When your manufacturing business is trying to grow, it's vital to make sure you can make all the right investments, whether that comes in the form of people, equipment or space. With the exception of building an entirely new facility, you're unlikely to spend more on any one purchase than the price tags that come with the production equipment and other machinery you need to work effectively.
With that in mind, you should look into all the ways you can ensure your equipment is as effective as possible without hurting your bottom line overall:
1) Dig into the numbers
There's a lot more to consider when it comes to equipment investments than just the initial price tag, according to the Business Development Bank of Canada. What are the ongoing costs associated with things like power consumption, maintenance and routine parts replacement? How much more efficient or feature-rich is it than your current machinery? Does it take up more or less space? These are all important considerations, and you have to crunch all the numbers to figure out when or if such a purchase is right for your company.
2) Ask for advice
Whenever you're trying to decide on the right products to purchase, it helps to get a little bit of advice or feedback from others you may know in the business that have made similar purchases, the BDC advised. This kind of conversation will potentially provide insight that you can't get from an online review of a product, especially because you can ask questions that are pertinent to your specific operations.
3) Don't feel like you need to buy new
When you're buying new equipment for your factory, it's important to remember that new-to-you can still be an upgrade without the massive price tag of brand-new machines, according to Science & Enterprise. Certainly, finding the options that fit your unique needs may be a little more difficult, but a little extra work to find that just-right equipment at a better price could help you save a considerable amount of money.
4) Find the right model
Along similar lines, you don't necessarily need the most expensive, top-of-the-line piece of equipment in your facility, Science & Enterprise said. In many cases, there may be options that better fit within your budget and still meet your company's requirements. Here, too, extra research will help you right-size this purchase and set your business up for long-term success.
5) Prioritize energy efficiency
Again, the cost of powering machines should certainly factor into your decisions about what to purchase, and if you get that more efficient equipment, you may find its higher price tag pays for itself over time, according to Confectionery News. If your equipment is even 5% more efficient and you use it for 10 or 15 years, that could provide thousands of dollars in savings versus what a less efficient piece of equipment would have cost you in the end. The smaller environmental impact is just a bonus as that point.