Seven Hidden Risks When Purchasing Imported Powder Coating Equipment
For over a decade, there has been a steady increase in the demand from U.S. manufacturers for professional quality powder coating equipment. This includes products ranging from small spray booths, manual coating guns, and batch curing ovens to large-scale powder coating systems with chemical pretreatment washers and automated powder application guns. The demand has been driven by the easy, environmentally friendly application process, the low application cost, and the superior finish quality that powder coating provides.
In response to this increased demand, the market has changed slightly in recent years. Stable, established brands continue to thrive based on the proposition of providing quality equipment and solid customer support, but some well-known companies have changed names, modified their product offerings, re-branded their products, or adjusted their sales tactics in an effort to better capitalize on current demands.
There are also new companies trickling into the coating equipment market with a focus on low cost rather than high quality products and excellent customer service. Inexpensive scaled-up “hobby” systems that aren’t suited for professional use are now sold on numerous websites aimed at newcomers to professional coating. Along with the proliferation of these inexpensive products, there has been an increase in the number of companies selling used equipment–which brings its own headaches.
The most notable shift, however, has probably been the appearance of new sales outlets offering lower-quality imported products. As U.S. companies strive to get the most bang for their buck, the appeal of less expensive equipment provided by overseas manufacturers is undeniable. Some foreign manufacturers are making an effort to sell directly, while others rely on distributors to access the U.S. market. A strong sales effort, combined with flashy demos and lower acquisition costs, can make these imported products seem like a viable, cost-effective solution at first glance, but there are seven pitfalls that businesses need to be aware of before making a purchase decision.
1. Quality Concerns: Overseas products are often associated with lower acquisition costs, but this can come at the expense of quality. While some foreign manufacturers offer high-quality products, many cut corners to reduce costs, resulting in subpar products that require frequent repair and component replacement. This is especially true with finishing equipment, where the appeal is almost always limited to pricing, not performance, longevity, or innovative design. Investing in lower-quality equipment can lead to unplanned downtime, decreased productivity, and higher long-term costs.
2. Lack of Warranty and Support: Many overseas manufacturers do not offer adequate warranties or support for their products when they are sold in the U.S. In the event of equipment issues, purchasers can struggle to find assistance or replacement parts, leading to extended downtime and lost revenue. Language barriers and time zone differences can further complicate communication and severely limit support efforts. Michael Schuerer, president of Reliant Finishing Systems observed, “In the past few months, we’ve been involved with companies who either reached out to us for help with their imported finishing equipment or were looking for alternatives after becoming apprehensive. In one case in particular, the amount of support the buyer received was incredibly skimpy, especially considering the multi-million dollar price tag. They’ve been dealing with late delivery, inadequate technical drawings, poorly labeled parts, parts that were damaged in shipping, and a massive communication roadblock. Making matters worse, the overseas engineering team that was supposed to help manage installation was denied entry into the United States.”
3. Import Duties and Taxes: Importing equipment from overseas often incurs additional costs in the form of import duties, taxes, and shipping fees. These secondary expenses can significantly inflate the overall purchase price and may catch businesses off guard if not factored into the budget beforehand. Fluctuating trade tariffs and geopolitical tensions can further impact importation costs and inject delays, adding another layer of uncertainty for purchasers.
Credit Rosenfeld Media
4. Code Compliance: Coating equipment will typically need to meet certain regulatory standards, such as NFPA 86, NFPA 79, and NFPA 33, to ensure safety and compliance. Overseas manufacturers may not always adhere to these standards, and in some cases seem to have no awareness of them because of the lack of regulation in their own countries. This may result in businesses having to invest additional time, money, and engineering resources in modifying the equipment and/or absorbing the costs for testing and certification processes. Failure to meet safety requirements from organizations like OSHA can result in fines, delays, and potential legal repercussions.
5. Hidden Expenses: Beyond the initial purchase price, importing equipment from overseas can involve various hidden expenses, such as warehousing fees and inspection costs. It can also involve costly hassles once the equipment is delivered, such as the installation of power converters, the reprogramming of HMIs that aren’t set up for the English language, and the addition of safety devices that are common in U.S. workplaces but weren’t provided with the equipment. These expenses can quickly add up and erode the perceived cost savings, especially if not accounted for in the budgeting process.
6. Supply Chain Issues: Purchasing a new coating line that is wholly dependent on an unproven overseas supplier involves significant supply chain-related risks. These include transportation delays and component supply chain failures that could severely impact the delivery of the initial system, as well as cause future delays with repair and maintenance parts. Even if there are no issues with importation, supply chain disruptions can have massive consequences when dealing with products that don’t have an established support base in the United States. A hiccup with the supplier can prevent the new coating line from being operational on time, can lead to production delays while waiting on maintenance parts, and can introduce additional costs associated with expedited shipping or alternative sourcing.
7. Long-Term Maintenance and Spare Parts: No matter who provides it, powder coating equipment will eventually require maintenance services and replacement parts to ensure optimal long-term performance. While overseas manufacturers may offer lower upfront pricing, potential purchasers should consider the availability of filters, nozzles, bearings, electrical components, and other maintenance and repair parts. This is especially true with pretreatment washers, spray booths, gun systems, or ovens that may have proprietary components or unusually sized filters, motors, or other parts. It’s also critical to understand who will—or will not—be available to assist should the equipment need service. As a general rule, most established finishing equipment companies in the U.S. won’t service imported off-brand equipment, so the purchaser may find him or herself on their own. Difficulty sourcing compatible parts or securing timely repairs can result in prolonged downtime and lost revenue.
Importing overseas powder coating equipment may initially appear to be an effective way to minimize spending for capital equipment, but U.S. businesses should carefully evaluate the hidden risks associated with this decision. Prioritizing product quality, warranty and technical support, regulatory compliance, and long-term maintenance considerations over a low purchase price will change the decision making process and help ensure a more sustainable and cost-effective investment.
If you’re in the market for professional powder coating or industrial painting equipment, or you’d just like to talk with an expert about your current coating equipment or processes, please give us a call at 256-355-9000 and we’ll be glad to help!