If you run a manufacturing operation you won’t need to be told how expensive it can be to acquire and maintain the equipment and keep others costs such as energy, under control.
If you are looking for powder coating equipment for example, you can get details at Reliant Finish Systems, but whatever it is that you need in order to operate your business, it makes sense to try and keep your costs as low as possible.
If you are trying to get to grips with your operating expenses and reduce costs where possible, the best starting point in that quest is to undertake a complete assessment of all aspects of your business and processes.
You need to be able to identify where your cash is currently going and what equipment and other overheads you currently have, so that you can begin the task of identifying where savings and improvements can be made.
This is a process that should not be taken lightly, and in the vast majority of cases, your diligence will often be rewarded with some significant savings being identified.
Aim to look at each individual component of your business and review each piece of equipment you currently use, so that you make an objective assessment of whether it is time for a change or upgrade, in order to improve efficiency
It goes without saying that the level of return you get on your investment in equipment does make a substantial difference to your business and feeds down directly onto the bottom line.
Completing an assessment can be an arduous process and while it is perfectly understandable to see why some manufacturing businesses can go a number of years between audits, this is a situation that could be costing you dearly.
Manufacturing technologies are constantly evolving and improving, which means that by the time you actually get around to reviewing your equipment and processes, you are quite likely to discover that the way you are doing things might even be obsolete and costing you more to operate than it would if you made use new technologies available.
If you understand why ROI matters, it is essential to regularly review what you are using and what new technology is available to you, so that you can see how you might be able to improve efficiency and reduce costs at the same time.
It is not always about replacing
Replacing obsolete equipment is a major cost consideration and it is not always necessary, so look at all of your options before making the changes.
It is worth exploring the possibility of retrofitting new technology into your old equipment so that it is updated and still very much fit for purpose.
This is not always going to be possible of course, but looking at ways to improve what you have already got, will certainly save some money, which makes it an idea worth looking at.
Create a green policy
Saving energy costs and being more environmentally-friendly is a good thing for your business in a number of ways.
The obvious advantage is that by conserving energy and being more efficient, you will be saving on running costs. The other point to consider is that your customers will often want to know that you have an active green policy in place.
Work on creating a green policy that covers all aspects of your business operation, from encouraging people to switch off lights and equipment when it is not in use, to recycling wherever possible.
Check out the credentials of new equipment
As part of your commitment to a green policy, you should also ask some pertinent questions when considering buying some new equipment.
If you have decided that you need to buy some new equipment, ask about how energy efficient it is. You can sometimes find that equipment that offers greater savings on energy and running costs in general, might cost more to purchase than models with less green credentials.
Even if it costs more to buy a piece of equipment which is more efficient and saves you money, it is plausible that you achieve greater savings in the long run, so don’t always be blindly influenced by the upfront cost.
By implementing some cost-saving initiatives and reviewing your procedures on a regular basis, you give yourself a greater chance of maintaining a competitive edge. It is also likely that these positive changes will translate to a healthier profit margin.
About the Author:
Tom Pritchard has years of experience of running a manufacturing business. Now semi-retired he takes great pleasure in being able to help the younger generation as he shares his business knowledge around the world wide web.