£59 billion in assets sitting idle in UK businesses, finds new research

£59 billion could be sitting idle in UK businesses that are holding on to working assets and equipment they no longer need, according to new research commissioned by Ramco.

In a survey, conducted by Censuswide for the circular economy specialists, two thirds of respondents representing around 3.7 million UK businesses admitted they are holding on to good quality working equipment they no longer need. They survey revealed businesses could have, on average, over £10,000 worth of assets sitting idle.

Research also found that senior managers disliked the idea of unwanted equipment being either scrapped on left to ruin within the business, but despite this, 59% of survey respondents revealed they have sent working equipment to landfill in the last five years.

Neil Sanderson, founder and MD of buyer and seller of second-hand business assets Ramco, commented:

“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.”

Ramco revealed that it finds electrical goods, followed by industrial and plant machinery are its buyers’ most sought-after second-hand items, with 66% of businesses regularly seeking second-hand equipment over buying new. Neil Sanderson continued:

 “It’s frustrating to see how much untapped potential there is when it comes to second-hand business goods. From catering equipment to plant machinery and vehicles, 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 generate capital. None of us can afford to waste resources – for the planet and for profit.”