IronPlanet to expand equipment sourcing operations
IronPlanet will use strategic alliances to broaden sourcing operations
IronPlanet chairman and chief executive officer Greg Owens has revealed plans to use strategic relationships to broaden his company’s equipment sourcing operations – both inside and outside of the auction sector.
At present, IronPlanet sources machinery predominantly from the North American and European markets, but Owens says that a strategic alliance with online marketplace Mascus – alongside partnerships with GraysOnline and ClearAsset – will allow his firm to engage with sellers from other regions.
“Mascus is a very strategic relationship for us,” said Owens. “We’re actually programming a column in Mascus for IronPlanet. Let’s say you’ve had an item on Mascus for some time and it’s become rather dated; you haven’t sold it through the listings process. You’ll actually be able to check a button, and through the click of a mouse, that item will automatically be lined up for IronPlanet’s next auction.”
Owens contends that the new cross-functionality between IronPlanet and Mascus will allow his company to expand its equipment procurement operations.
“From a sourcing standpoint, I hope that this gets us into some markets that we’re not in right now, such as the Middle East, South Africa, and others,” he told ConstructionWeekOnline.com. “Mascus operates in all of these areas, so by the click of a button, we’ll actually be able to source from more countries too.”
This new option, which is still in the development phase, will be integrated with IronPlanet’s ‘IronClad Assurance’ process, through which equipment sold during auctions is inspected and assured. Essentially, if an item is not in the condition that IronPlanet says it’s in, the company will buy it back.
In addition to its strategic alliance with Mascus, IronPlanet also partnered with Australia’s GraysOnline and South Africa’s ClearAsset during 2013. It is hoped that these strategic relationships will allow the firm to broker deals in other parts of world, specifically within the mining sector.
“The mining area is obviously a very global business,” explained Owens. “You see it over in the Middle East, South America, South Africa, Australia, Indonesia, and certainly in Canada and the western United States. This is a sector in which you have huge machines, and you don’t want to move them any more than you have to. What we’re trying to do with our partners is to put transactions together through our marketplace and through our global reach – making sales happen outside of the auction industry.
“We’re really just getting started with this,” he continued. “We’ve had some really good success over Q4 2013 and Q1 2014. It’s only been in operation for the last two quarters, but I think this could be a substantial growth area for IronPlanet.”
Since 2007, IronPlanet has enjoyed a compound annual growth rate (CAGR) of 17.2%, and the firm recently passed the milestone of one-million registered users. However, not content to rest on their laurels, Owens and his colleagues plan to engineer further growth during the coming years.
“Obviously, we want to be much larger,” he explained. “We feel like we’ve built up a lot of critical mass over the last five years. We’ve gotten to a pretty large level, but I see some other areas that I want to enter. We’ll probably continue to enjoy a lot of organic growth, but I’m also looking to acquire some growth as well.”