Investment Recovery Association Email Us
638 W. 39th St.
Kansas City, MO 64111
1+ (816) 561-5323
FAX: 1+ (816) 561-1991
TOLL FREE 1 800-728-2272
Investment recovery is the practice of recouping the value of assets no longer needed by a company by identifying and reusing or disposing of surplus assets. Investment recovery professionals also locate usable surplus from outside sources. As experts in asset management, investment recovery professionals save their companies -- who are primarily Fortune 1,000 businesses -- millions of dollars each year. Following is an overview of investment recovery and examples of the bottom-line contributions it makes to American corporations.
According to member data collected by the Investment Recovery Association, investment recovery departments save their companies an average of $8 million a year; individual companies have saved as much as $150 million a year from the asset management services of investment recovery professionals.
According to Investment Recovery Association member data, 70 percent to 90 percent of every sales dollar generated by investment recovery goes straight to the bottom line as profit.
For every dollar generated by an investment recovery department activity, $20 in sales would be required to generate the same net effect to the company's profit.
Corporations in virtually every industry have investment recovery departments, including utilities, chemicals, food processing, forest products, petroleum and gas, metals, government, educational institutions, electronics, pharmaceuticals, transportation and consumer products.
While investment recovery departments provide asset management services for an average of 52 locations within a corporation, some departments serve as few as one or as many as 250 locations.
Depending on the industry, asset categories can include equipment and machinery, manufacturing, repair and operations supplies, obsolete and/or discontinued materials, by-products and waste, buildings and land.
Investment recovery professionals use a variety of specialized methods and strategies to recover the value of an asset, including redeploying it to another location in the company, returning it to the manufacturer or distributor, selling it, trading it for another asset, giving it away, and paying to safely dispose of it.
The value of the investment recovered in an asset is measured in a variety of results such as increased utilization of assets through deployment of unused equipment and other materials; improved return on investments; reduced or eliminated disposal and maintenance costs; added source of revenue from sales; and minimized tax liabilities.
The investment recovery function also pays off in improved corporate morale, because one means to dispose of surplus items is to sell them to employees at bargain prices. Employees also feel good about working for companies that are resourceful with assets rather than wasteful.
Investment recovery professionals can earn a professional accreditation from Investment Recovery Association called Certified Manager of Investment Recovery (CMIR). Investment Recovery Association represents more than 200 companies with investment recovery departments and provides ongoing education, training and networking opportunities to members.
