Thousands Attend Equipment Auction

Good times or bad, there's a hard and fast rule. Something's only worth what someone's willing to pay.

On a hundred-acre field in Humble, filled with thousands of what some call "big boy toys", buyers and sellers have come together in a critical mass of pure capitalism.

"The bargain is the lure, there's no doubt about it," says Nick Nicholson of Ritchie Brother, the world's largest industrial auctioneers.

Attracted to the massive gathering of machinery are more than 2,500 potential buyers from 45 states and 40 countries. As each piece of equipment rolls across the line before bidders, someone's surplus becomes another's solution or at least that's the way it's supposed to work.

"Trouble with an auction, until you get it home and running for six months you may not know whether you made a good deal or not," says buyer Dale Kornegay, CEO of Boring & Tunneling Co. of America.

"This is all free market, pure capitalism," he adds of the no-reserve auction.

The event has attracted a huge number of international buyers. Hundreds of used pipelayers, back hoes and excavators will head overseas via the Port of Houston. Others will stay here as the fundamental tools of budding entrepreneurs.

"This is a one stop shop for a contractor and many businesses are started here," says Nicholson.

Rufus Melvin says you can count him among them. He traveled to the sale from Hillsboro, Tx. looking to find the perfect used Peterbuilt tractor.

"I've been working all my life, 25 years or more and so now its time to do something on my own now," he says.

In these sour economic times it may surprise some that less than 5 percent of the equipment offered came from failing businesses or bankruptcies.

The sale will continue through Friday and proceeds are expected by observers to exceed $60 million.

The auction is Ritchie Brothers first at it's new facility near Highway 59 and Beltway 8 northeast of Houston.