Equipment Appraisal Basics

The Impact of AI on the Manufacturing Industry

chris@marketingconsult.com (Chris Rials) — Wed, 21 Aug 2024 14:14:28 GMT

Article by Appenvitiv

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How Deere is preparing for a fully autonomous farm by 2030 by Kiley Lambert

Wed, 10 Jul 2024 20:06:31 GMT

View the original article here:

https://www.cnbc.com/2023/12/01/how-deere-is-preparing-for-a-fully-autonomous-farm-by-2030.html

Jahmy Hindman is senior vice president & chief technology officer of Deere & Company , a position he has held since July 2020. He is responsible for building Deere’s “tech stack,” the company’s intuitive end-to-end equipment solution made up of hardware and devices, embedded software, connectivity, data platforms, and applications. He leads the company’s Intelligent Solutions Group, its global network of technology/innovations centers, and the shared engineering function.

Hindman recently provided CNBC with a look at how the ag giant thinks about AI ahead of the CNBC Work Summit on December 6. This interview has been edited for length and clarity.

CNBC: Let’s start with the big picture. I know John Deere has been working on automation for years now and that improving efficiency has been at the heart of the company since John Deere himself introduced the steel plow in 1837. How have advancements in artificial intelligence and machine learning specifically changed the way John Deere is innovating now?

Hindman: Ever since the steel plow, we’ve had one goal in mind: to help farmers do more with less to meet the basic needs of our ever-growing population. Especially as they face challenges like constantly changing weather conditions, limited land suitable for farming, and continued workforce shortages.

We see AI — specifically computer vision and machine learning — as essential to helping farmers address these challenges. Computer vision helps farmers see beyond human capacity, and machine learning helps them make more accurate decisions at a tremendous scale.

The best example of this is our See & Spray technology. To keep plants healthy, farmers must kill weeds because they steal the vital nutrients plants need to grow into a healthy crop. Before AI, farmers had to spray the entire field to get rid of the weeds. But today, See & Spray can detect where every weed is in the field and apply herbicide only where it’s needed. And the machine continues to teach itself with images collected to become even more accurate in new scenarios, such as new field conditions, different plant growth stages, and plant diseases.

As AI continues to evolve, we’ll create smarter, more efficient, and more automated machines. They will help farmers care for every plant in every square foot of their field. It will make every job on the farm more productive and profitable. AI will also help us reach our goal of creating a fully autonomous production cycle for corn and soybean farmers by 2030. This means crops can be planted, sprayed, and harvested with autonomous technology. To reach this goal, we’ll continue deploying AI — along with robotics, sensors, data, and connectivity — to meet our customers’ most pressing needs.

Importantly, we’re also developing these solutions for machines already in the field to make them more productive. An example of this is the ability to retrofit See & Spray technology onto a sprayer built in 2018. With this approach, farmers with older machines can benefit from the newest technologies at a lower upfront cost and pay only for what they need through a “solutions as a service” model. This makes it easier for farmers to adopt and implement new technologies.

CNBC: Apart from some of the obvious benefits to farmers themselves, what are some of the global implications of these technological advances? Thinking of things like decreasing food insecurity in places where growing is particularly difficult, reduced carbon footprints, water conservation.

Hindman: The global population is expected to reach 10 billion by 2050 , and as diets improve, farmers must double crop production to provide enough food for everyone. But with constantly changing environmental conditions, it is harder for farmers to depend on past knowledge and experience. And, global agriculture employment has declined over the past decade , down to 26% of total employment in 2021 compared to 43% in 1991. So, farmers have more work to do with less predictability and less help.

However, farmers are the original stewards of the land and know it is important to protect land and resources for future generations. Technology helps them meet current demands without sacrificing sustainability. Going back to See & Spray, since farmers can precisely spray weeds rather than their entire field, they reduce herbicide use by approximately 66%. Similarly, farmers can reduce starter fertilizer use by 60% by using sensing technology during planting. Just looking at corn production, fertilizer accounts for a large portion of total greenhouse gas emissions. By integrating technology with agriculture machines, we’re seeing an immediate, measurable impact on our environment.

