With summer months coming to a close and our focus shifts back from family vacations to getting our hands dirty within our businesses, it’s also a great time to review the capital budget and current assets to identify opportunities for greater operating efficiency or higher performance and output. While there may be dozens of reasons why now is a great time to invest in new packaging equipment, we have put together our top 4 reasons to purchase new or upgrade your machines today.
Stay Current With Safety Requirements
Manufacturing safety standards do not often see drastic changes, however even one mishap on a machine that does not meet today’s safety standards you’ll likely be dealing with a headache from OSHA, legal actions, workers’ compensation, and reduced productivity. By performing an annual safety audit of your machinery you can save thousands if not hundreds of thousands of dollars—or more—on potential losses from a single incident.
Incremental Technology Upgrades
While complete replacement may not be necessary, control units for heavy machinery typically has an upgradable service life of 5-7 years, so while the machine is still functioning, you can improve reliability and performance of an existing machine at a fraction of the cost of full replacement with a software upgrade or new controller. Also worth noting, the greater the interval between upgrades, the more difficult and costly it can be to jump software versions.
Reduce Operating Overhead
Depending on the volume of business you handle, the savings through more efficient equipment can offset the cost of the upgrade. From reduced energy consumption to reduced production waste results in not only a cost reduction, but also a more sustainable, eco-friendly operation—a marketing advantage worth exploiting.
Realize Tax Incentives For Upgrades
Whether it’s used for cartoning, marking and coding, or wrapping, new packaging equipment comes at a substantial installed price. Fortunately, businesses can take advantage of the Section 179 deduction for equipment purchases, allowing a deduction of up to $500,000 in the first year.
When staring at an equipment quote totaling in the hundreds of thousands into millions, it’s easy to be gun-shy; but before you retract, it’s advisable to review all tax incentives, operating overhead reduction, and safety features that can will your business be more profitable for years to come. Before signing the dotted line on that new piece of machinery, give the industrial equipment financing experts at ENGS a call to learn how we can get that new equipment in your business fast and with excellent financing terms, designed to fit your business’ financial needs.