David is joined by John Bouley of Furnace Brokers International to discuss heat treating ovens, how they differ from furnaces, and their appraisal values.
About this segment of Blackbird TV
Guest: John Bouley, President, Furnace Brokers International. To learn more about our guest, visit fcebr.com, or call 860-875-3712.
Recorded: February 24, 2021
Published: March 16, 2021
Segment transcript
Super excited, John Bouley from Furnace Brokers is joining us on Blackbird TV for this segment. I really appreciate you joining us today. Thank you, I’m glad to be here. I have a Blue M oven photo that I shared with you, and I know that it’s an oven, and just for a minute the big mystery: what makes an oven and oven, and a furnace a furnace? An oven is typically sheet metal construction sandwiched around insulation, and a furnace is normally steel constructed and lined with either brick or lightweight refractory. If you backed into an oven with a forklift you would damage it, if you backed into a furnace with a forklift you’d probably hurt the forklift. So that’s the big difference: much much more meatier piece of equipment, much heavier and much higher temperature. Ovens typically stop at about 11-1200 degrees in temperature, and that’s where furnaces start. And then the furnace goes hotter than that? Furnaces go up to thousands of degrees. Couple of good tips for the appraisers. So let’s talk about this Blue M oven. I’m the appraiser, I actually took these photographs, tell me what I did wrong tell me what I did right and tell us about this and what you think about it. You did a good job you captured the whole picture, and we can see the controls and it sits on a stand. We have an inside picture, that’s very important whether it’s a furnace or an oven, to have an inside picture, really helps a lot because you get a better feel for the condition of the unit. When I look at this, I see a shelf on the inside I see some of the controls and there doesn’t appear to be anything wrong with it, so you did this is a perfect presentation of a cabinet oven, and also you got a picture of the data tag, so I probably wouldn’t have any questions for you. I’d be able to say that this is worth X amount of dollars period. So as an appraiser we’re walking through, the factory’s working, and there’s a batch, the oven like most of the time these ovens are in use, so what do we do when we can’t get in the oven? What do you recommend? That happens a lot, so if you got good inside pictures and you got information on the data tag but you can’t I just did I just did one with a guy the other day and it was operating and we just have to make an assumption that it’s in it what’s in workable condition because it’s operating, but it could affect the price if you opened it up, and got an inside picture and the thing is like brand new inside, well that’s going to bring a little more money and it’s going to be quicker to sell, but without that inside picture we would have to assume it’s probably middle of the road because it’s in operating condition. So a note to the appraisers that are watching, if you can always open the door and get a picture of what’s inside. Right. Open the door real quick, you just take a quick picture and then put the door back down or close it. Yeah I think I’d ask the client before I did that. Let’s look at… “whoops I’m sorry I ruined that batch…” let’s let’s look at at the picture, tell us about that and how it differs from the Blue M that we just looked at. It’s another cabinet oven, but it’s just a different design. This one’s pretty tall, it’s a low temperature but it’s it’s the same, and these pictures is a good picture control good picture of the inside this is a perfect presentation. I think. Which one of these two is worth more money? This second one is worth a little more money. It’s got a little better controls and it’s a bigger work area and the yeah this is a little higher temperature so this one would be worth more, and is newer than the first one. Excellent, these are all the things that we should make as notes as appraisers. Now let me ask you from a lender’s perspective if you’re making a loan and there’s there’s these types of ovens in the collateral list do these types of ovens make good collateral? They typically do, they’re what I would call a big market item by that I mean there’s a big market for this kind of stuff it’s amazing it’s amazing how many different types of industries would use a cabinet oven, people are heating things, they’re curing things, and there’s a lot happening at 500 degrees on down with these, so you can you can de-stress a part with these or you can you can heat up a ceramic piece with these, you can do tons of things with these and they’re easy to load on a truck which is always a problem when you’re trying to liquidate, is who’s going to do the loading and how much is that going to cost? These are really easy to disconnect and put on a truck. Excellent and that makes good collateral because it’s easy to take out and there’s a broad market for it, which are really the benchmarks for that. This has been fascinating and really informative, John, I thank you for your time today. Oh thank you very much, glad to do it!