CNBC: The adage that “every company is a tech company” has never felt more apt. Talk to us about your approach to recruiting, hiring, and retaining talent? What’s the pitch to data scientists, coders, and software engineers who might otherwise be looking at Big Tech jobs? Why John Deere?

Hindman: Technology, like AI and autonomy, isn’t a new concept at Deere. It is essential and already in fields with farmers today. But that’s only possible because of our heavy investment in innovation and our commitment to hiring and working with the best tech talent. That’s what makes recruiting and developing diverse teams of talent essential to our strategy and core values. It’s also what drives us to be an engineering and data-centric organization.

For data scientists, software engineers, and other tech-centric workers considering their next career move, I recommend pursuing a job in agriculture technology – and specifically at Deere – because it’s an opportunity to create something that benefits everyone in the world. You can innovate with existing technologies like IoT, connectivity, robotics, and sensors, or you can get ahead of the technology curve and bring new use cases to life. Regardless of what you’re working on, you’re reminded of our purpose at every meal.

On December 6, join the free, online CNBC Work Summit to hear from leaders and experts working in the AI space on how this emerging technology will transform the business of work as we know it. Learn more here .

The Dirt: Review of Cat’s Remote-Control Station: Run Machines 2,000 Miles Away

Wed, 10 Jul 2024 20:02:15 GMT

Article b y: Bryan Furnace Lawson Rudisill

Jul 5, 2024

Professional operator and host of The Dirt Bryan Furnace recently got a Cat Command Station trailer brought to his home to test out.

During his trial with the station, he ran a Cat excavator, dozer and compact wheel loader positioned 2,000 miles away in North Carolina.

On this episode of The Dirt, he reveals his experience operating the equipment from so far away, the pros and cons, and what the future holds for this type of remote operation.

Caterpillar first revealed the station at ConExpo 2020 and since then has added equipment that can be operated remotely with it.

With a Starlink satellite setup, operators can run equipment on a jobsite from anywhere in the world. It comes with an operator’s seat, controls, touchscreen monitors and a large screen providing camera views around the equipment being operated. Users can control up to five different machines from the same or different locations. Standard machine technologies such as Grade Assist, Swing Assist and E-Fence can be used.

Caterpillar touts the following benefits of the Cat Command Station:

Operator safety for work in dangerous conditions.
Increased productivity – Operators can move from one machine or one jobsite to the next with the touch of a button.
Solving skilled-labor shortage – Operators with physical limitations can comfortably run a machine from a station.

So to find out what it’s like to operate from a Cat Command Station and learn more about this exciting technology that Bryan believes could one day change how contractors think about their businesses, check out the latest episode of The Dirt .

Equipment World serves up weekly videos on the latest in construction equipment, work trucks and pickup trucks – everything contractors need to get their work done. Subscribe and visit us at equipmentworld.com !

Watch the video here: https://youtu.be/SGSA0JkOxOI

July NEBB Institute Webinar

chris@marketingconsult.com (Chris Rials) — Tue, 18 Jun 2024 13:14:52 GMT

Blockage - What Is It and How Does It

Affect the Appraisal Industry

July 9, 2024 (Tues.) | 1:00 PM EDT

A blockage discount adjusts the Fair Market Value of an item downward because of the risks of discounting when a large volume of one thing is released into the relevant market all at once. This is very familiar to appraisers of art and memorabilia. For example, if suddenly a large number of what was thought to be a limited edition of artwork, rare books artifacts, etc. were suddenly to be put up for sale the value based on the rarity of owning such collectibles almost definitely decline, in some cases substantially.

Whether familiar with the term or not, equipment auctioneers certainly see the same effect when selling a high volume of similar equipment at a single action, such as a fleet of a particular make and model of bulldozers or a factory full of the same CNC machines. In the equipment appraisal profession, though, Blockage is often underused or not used as it is generally not a familiar concept. Similar principles can apply when selling a large volume of publicly held stock, for example, or in a business or estate valuation when there is a large amount of the same equipment, inventory, etc. This webinar will explain the basic principles of blockage and illustrate applications for equipment appraisers.

