Global research among 927 satellite professionals by Skybrokers International shows that only 7% prefer 'only new' and 32% primarily new equipment. The majority prefers 'only used' 18% and primarily used (43%) equipment. According to Walter van der Plas, CEO of Skybrokers, the research shows that satellite professionals cut cost on their purchasing budgets to survive a declining market.

Van der Plas: “We started the research among our clients because we noticed a change in the type of inquiries during 2011. Customers are more and more searching for the best deals and requesting proposals for new equipment in combination with proposals for used equipment.”

Research done by Dr. Joseph N. Pelton, Professor with the Institute for Applied Space Research at the George Washington University, showed that the satellite industry operated flexible during the last crisis (2001, 2002). During this period the demands for used equipment also increased significantly.

“Equipment brokers love a down economy because the availability of equipment from bankruptcies, mergers and surplus stock is increasing. On the other hand the acceptance of used equipment by service providers is growing because they are looking to cut expenses any way they can. This trend in the market is understandable, but buyers need to be careful. Buying de-installed equipment brings risks of incompleteness and failing equipment. This could be more costly on the long-term.” Van der Plas says.

The research of Skybrokers showed no difference in preferences between satellite professionals in declining markets e.g. Europe, US and the Middle East and growing markets e.g. Asia and Brazil.

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Posted by Janine E. Mooney, Editor

February 2, 2012