Hypertherm, US-based manufacturer of plasma, laser, and waterjet cutting systems, has produced an informative article for manufacturers, asking some intuitive questions surrounding the productivity of their current cutting operations following the recession and whether new equipment can help.
The scars from the ’great recession’ are long lasting. Ten years since one of the worst economic downturns in history, business owners continue to take a cautious approach to new equipment purchases. They are scrutinising purchases more than ever to ensure the purchase is needed and will deliver the right return on investment. Often, it all comes down to productivity. Will the new equipment help increase productivity and lower operating costs?
Take your cutting equipment for example. A higher rate of productivity from faster cut speeds and fewer secondary operations impacts cash flow since you’ll have less of your own money tied up in inventory and more finished jobs you can invoice.
Productivity gains pay off quickly because labour costs are typically one of the largest operating expenses for any fabricator or manufacturer. As an added bonus, when a new cutting system replaces an older unit, you will also experience lower operating costs since improvements in technology can result in increased consumable life and energy efficiency, and improved ease of use. In addition to productivity, here are three questions to ask yourself.
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