Register for the webinar here: https://us06web.zoom.us/webinar/register/7817187125817/WN_qeZAATbjQsyNhoBjol3B1A#/registration

Tips for Selling Old Equipment: How to Sell Machinery That’s 10 Years or Older

Tue, 11 Jun 2024 20:16:28 GMT

Reposted article from Equipment Trader

by: Ryan Miller on April 12, 2024

Selling old equipment presents its unique set of challenges to attract buyers, so here is Equipment Trader’s advice to maximize value.

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Komatsu Closes 2023 Fiscal Year with 9% Increase in Sales

Tue, 11 Jun 2024 20:06:36 GMT

Reposted article from Equipment World

by Jordanne Waldschmidt

May 28, 2024

Increased sales, improved selling prices and depreciation of the Japanese yen drove Komatsu ’s net sales up 9.1% for the 2023 fiscal year, ended March 31.

According to the company’s earnings report, net sales for the year totaled JPY 3,865.1 billion, operating income rose to JPY 607.2 billion, and net income increased to JPY 393.4 billion.

The company reports that demand for construction, mining and utility equipment decreased in Latin America, Europe and Asia, but remained steady in North America. Stable resource prices also helped drive strong demand for mining equipment. Sales for the segment increased 9.7% comparted to fiscal year 2022, to JPY 3,615.2 billion.

Komatsu’s retail finance segment saw revenues rise by 20.9% to JPY 103.5 billion for the year, due to growing interest rates and the positive effects of foreign exchange rates.

Industrial machinery sales, which includes presses, sheet metal machines and machine tools for the automobile manufacturing industry, rose 2.5% over the previous year to JPY 195.6 billion, driven by due increased sales of large presses.

Fiscal Year 2024 Outlook

Looking forward, Komatsu projects a decrease in both sales and profits for the 2024 fiscal year as demand for mining equipment will remain flat in most regions and demand for construction equipment will decline. Komatsu attributes the decline to continued high interest rates and energy prices. In addition, Komatsu projects that the Japanese yen will appreciate, causing sales to decrease from the 2023 fiscal year.

In the retail finance business, Komatsu expects an increase in revenues, driven by rising interest rates, but a decline in segment profit, due to reduced resale profits of used equipment after leasing use.

The company anticipates that both sales and segment profit for its industrial machinery segment will rise, due to expected recovery of maintenance revenues of the excimer laser-related business for the semiconductor industry.

Komatsu is reassessing the investment relationship within the Komatsu Group, such as bringing Latin American subsidiaries managed by a North American subsidiary under direct control of the company. “Even if such a change of investment relationship is carried out, the impact of this matter on consolidated business results for the fiscal year ending March 31, 2025 will be minimal,” the company said.

Food Processing Equipment Appraisals in Today’s F&B Landscape

Wed, 27 Mar 2024 22:55:38 GMT

Food processing equipment appraisals go beyond a simple price tag. This article from NEBB Institute explores the multifaceted world of appraising machinery in today’s F&B landscape.

Food processing equipment appraisals are crucial for businesses in the food processing industry, providing accurate evaluations of equipment value to make informed decisions about buying, selling, upgrading, or investing in equipment. Appraisals help in avoiding overpaying or underselling equipment and are essential for obtaining loans and insurance coverage.

Competent appraisers should be able to evaluate various items in food processing equipment, including processing, preparation, and packaging machines, conveyor systems, ovens, thermometers, measurement devices, and more. These appraisal reports should outline the equipment’s worth based on its current condition and market demand, helping businesses understand the value of their machinery and plan for the future.

An Overview

Global Food Processing Equipment Market:

The global food processing equipment market size was estimated at USD 50.80 Billion in 2022 and is expected to reach USD 52 billion.
The market is projected to grow at a compound annual growth rate of 4.0% from 2023 to 2030, reaching USD 69.30 Billion by 2030 .
Asia Pacific dominated the market with a revenue share of 34.9% in 2021.

US Food Processing Equipment Market:

These sources collectively offer a comprehensive view of the food processing equipment market, including market size, key players, trends, and factors influencing market growth.

