About 80% of new products fail within 18 months after they reach the market. From a contract packager’s perspective, that high failure rate presents a potential problem because a lot of equipment and capital are being invested in products that go bust.
A growing number of contract packagers are solving this challenge by renting pre-owned equipment to stretch their capital budgets and minimize the effects of product failure. Currently, the rented pre-owned segment is the fastest-growing area of the equipment marketplace. It increased 23% between 1997 and 2004.
