Often companies that want to move into automation realize they will achieve significant cost savings in the long term, but have difficulty with the upfront capital commitment in the short term. With smart equipment financing, the immediate capital cost disappears, and the financing costs are compensated for by the savings, resulting in a net positive budget from day one.
Here’s a real-world example. A company is hand-loading their cosmetics into tuck closure cartons. To keep up with their production of about 30 cartons per minute, they have five workers assigned to the task of manually opening, loading, and closing the cartons, at an average total cost of $12 per worker per hour or $60/hour total.
This company invests in a J+W CCM-MV automatic cartoner, allowing a single worker to load 30 cartons a minute while the machine does all the other cartoning work. The resulting labor savings comes to $48 per hour. The company finances the machine, including all delivery and startup costs, for under $2000 per month, or just about $11 per production hour. That’s an immediate positive ROI of $37 per hour, or over $6000 in savings per month, with no upfront capital cost!
The exact numbers will of course vary depending on the details of the application and the equipment required. Call us today at 770-788-9601 to discuss your particular needs and let us show you how much you could be saving right away!
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