The US food processing equipment distributors industry employs over 10,000 people and generates an estimated $5 billion in revenue annually as of March 2021.
Future Market Insights forecasts that the food processing equipment market is expected to reach $69.8 billion by 2032, driven by factors like the rising food & beverage industry, safety regulations, and demand for packaged foods.
A report on LinkedIn discusses the global food processing equipment market size, focusing on market analysis, classification by type and application, and key players in the industry.

Key Players:

Grand View Research provides insights into the global food processing equipment market, highlighting market size, key players like Krones AG and trends in different applications such as bakery, meat, dairy, and beverages.

Major companies in the food processing equipment market include Krones AG, KHS Group, OPTIMA Packaging Group GmbH, ProMach, and others.

Factors Driving the Market:

Key factors driving the food processing equipment market include the rising food & beverage industry, stringent regulations on food processing & safety, and increasing demand for packaged and processed foods.

Benefits of a Food Processing Equipment Appraisal

Understanding the accurate value of your equipment, whether it’s industrial mixers, high-powered ovens, or complex packaging machines, is crucial for various situations. Food processing equipment appraisals provide F&B businesses, lenders, and individuals with a clear picture of equipment worth, ensuring fair transactions, securing financing, and making strategic investment choices.

Informed Decision-Making: A food processing equipment appraisal empowers F&B businesses to make well-informed decisions regarding equipment purchases, upgrades, and sales. Knowing the true value of your assets allows for better budgeting, negotiation leverage, and strategic planning for future equipment needs.
Increased Confidence for Lenders: When financing equipment purchases, lenders rely on accurate valuations to minimize risk. A food processing equipment appraisal provides a credible assessment, fostering trust and facilitating smoother loan approvals.
Accurate Valuations for Fair Transactions: Whether buying or selling equipment, a food processing equipment appraisal ensures fair pricing. This eliminates guesswork and protects both parties involved in the transaction.

When to Get a Food Processing Equipment Appraisal

There are several situations where a food processing equipment appraisal becomes essential:

Financing Equipment Purchases: Obtaining a loan for new equipment often requires a professional appraisal to determine the equipment’s value as collateral.
Selling a Business or Equipment: Accurately valuing your equipment during a business or equipment sale is crucial. A food processing equipment appraisal provides a reliable basis for negotiations and ensures you receive fair market value.
Insurance Purposes: Equipment insurance requires an accurate valuation to determine the appropriate coverage amount. A food processing equipment appraisal ensures you have adequate insurance protection.
Dispute Resolution: In case of disagreements regarding equipment value, a food processing equipment appraisal offers an objective and impartial assessment to resolve disputes fairly.
Tax Purposes: Depending on tax regulations, equipment depreciation may be a factor. A food processing equipment appraisal establishes a baseline value for calculating depreciation accurately.

Picture This: How Appraisals May Benefit F&B Businesses

Here are a few examples of how food processing equipment appraisals have benefitted F&B businesses:

Case Study 1: Securing a Loan for ExpansionA local bakery planned to expand its operations and required financing for new industrial ovens. However, the bank hesitated due to the lack of a clear valuation on their existing equipment. By obtaining a food processing equipment appraisal, the bakery owner was able to demonstrate the value of their existing assets, which ultimately secured the loan needed for expansion.

Case Study 2: Fair Pricing During Equipment SaleA family-owned cheese manufacturing company decided to sell some of their older processing equipment. To ensure fair pricing, they hired a qualified appraiser. The food processing equipment appraisal provided an objective assessment, leading to a successful sale at a mutually agreeable price.

Choosing the Right Food Processing Equipment Appraiser

Selecting a qualified appraiser is crucial for a reliable and accurate food processing equipment appraisal. Look for appraisers with:

USPAP-Compliant Methodology: The appraiser should adhere to the Uniform Standards of Professional Appraisal Practice (USPAP) for ethical and credible valuations.
Clear Communication and Responsiveness: Effective communication throughout the appraisal process is crucial. Choose an appraiser who is readily available to answer your questions.
Professional Certifications and Reputation: Look for appraisers with relevant certifications and a positive reputation within the industry.
Experience in F&B Equipment Valuation: Experience in appraising similar equipment within the F&B industry ensures a deep understanding of factors impacting value.

