time, stakeholder perception, and
long-term legacy. And while the spreadsheets may suggest a clear winner, the
reality is often more nuanced.
Sometimes new equipment is the right call. Sometimes
pre-owned saves the day. But the best decisions are never made in isolation.
They’re made with context, clarity, and a healthy dose of engineering judgment.
1. Risk Tolerance and Traceability: What Are You Really
Buying
Pre-owned equipment can be a smart move. But only if you
know what you’re getting.
Too often, teams focus on the purchase price and overlook
the hidden risks. Was the equipment maintained to spec? Are the manuals,
certifications, and service records intact? Has it been exposed to corrosive
media, thermal cycling, or undocumented modifications?
If the answers aren’t clear, you’re not buying a pump.
You’re buying uncertainty. And that uncertainty tends to show up when
production is at full tilt, not during commissioning.
In high-stakes environments, traceability isn’t a luxury.
It’s a requirement. That’s why I always ask for:
- Full
maintenance history, preferably digital
- Original
datasheets and performance curves
- Inspection
reports, especially for pressure vessels and rotating equipment
- A
clear chain of custody, including previous owners and operating conditions
If any of these are missing, the discount is likely not worth
the risk.
2. Lead Time: The Silent Cost Driver
In the chemical industry, time is often more valuable than
money.
New equipment especially custom-built or high-spec can take
six to twelve months to arrive. That’s fine if your project timeline allows it.
But if you’re facing a production bottleneck, regulatory deadline, or seasonal
constraint, waiting isn’t an option.
I’ve seen pre-owned units bridge that gap. They allow
commissioning to start while the “ideal” spec is still in procurement. It’s not
always elegant, but it gets the job done.
Here’s a real-world example: A mid-sized chemical plant
needed a backup heat exchanger after a fouling incident. The OEM quoted nine
months. A pre-owned unit with similar specs was sourced, inspected, and
installed within three weeks. It wasn’t perfect, but it kept the plant online.
3. Optics and Legacy: What Message Are You Sending
Equipment choices aren’t made in a vacuum. They’re made in
boardrooms, stakeholder meetings, and sometimes in public view.
For some stakeholders, new equipment signals commitment,
reliability, and long-term planning. It shows that the organization is
investing in its future and isn’t cutting corners.
For others, pre-owned signals agility, cost discipline, and
environmental responsibility. It shows that the team is resourceful and
pragmatic.
Neither is wrong. But the choice should match your audience
and your legacy.
Ask yourself:
- Will
this decision be scrutinized by regulators, investors, or insurers?
- Is the
equipment part of a flagship project or a tactical fix?
- Are
you building a long-term asset or solving a short-term problem?
Your answer will shape not just the procurement strategy,
but the story you tell around it.
4. Evaluate Your Minimal Demands When Considering
Pre-Owned Equipment
Before any procurement decision is made, there are several baseline
requirements I always insist on when evaluating pre-owned process equipment. These should not be optional, they’re the minimum standard for responsible
engineering.
- Up-to-date
maintenance file
If the equipment doesn’t come with a complete and current maintenance record, walk away. You need to know what was serviced, when, and by whom. Gaps in documentation often hide deeper issues. - Detailed
repair history
Every repair tells a story. Was it a routine seal replacement, or a major overhaul after a process upset? Understanding past interventions helps you assess remaining life and potential failure modes. - Chemical
exposure information
What chemicals has the equipment handled? Were they corrosive, abrasive, or reactive? This affects everything from material integrity to cleaning protocols. If the seller can’t provide this, you’re flying blind. - Wall
thickness measurements
Especially for pressure vessels and piping, wall thickness data is essential. It shows how much material has been lost to corrosion or erosion. Without it, you’re guessing at structural integrity. - Weld
inspection reports
Welds are often the weakest link. I ask for radiographic or ultrasonic inspection records, especially if the equipment has been modified or repaired. Surface polish means nothing if the welds are compromised. - Process
cycle history
How often has the equipment been heated, cooled, pressurized, or depressurized? Thermal and mechanical cycling can cause fatigue, warping, or microcracking. A unit that’s seen ten years of gentle service is very different from one that’s been through aggressive batch cycles. - Pressure
test or Hydrostatic test
If the equipment is designed to operate under pressure, a recent pressure test is essential. A hydrostatic test provides even greater assurance, revealing leaks, weaknesses, or structural fatigue that visual inspections can’t catch. If this hasn’t been done, you’re accepting risk without verification.
If even one of these is missing, I treat the equipment as
suspect. It doesn’t mean it’s unusable but it does mean the risk profile just
changed. And that needs to be reflected in the procurement strategy,
installation plan, and long-term maintenance budget.
5. Sustainability and Circular Thinking: Beyond the
Balance Sheet
Sourcing pre-owned equipment can reduce environmental
impact, extend asset life, and support circular economy principles. But only if
it’s done responsibly.
That means:
- Verifying
that the equipment meets current safety and emissions standards
- Ensuring
that refurbishment processes are documented and traceable
- Avoiding
“greenwashing” by being transparent about limitations
I’ve seen companies proudly ‘advertise’ reused equipment,
only to face backlash when it failed prematurely or didn’t meet compliance.
Sustainability must be backed by engineering rigor.
Final Thoughts: It’s Not About New vs. Used. It’s about the
right Fit
The best engineers don’t chase trends. They chase fit.
They ask: What does this project need? What does the
timeline demand? What risks are acceptable? What legacy are we building?
New equipment isn’t always better. Pre-owned isn’t always
cheaper. But the right choice—made with clarity, context, and care—will always
outperform the wrong one made in haste.
So next time you’re faced with this decision, don’t just
look at the quote. Look at the story behind it.
Let’s Compare Notes
I’d love to hear how you approach this decision in your own
projects. Do you have a rule of thumb? A story that changed your view? A lesson
learned the hard way?
Share your thoughts in the comments or connect with me on
LinkedIn: @TriplePoint.Engineering
or visit https://triplepoint.engineering
to explore more tools, visuals, and technical insights. Whether you're
navigating procurement, project closure, or risk strategy, I welcome your
perspective—and I’m always open to a good engineering conversation.
You can also explore more reflections and technical insights
on my blog:
TriplePoint.Threads
For more help please go to https://triplepoint.engineering
#triplepointengineering #dickverhoeven #processengineering
#assetmanagement #chemicalindustry #equipmentprocurement #engineeringleadership
#pre-owned #secondhand

Comments
Post a Comment