Is now the right time to invest in your business?
Even though the “great recession” is history, many business owners continue to face a soft—or at the very least turbulent—business environment. A natural response to uncertain times is to reign in your spending. In reality though there are still good reasons to make equipment investments. Converting from oxyfuel to plasma cutting is a good example. True, a plasma system costs more to purchase, however, cut speeds tend to be several times faster than oxyfuel. Plus, they provide significantly better cut quality, resulting in fewer secondary operations and less rework, all of which adds up to a substantial time savings. Some other reasons, new equipment can:
- Increase productivity or lower operating costs. A higher rate of productivity from faster cut speeds and fewer secondary operations impacts cash flow. When your employees have a higher rate of throughput, you have less of your own money tied up in inventory and more finished jobs you can invoice. Quick turnaround of high quality products leads to satisfied customers and repeat business.
- Make you more competitive by allowing you to enter new markets or take on new jobs. Take inventory of jobs you’ve done over the past several months. Have you had to turn down or outsource jobs because they involved a material you couldn’t cut? How often have you done so? What is it costing you?
- Build customer loyalty by offering a better service or a better quality product. In other words, your customers are scrutinizing their purchases just as you are, and want a company that can provide them with the best combination of product cost, quality, delivery time, and even customization. If the right tool helps you meet delivery deadlines or improve the quality of your product, you will distinguish yourself from your competition and increase loyalty among your customers.
- Help kill two birds with one stone. Would you be better off with one tool that can do multiple jobs? With plasma, you can cut stacked metal, metal grate, and even rusted or painted metal with ease. Plasma systems are also great at gouging metal to remove old welds or prepare for new ones. Waterjet and laser allow to cut an even greater array of material. The bottom line: choose the right tool and you won’t need to drag out a different piece of equipment to get the job done.
- Make it easier to retain good employees and lower your training costs. Hiring and keeping good employees continues to be one of the biggest challenges for businesses. Finding and training a new employee can easily double your yearly cost for that person. Good employees appreciate technologies that make their jobs easier and are loyal to companies that invest in their safety and productivity.
- Lower your taxes. New equipment purchases provide a tax deduction in the form of depreciation taken over a set number of years. It also may be worth checking into tax incentives for business investment at either the federal or state level
What do you think about this list? Have you invested in your business lately?