For example, experienced M&E appraisers understand how average depreciation rates may vary for different equipment categories:

Mixers: Industrial mixers typically depreciate at a rate of 10-15% annually
Ovens: High-powered ovens can see depreciation rates ranging from 12-18% per year
Freezers: Commercial freezers generally depreciate at a rate of 8-12% annually

These figures can vary depending on factors such as brand, condition, usage, and maintenance history of the equipment. It is essential to consult a qualified food processing equipment appraiser to determine the specific depreciation rate for your equipment accurately.

Interested in learning more about food processing equipment appraisal? Sign up for our free webinar on April 9, 2024, “ Unlocking Restaurant Value: Essential Strategies for Machinery & Equipment and Business Appraisers .”

NEBB Institute Webinar

chris@marketingconsult.com (Chris Rials) — Fri, 12 Jan 2024 16:45:33 GMT

NEBB Institute hosts webinar welcoming new content support experts Chris Rials and John Harris

CHRIS RIALS

BCA, MCMEA , Director NEBB

Mr. Rials brings a prodigious 13-year career in machinery and equipment appraisal, mastering the field with the coveted Master Certified Machinery and Equipment Appraiser (MCMEA) designation from the NEBB Institute. Beyond this pinnacle achievement, Chris holds the nationally recognized BCA (Business Certified Appraiser) and CSBA (Certified Senior Business Analyst) designation, demonstrating his broad expertise across business valuation and analysis.

JOHN HARRIS

MCMEA , Former Founder & Director of NEBB Institute

For over 40 years, Mr. Harris has established himself as a recognized leader in the appraisal and valuation industry. As an accredited senior appraiser, international business broker, and frequent expert witness, he possesses a wealth of knowledge and practical experience that will be invaluable to the NEBB Institute. His proven track record includes training over 1,000 appraisers across the globe and personally selling over 400 businesses, demonstrating his commitment to both education and industry growth.

At the webinar on January 9th, 2024, Mr. Rials and Mr. Harris reviewed the needs and benefits of NEBB membership along with management's desires and future goals. It also included an introduction of new support personnel for NEBB, namely Chris Rials and John Harris. This meeting provided an opportunity for all members to express their concerns and hopes for the organization moving forward. We're very excited about the future of NEBB Institute! A new and updated website is in the works and should be completed by end of quarter 1 2024. For now, you can access them at www.NEBBInstitute.org. Be sure to check out their parent organization Certitrek at www.Certitrek.com

Why Do I Need A Certified Machinery & Equipment Appraisal?

Fri, 16 Dec 2022 03:13:36 GMT

How do you determine the value for the capital equipment?

Guessing, relying on the word of the owner, relying on a depreciation schedule, or relying on the word of anon-certified person who may have a hidden agenda is INACCURATE and UNSUBSTANTIATED. The SBA, IRS, courts and other require a Certified appraisal by a Certified Appraiser!

Not all Appraisal Reports are equal! Beware of appraisal reports that are not USPAP compliant and are prepared by a non-certified appraiser. USPAP (Uniform Standards of Professional Appraisal Practice), promulgated by Congress and the Appraisal Foundation, sets the ethical standards and what data is required in an appraisal report.

Only a Certified Appraiser who delivers a USPAP compliant Certified Machinery and Equipment Appraisal will

Withstand Scrutiny

Because the data collected and reporting is...

Substantiated
Irrefutable
Defensible

Why would you rely on any other type of appraisal report. The answer is simple: You shouldn't!

Why Hire a Certified Equipment Appraiser?

Mon, 16 Sep 2019 14:56:57 GMT

Why Hire a Certified Appraiser?

In the machinery, equipment, asset, and business appraisal industry we are working hard to help educate our communities on the answer to this question. Most individuals are only familiar with a commercial real estate appraisal, or their own home appraisal. These appraisals are often required and thus people don’t always see the benefits of having them. Obviously, most people don’t enjoy purchasing an appraisal with their hard-earned money, but there are times when a proper appraisal can either add thousands of dollars to the value of your business or save you thousands of dollars in tax or litigation situations.

First, what are some reasons that you may need to or be required to hire a certified appraiser?

