ASA 2019 Equipment Valuation Conference

In 2012, the American Society of Appraisers Machinery and Technical Specialties (MTS) Committee sponsored the first ASA Equipment Valuation Conference (EVC), a new event targeted towards equipment appraisers and those that hire them and review their work. While ASA’s MTS Committee has had many regular classes and webinars, this new event was intended to allow a discussion of a wide range of equipment appraisal topics in a multi-day event.

The MTS Committee had asked Joe Santora, ASA, to be the first conference’s coordinator, a position he had held ever since. Santora says that the goal of the conference was to provide industry data that would allow them to do their jobs better. He also wanted to present it in a way that would appeal to those in the financial industry. Santora felt that having the right content that would now only be appealing to appraisers, but also. To bankers would then provide appealing networking opportunities for both groups.

The first conference was held at Cleveland’s Hyatt Regency at The Arcade at had forty-four attendees. By the fourth year though, the conference was sold out and was turning people away because of space limitations. It was then moved around the corner to the Metropolitan at The 9, which provided enough space for the conference to continue to grow, and this year it hosted about 140 equipment appraisers. Over the years, the conference has attracted attendees from all over the United States and Canada, as well as from Japan, Israel, Saudi Arabia, Brazil, Venezuela, and Panama.

This year’s conference began with an economic report, presented by Mekael Teshome, a Vice President with the Federal Reserve Bank of Cleveland. Teshome has presented for several conferences and discussed general economic trends, such as growth projections in the U.S. gross domestic product and inflation, that were important in considering some of the other equipment economics that would be discussed by other presenters over the remaining day-and-a-half of the conference.

ASA’s new Chief Executive Officer, Johnnie White, and ASA’s Senior Director of Government Relations and Business Development, John Russell, discussed recent equipment trends and developments affecting equipment appraisers, including changes at the federal legislative level. White also reviewed some of the recent changes in ASA, upcoming plans, and new ASA partnerships, such as the new partnership with another valuation professional organization, Royal Institute of Chartered Surveyors.

In the afternoon, Ken Heyse, ASA, President of Plastics One Asset Advisors, covered the plastics industry and its equipment. He discussed the current market for injection molding, extrusion, and blow molding equipment. He also explored the equipment involved in plastics recycling. Heyse had presented previously at the 2017 EVC and says thinks the conference provides a “tremendous networking opportunity, both on the appraisal side and the financial community side.” Heyse commented that “the quality of the presentations was quite good” and that unlike other conferences, attendees aren’t forced to choose between a number of small sessions running at the same time. “In Cleveland, every presenter gets the undivided attention of the audience, and the audience gets to listen to every presentation. That provides for a broader audience and allows for a better connection.” Heyse said that the breadth of the presentations was a definite advantage, and thought the digital marketing presentation would be beneficial for Plastics One as they worked to improve their own marketing.

Brian Ferritto followed with a presentation on how to grow your business with digital marketing. Ferritto is the Director of Digital Marketing with 42connect, a local marketing firm that has experience with a range of clients, including Tiger Woods, GE and Eaton Corp. He discussed the type of digital marketing, such as search engine optimization (SEO), paid advertising, and social media.

Otto Cuyler, another repeat presenter at the EVC, was next. Cuyler is the president of Cuyler FoodPro, and the third generation of his family in the food equipment business. He discussed the food processing industry, including production and packaging equipment, and some of the trends in food machinery equipment. He also walked through some of the considerations in appraising food processing and packaging equipment, and how his firm approaches appraisals and forward-looking value of the equipment.

The last presentation of the day was from Kevin Sensenbrenner, ASA, Senior Vice President of Stonebriar Commercial Finance. Sensenbrenner discussed what finance organizations are looking for in their appraisals, and why some reports “fall short” in the review process.

That evening, many conference attendees took advantage of the opportunity to attend a Cleveland Indians game at nearby Progressive Field. Santora was able to secure club seats for the attendees, which included great seats for the game, as well as all-inclusive food.

The following day began with a transportation equipment review by Rob Slavin, a Senior Valuation Analyst with Ritchie Bros. Slavin discussed the new and used truck marketplace, and what specifications buyers are usually looking for in purchasing equipment. He also reviewed a number of the specifications variations that lead to significant value differences when determining the value of a used truck, such as engine options, the types of cabs (day cabs vs. types of sleeper cabs), and regular considerations such as engine mileage and condition.

Brad Hartsburg with Fortress Machinery Appraisals presented next with “The Only Thing That Matters in the World is Yellow Iron.” He discussed the different configurations of equipment and their applications. He also reviewed some of the histories of “yellow iron” equipment, including the beginnings of John Deere in the mid-1800s, and Caterpillar in the early 1900s. Hartsburg provided examples of different equipment components, such as the tracks on an excavator, and discussed what to look for to determine condition. He also reviewed some of the specialized heavy-duty equipment seen in the mining industry.

The last presentation of the conference was by Joe Joyce of Russell Equipment Company. Joyce discussed his firm’s eight-step approach to appraising forklifts. The process included consideration of the original manufacturer’s reputation in the market, as well as major components and hours of usage. He then stepped through three examples with the attendees on how that eight-step process would apply to a real-world appraisal of a forklift.

Douglas Krieser, ASA, the incoming ASA International President, said he has attended every equipment conference since the first in 2012. He commented, “I find the Equipment Valuation Conference an excellent source of the most up to date information from experts who are entrenched in their respective industries.”

Santora stated that he felt the conference to be a success. In 2013, he said “We want everyone to walk out saying ‘I can use that information when I get back to the office on Monday.’” Santora said that this immediate usefulness was still fundamental to him and that he was proud of the conference’s success over the past eight years and the growth from 44 attendees its first year in 2012 to the high of 150 in 2018. After coordinating eight conferences though, he was stepping aside and would be handing off the task to MTS Committee members Matthew Kaufmann, ASA, and Joshua George, ASA.

Planning has already begun for the 9th Annual Equipment Valuation Conference. It will be returning to the same location in Cleveland, June 1-3, 2020.