Visiting MMTS? Get pre-approved for funding

With the world tracking to return to normal, or a new normal, we are fast approaching one of the first major manufacturing events for the Canadian metalworking industry since the pandemic: the Montreal Manufacturing Technology Show (MMTS). This machine tool exhibition occurs during the even years in downtown Montreal but took a break during the pandemic. Now it’s back.

The show will be held at the Palais des congrès de Montréal June 14-16. What I find best about this show is how extremely easy it is to visit and cover. The equipment is located strategically to showcase some of the newest technologies, which for the most part, can be delivered as soon as the show ends.

The entire exhibition can be viewed in one day, but more importantly, it is very easy to meet and spend time with the principals and upper management for every significant seller of machinery in Canada. This can be a problem when attending international shows because they tend to be configured with large, and at times, overwhelming exhibits that draw lots of visitors. These booths tend to be extremely busy in years when the market is good, so finding any one individual, much less having a meaningful conversation with them, can be a tremendous challenge.

Conversation Is Key

The key factor for MMTS is the booth space, which is arranged by local representation and by machine tool manufacturers.

On a personal level, what I always found most important about attending these smaller shows was the ability to interact with local customers. Having come from the sales side of the machine tool industry and working out of a Toronto-based head office (before my career in equipment finance), there weren’t many opportunities to interact face-to-face with our Quebec-based clients.

Our distributorship had a very loyal customer base in Quebec, which was developed over many years. Although we represented good equipment and provided first-rate service and support, it was our ability to develop close relationships with our customers that allowed us to continue to sell them equipment.

There is nothing more important than the ability to pick up a phone and know exactly who is on the other end. It is by attending a local show like MMTS that these relationships are first established and, in turn, strengthened.

I remember one year we were working on selling a large multiaxis CNC lathe to a new client in Montreal. The sales cycle and delivery for such a machine was months-long because its specific configuration meant it needed to be ordered from the factory. The plan was to finalize their purchase order at the show, but when we were about to close the deal we found out our competitor had a stock machine that was about 15 per cent less expensive, which they could deliver immediately after the show. The only way for us to salvage our deal was to provide one of the machines we had on our booth as a short-term rental until the properly configured machine from the factory was available.

Had we not been at the show in-person, and had the support of our manufacturer, there is no way we would have won the business.

Even though I have now spent more than 12 years in equipment leasing, I still get calls from old machinery customers looking for advice or requiring funding for their latest purchases. This happens because of the face time I have spent with them in the past.

As a father of two teenagers, I have a front row seat to watch how the world is changing when it comes to communication. But as someone who has also spent his entire career in sales, I know that when I can get in front of potential client, my ability to do business with them increases significantly.

Having spent many hours at MMTS, first as a machinery seller and then as a financier, what has become noticeable over the years is that most business owners do not attend the show just for the experience.

There is no doubt the industry is its own little world, and if you’ve been in it long enough you will run into some old friends. In reality, anyone attending is doing so with a specific purpose in mind. Usually there is a piece of equipment at their shop that needs to be upgraded or replaced, or they are looking for new ideas to improve efficiency and increase profits.

Get Pre-Approved

I tell my clients to get a pre-approval in place before going to the show, particularly if they are thinking of making a purchase. This allows their chosen financial institution to let them know how much money is available, and it gives the buyer an idea of what they can spend and what their approximate monthly payment might be. With this in hand, it becomes a simple business decision as to whether to proceed.

Before the pandemic, the most common theme a potential buyer came across at one of these exhibitions is a “show special.” However, these days the challenge for equipment manufacturers and vendors is inventory [ok?]. Although the distributors are always under pressure to move product, right now visiting a show could provide the opportunity to buy a machine right off the show floor.

This means there is an even greater importance to visit MMTS with a pre-approval in hand and a goal of securing a new piece of technology which, I can assure you, is a very productive use of your time.

Ken Hurwitz is vice-president, Equilease Corp., 416-499-2449, ken@equilease.com, www.equilease.com.