• Business/ Estate Planning

• Business Buy/Sell Agreements

• Loans

• Bankruptcies

• SBA Loans

• IRS / Tax Purposes

• Partnership Buy-Out/ Sell-Out

• Litigation

The list goes on and on. The point is, there are numerous reasons why you may need a certified appraisal. However, the problem we see most frequently is that there are individuals out there who call themselves appraisers, but they are not! Often, they are not certified, and they probably have never been to appraisal school. For this reason, they may sound less expensive and generally they are. A word of caution though:

• What’s going to be the true cost of hiring the non-certified appraiser?

• What’s going to be the real result of that appraisal?

Just because someone can come up with an estimate of value, does that really mean that they are qualified or even capable of defending that value in a court of law? Do you even trust them to do so? Can they write the report in a government approved compliant format? Are they familiar with the appraisal ethics standards? Are they familiar with the latest U.S.P.A.P (Uniform Standards of Professional Appraisal Practice) standards, and is their report in compliance with those standards? This is the only type of report you want to pay for and rely upon.

These are the things that we will provide you at Peak Equipment Appraisal. All our reports follow and are compliant with the latest government, U.S.P.A.P, and ethical standards. We pride ourselves in our high ethical standards and being able to defend our values and our reports in court.

If you would like to hire a certified and competent appraiser and a fair and reasonable price, please give us a call today. We are happy to answer any questions you may have and provide you with a free no-obligation consultation.

(469) 667-6862

Chris@PeakAppraisalGroup.com

Equipment Appraisal Basics

Recommended Reading

This is a subtitle for your new post

The Impact of AI on the Manufacturing Industry

Article by Appenvitiv

How Deere is preparing for a fully autonomous farm by 2030 by Kiley Lambert

View the original article here:

https://www.cnbc.com/2023/12/01/how-deere-is-preparing-for-a-fully-autonomous-farm-by-2030.html

The Dirt: Review of Cat’s Remote-Control Station: Run Machines 2,000 Miles Away

July NEBB Institute Webinar

Tips for Selling Old Equipment: How to Sell Machinery That’s 10 Years or Older

Komatsu Closes 2023 Fiscal Year with 9% Increase in Sales

May 28, 2024

Fiscal Year 2024 Outlook

Food Processing Equipment Appraisals in Today’s F&B Landscape

Food processing equipment appraisals go beyond a simple price tag. This article from NEBB Institute explores the multifaceted world of appraising machinery in today’s F&B landscape.

NEBB Institute Webinar

NEBB Institute hosts webinar welcoming new content support experts Chris Rials and John Harris

Why Do I Need A Certified Machinery & Equipment Appraisal?

How do you determine the value for the capital equipment?

Why Hire a Certified Equipment Appraiser?

Why Hire a Certified Appraiser?

Equipment Appraisal Basics

Recommended Reading

This is a subtitle for your new post

The Impact of AI on the Manufacturing Industry

Article by Appenvitiv

How Deere is preparing for a fully autonomous farm by 2030 by Kiley Lambert

View the original article here:

﻿ https://www.cnbc.com/2023/12/01/how-deere-is-preparing-for-a-fully-autonomous-farm-by-2030.html

The Dirt: Review of Cat’s Remote-Control Station: Run Machines 2,000 Miles Away

July NEBB Institute Webinar

Tips for Selling Old Equipment: How to Sell Machinery That’s 10 Years or Older

Komatsu Closes 2023 Fiscal Year with 9% Increase in Sales

May 28, 2024

Fiscal Year 2024 Outlook

Food Processing Equipment Appraisals in Today’s F&B Landscape

Food processing equipment appraisals go beyond a simple price tag. This article from NEBB Institute explores the multifaceted world of appraising machinery in today’s F&B landscape.

NEBB Institute Webinar

NEBB Institute hosts webinar welcoming new content support experts Chris Rials and John Harris

Why Do I Need A Certified Machinery & Equipment Appraisal?

How do you determine the value for the capital equipment?

Why Hire a Certified Equipment Appraiser?

Why Hire a Certified Appraiser?

https://www.cnbc.com/2023/12/01/how-deere-is-preparing-for-a-fully-autonomous-farm-by-2030.html