Nearly 7 in 10 hospitality, entertainment and leisure businesses have working equipment sitting idle, finds Ramco
New research reveals almost 7 in 10 (67%) organisations in the hospitality, entertainment and leisure industry have good working equipment they no longer need just sitting idle, with nearly £59 billion worth of capital tied up in working assets across all businesses in the UK.
As pressure mounts to find new ways to reduce the cost of doing business, reuse specialist, Ramco, which is exhibiting at HRC 2023, is urging firms to unlock the value in their assets by contributing to the circular economy and finding new homes for idle items – rather than letting them go to waste.
The new data shows as many as 3.7 million UK businesses admit to having good quality, working equipment they no longer need. The survey also revealed individual organisations could have an average of over £10k worth of unwanted assets sitting idle.
Conducted by Censuswide, Ramco’s research highlights that 84% of senior managers in the hospitality, entertainment and leisure industry dislike the idea of unwanted equipment being scrapped or left to ruin in their business. Despite this, over half (55%) say they have disposed of working equipment by sending it to landfill in the last five years.
With demand for second-hand business assets at the highest point in Ramco’s 26 years of operation, founder and MD Neil Sanderson (pictured) says the research findings are frustrating: “The second-hand market for consumer goods is booming through platforms like eBay, Vinted and the rise of fashion rental. It’s the same picture for the commercial second-hand market, so to discover businesses have such huge capital tied up in good assets they no longer use when costs for doing business are rising, is hard to hear.”
Topping the list of second-hand business equipment sought by Ramco’s buyers are electrical goods, followed by industrial and plant machinery. And 66% of businesses say they regularly seek to purchase second-hand equipment before looking to buy new.
Neil continues: “It’s frustrating to see how much untapped potential there is when it comes to second-hand business goods. Across the country there’s a mountain of good quality items being unused and left to ruin.
“As the cost of doing business spirals, we’re urging businesses to use this opportunity to review their assets and where they’re no longer needed, give them a new lease of life instead of letting them go to waste. It’s an opportunity to reduce an organisation’s carbon footprint, minimise storage costs and unlock capital. None of us can afford to waste resources - for the planet and for profit.”
Ramco has worked with a wide range of businesses in the hospitality industry, including Catercall who provide repairs, services, and installation for foodservice professionals. In 2020, Ramco supported Catercall in assessing the value of industrial kitchen equipment no longer needed at a prison in the West Midlands.
Since then, Ramco has been working with Catercall and finding new homes for a vast collection of surplus assets, from computers and telecom systems to kitchen appliances and equipment.
Richard Jeffryes, Contracts Manager at Catercall said: “Since we started working with Ramco, we've changed the way we look at our older assets, now taking the time to make sure they're in good shape before sending them to be reused.
“We get a far greater financial return than we expected which has meant money being reinvested into the company, further enhancing the Catercall experience for our customers.
“By adopting a circular economy approach, we no longer worry about how to dispose of our older assets. This not only improves the quality of our services and profitability but more importantly has a positive impact on the environment.
“We can’t recommend Ramco highly enough and look forward to seeing where our continued partnership goes."
To help organisations see the potential in their unwanted equipment, Ramco has launched a new value finding tool to illustrate the carbon savings and financial return which can be generated by giving assets a new lease of life.
Visit the Ramco website to see examples of typical equipment that might be sitting idle in foodservice businesses. www.ramco.co.uk/assess-your-assets.