4 Ways to Save on Equipment for Your Business

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If you run an industrial, manufacturing or storage facility, capital expenditures on equipment ranks up there with taxes, rent and labor costs. However, many new businesses struggle when comes the time to buy crucial pieces of equipment. Fortunately, there are many ways that you can cut corners and cut costs on equipment. Here are four ways you can save on equipment for your business.

forklift

Buy Used

Used, second hand, pre-owned. It doesn’t matter what moniker you use. The fact is that used equipment like machinery is a bargain when you factor the cost of the equipment against the remaining operating life. The ideal case is buying barely used equipment at a bankruptcy sale or buying two to three year old processing equipment that is being replaced by the latest and greatest equipment mandated by a business’s largest customers. However, there are other times you can save a huge amount of money.

For example, you could buy an old forklift and have it repaired. Large companies, in particular, will opt for new equipment when the good equipment is starting to age and need repairs, though it has years of operational life left. Pick up the equipment their computerized maintenance management system says to replace and take it to a shop specialized in forklift repair Toronto. You’ll get good as new equipment at a fraction of the cost of new, even factoring in repair costs.

Invest in Maintenance

One way to save money over the long run is by investing in maintenance. Don’t try to run equipment on the same filters and oil for as long as possible. It is cheaper to replace these consumables over the long run than wear out and replace the equipment. You’ll also delay the need for physical repairs by investing time and resources into regular maintenance. Then there’s the fact that you are less likely to have unplanned breakdowns until late in the life of the equipment if you keep up with the planned maintenance.

Look at What You Need Versus What You Have

Before you assume you need a new, more expensive piece of equipment, bring in an industrial engineer or lean process improvement expert. Look at how you could better utilize the equipment you have and alter the workflow to maximize production before you start shopping for new equipment. The bottleneck may be material handling processes or quality control, not the equipment itself. In other cases, adding more people to supply the equipment may be a cheaper alternative to faster, more expensive supply lines. Or you could look at renting small supplementary units upstream or downstream to see if that piece of equipment truly is your bottleneck as well as use that time to test the impact on the rest of the facility by increasing production at that one location.

Shop Around

It may sound surprising, but you can save a lot of money on equipment by shopping around. If you still need to buy new equipment, look at what used equipment could meet your needs or which mid-market products fill production requirements instead of assuming the top of the line item is the best choice. Research different suppliers instead of selecting from the catalog of the first industrial salesperson you meet.

If you need to buy equipment for your business, consider the above tips to save

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