The phone rang and it was Steve Poke, Calgary-based director of equipment for the environmental services firm Tervita, calling from Edmonton. Poke was engaged at that very moment selling off some 30 pieces of construction equipment through an auction being run by California-based IronPlanet.
The auction was the firm’s first full on-site auction in its new Canadian base in Edmonton, following a successful trial run last October.
Cellphone connections aren’t always the best between Ontario and Alberta and the poor link was compounded by somebody talking a mile a minute in the background — the auctioneer. Poke said he had to be ready for when a lot of Tervita equipment went up for auction and his turn was coming up soon.
Tervita was taking advantage of the slowdown in the economy to fine-tune its equipment needs, he explained.
"With the downturn right now, we’ll be replacing and revamping our equipment in a couple of years," he said.
None of the equipment was in Edmonton — it was sitting in Tervita yards in various provinces. But potential buyers online and onsite in Edmonton had all the information they needed in online catalogues prepared by IronPlanet, through its Cat Auction division.
With the U.S. dollar being so strong and the U.S. construction sector chugging along right now, demand is high for construction machinery being put on the market by Canadian firms looking to right-size, and so Poke was confident he would have a good day at the IronPlanet auction.
"I think everything in this auction will be sold," said Poke. "I am very confident it will be sold."
Now Sue McGregor is on the phone, also in Edmonton. She too has stepped out from the auction. McGregor is the managing director for Canada with IronPlanet and she is pleased with the buzz surrounding this event, held March 30.
Canadians have participated in online IronPlanet auctions for years but McGregor has the task of further establishing the brand in Canada in part through on-site auctions at its Edmonton yard. She is confident her firm is in the right location, despite the fact that major rival Richie Bros. holds construction equipment auctions in Edmonton as well.
Edmonton is centrally located for buyers and sellers who prefer to deal in person, she said.
"There has been a lot of industrial development in Edmonton whether it’s supporting oil and gas, mining or the infrastructure that supports some of the industry, so there is a lot of equipment in general that is in the Edmonton area," said McGregor.
"Our competitor, one of their biggest auctions is in the Edmonton area as well so there is a lot of supply."
Based on the solid results from last year’s trial, IronPlanet intends to run four auctions in total in Edmonton this year and McGregor says they are contemplating eastern Canada for later in the year.
IronPlanet invested in a 12-acre headquarters in Acheson, just west of Edmonton, where buyers can store and examine equipment. What the firm brings to the table, McGregor says, is professionalism and diversity of services.
"We’ve got a lot of different auctions for both buyers and sellers," she said.
"We hold physical, onsite auctions like we are holding today, we hold weekly online auctions, we have specialty equipment auctions like cranes.
"And we’ve got comprehensive inspections and guarantee the accuracy of them. A buyer can go online, they can look at 100 pictures and read a condition report, where everything is noted, damage or wear, and they can see fluid samples and we analyze them so they can look at the wear of metals in the oil.
"You know exactly what you’re getting."
While online sales have transformed the auction business, in-person sales remain a major component, says the Vancouver native who now lives in Edmonton.
"Some people just want to look at the equipment, to touch it," said McGregor.
Selling globally through online sales tends to ensure that when there is a regional downturn, as in western Canada, there might be buyers elsewhere, she noted.
"We are able with our system to track the demographics and geographics of where our buyers are coming from and certainly we are seeing with the dollar exchange and with their improving economy a lot more U.S. buyers than we saw a year ago," said McGregor.
They are not put off by shipping costs and the hassle of customs paperwork, she said. McGregor is confident IronPlanet can thrive despite being the newcomer on the scene.
"We’re giving people choice," she said.
"Like any service, any product, people like to have choice."
Experts believe that with the United States construction sector performing well there is a demand for equipment being put on the market by Canadian firms who might be downsizing due to domestic pressures.
Photo: IronPlanet"
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