Can you make your investment pay?
If you are responsible for making a capital purchase for your food business, you will of course be asked to justify the expenditure and show how you can maximise the return on your investment. More than ever, there needs to be a pretty good reason for your business to find a large sum of money for that new machine. Some of the reasons you might look at are to:
• Decrease running costs and maintenance
• Increase output
• Increase quality of the processed product
• Reduce operational labour costs
• Handle new functional requirements
Perhaps the key indicator here is the return on investment (ROI). This calculation evaluates how long it takes to earn back – or generate cash – to cover the initial cost to purchase a piece of kit. Historically, food manufacturers have held long term views, meaning that three to five years was common place. Now, it is normal to insist on a payback of just a year to get a project off the ground – quite a challenge for suppliers to work with!
As well as helping you through the process of defining efficiency increases, energy and labour savings and increased quality, here at newtech, we have geared our equipment to focus on two key areas: flexibility and future-proofing.
These are tough times and in order to remain competitive, equipment that can only process a small range of product variants can quickly be consigned to the corner of your factory floor gathering dust and becoming obsolete – hardly what you’d call a good investment! Whether you’re purchasing a ‘standard’ processing machine, or commissioning a bespoke unit to match your individual requirements, you really do need to think about where your business is headed over the next few years.
With careful planning in conjunction with a trusted automation supplier, you can easily navigate the pitfalls of the process. There will be all sorts of obstacles put in your way by your Financial Director, whose job it is to be naturally prudent and only spend money when it’s really needed. Your job is to build a strong case for how, when and where to spend it – to make the business better and more profitable and life just a little bit easier for your FD.
So, to talk to us today about how a future-proofed newtech solution can save you time and money, give us a call on +44 (0)1234 783 680, or email sales@newtech-ltd.co.uk.
