Reconditioning your equipment is a great measure to take to improve your equipment and save money down the road; in fact, it could save you $31,000 or more a day!
The more obvious reasons in the list, such as reducing unplanned downtime, go a long way in saving money in the production line. However, there are a few hidden gems that cut down on costs when you recondition your equipment.
We’ve broken down the savings of $31,000 a day by each category. To find out how reconditioning will save you money, read more below!
Here’s how reconditioning equipment will save you money:
Cut down costs on buying new equipment
When you recondition your equipment, you are extending the life of that equipment and enhancing its production abilities. With solid equipment on your production line, you don’t have to worry about buying new equipment to replace it.
New equipment can be expensive, with robots starting around $80,000. Thankfully, you can purchase refurbished robots and equipment for less than half the price. For the sake of conservatism, we’ll average the purchase of a used robot for $8,000.
Savings: $8,000
Reduce Downtime
Unplanned downtime is the crux of all manufacturing facilities. When industrial robots or equipment start failing, the cost of downtime destroys a company’s profit.
A study on downtime costs showed that the average cost of a downtime incident in a manufacturing facility is $17,000 and could potentially reach up to a quarter million dollars in one day! It’s well worth reconditioning equipment to skip the tens of thousands of dollars in revenue lost due to downtime.
Savings: $17,000
Improved customer service and support
Customers are the most important part to a company’s survival. Without them, there would be no revenue. That’s why it’s important to cater to customers and ensure that they have the best experience possible with your product or service.
When you recondition your equipment, you are providing quality manufacturing that will create a better product. This means less need for returns and loss of customers. According to a study from Forbes, businesses across the US lose $62 billion per year in profits due to customer loss. Retain your customers and increase your revenue by reconditioning your equipment.
Savings: A lot! (But let’s say $5,000 per customer for a general estimate.)
Increased safety
Equipment that is working properly will have less defects. This means that there will be a lower risk for injury or accidents for humans working with or alongside the equipment.
In 2018, the total cost of work injuries was $170.8 billion. The average cost for one employee’s injury is over $1,000, with the potential to be even greater depending on severity and time out of work. By reconditioning your equipment, you can protect your employees from harm and save money on costly medical expenses.
Savings: $1,000
The savings add up when you recondition your equipment.
After breaking down the savings for each way that reconditioning equipment will cut down costs, the grand total comes out to $31,000 per day. As we mentioned above, this is a conservative estimate and is likely much greater depending on the size of your factory, your product, and your customer base.
That is a considerable savings. With that number in mind, it’s worth it to recondition equipment to cut new equipment purchase, prevent downtime, retain customers, and increase safety for your employees. With some forward thinking and preventative maintenance, you can increase your revenue, protect your staff, and maintain your customers.
Recondition now for a long-lasting, better product.
iGAM offers reconditioning services to get your equipment back to factory-new conditions.
With iGAM’s reconditioning services, you can return your equipment to the production line with greater efficiency and productivity. We offer a three-tiered system for you to choose your level of reconditioning so you can stay on budget while enhancing your facility. Contact iGAM today to learn more about our reconditioning services!