If you have spent any time in the world of business, you are probably aware of the old proverb saying that to earn money, you need to spend money. Without the intention to re-evaluate the worth of this ages-old maxim, we would like to add, nevertheless, that the modern business environment requires a more conscious approach.
Sure, your manufacturing business can always benefit from a couple of well-placed investments, but the modern playing field is so dense and the COVID-19 economy is so broken that not every big spend will create a satisfying return.
Here, we are going to take a look at a couple of neat ways to save money on equipment for your manufacturing business while still getting the results you need to stay in the game.
1. Buy Second-Hand Equipment
This rule does not apply to the equipment that is essential for the manufacturing process, although even in this case, you will most likely be able to find quite a few pieces that will keep your lines rolling in the years ahead. Industrial manufacturing is a complex process that includes numerous non-essential tools like industrial presses, forklifts, maintenance equipment, and similar items that, even with some mileage behind them, don’t hurt the efficiency of your business. Of course, all these second-hand tools are far more affordable than brand-new alternatives.
2. Consider the Issue of Energy Efficiency
This is, at the same time, one of the main reasons why we advised you against using second-hand equipment that plays a significant role in the manufacturing process. To put it simply, older tools feature far worse energy efficiency than the newer models. Years of consistent use knock these already unsavory numbers a couple of inches lower. So, the money you would save upfront would be paid back in the following years, if not months, on energy bills. Fortunately, this street goes both ways, and investments put into energy efficiency always pay off long term.
3. Put Big Money into Pieces That Really Matter
This topic is closely related to the one we have discussed just above. The equipment pieces that are essential for the manufacturing process need to be able to go through years of attrition without losing efficiency. The best example can be found in the realm of expandable oilfield equipment like plugs, retainers, and valves that wear out incredibly quickly and create additional costs if not in top-tier conditions. In cases like this, you want to have the best pieces the money can buy so you can squeeze out every ounce of productivity in the following years.
4. Make Sure You Actually Need It
As we can see, retaining an optimal manufacturing efficiency means you actually need to invest considerable amounts of money in the areas that truly matter. But, you can at the same time make tangible saves if you manage to correctly identify what these productivity hubs are. Investing your assets into new, hot pieces without adequately assessing the extent to which they will contribute to the overall efficiency is a one-way road to disaster. So, skip the expensive gimmicks, research what tools produce the biggest ROI, and put your money where it truly makes a difference.
5. Make Deposits for the Future
The modern industrial sector is undergoing a huge overhaul driven by the technology trends born in the ongoing digital revolution. With the playing field changing so fast, the investments and practices that are making sense today may be considered dated the very next year. That is why you need to keep a very close eye on everything going on in the realm of IoT (Internet of Things), blockchain machine learning. Acquiring the pieces compatible with these technologies can help you reap the fruits of this ever-evolving digital era and keep the less forward-looking competitors at bay.
6. Know When to Repair and When to Replace
Maintenance is the key to sustainable efficiency. If you are facing frequent performance drops and production bottlenecks, replacing the critical industrial tools may not necessarily be the remedy your facilities need. In most cases, high levels of productivity can be maintained with nothing more than diligent and thorough maintenance that costs far less than brand new equipment pieces. This is why you need a very detailed maintenance plan and good insight into what problems can be solved with repairs and when you need to hit the store.
We hope these few considerations gave you a general idea about the ways you can save money and make deposits for the future when the time comes to replace some of the equipment pieces. Staying afloat in this turbulent economy means your investments need to be careful and well-placed. Making a proper judgment is usually complicated and requires thorough research and a cold head. But now you at least know where to start.