When buying industrial machinery, many companies focus only on reducing the initial purchase cost. However, there are many other hidden running costs that can add up in the long run. Here are some of those hidden costs – and how you can reduce them.
When buying industrial machinery, you need to consider whether you’re buying from and how it will be delivered to you. Certain machinery may come with high shipping costs and may have to be delivered in parts before being assembled on site by a professional. Buying machinery from local buyers can often save you money. If machinery needs to be delivered in parts, check whether assembly costs are included (if you’re buying directly from a manufacturer, assembly should be included in the overall cost).
It’s worth looking into fuel/energy consumption when buying a machine. Not only is a more efficient machine better for the environment, but it will save you money in fuel/energy costs. Older machines tend to be less efficient than newer machines. In the case of fuel-reliant machines, you may be able to save costs by shopping around for suppliers. There are many places where you can find cheap deals of red diesel. In the case of energy, you may be able to save money by comparing quotes from different energy providers. There are commercial energy provider brokers that you can use for this.
Cleaning and maintenance
Machinery will need to be cleaned and well-maintained to keep it working in good condition. Make sure that machinery is regularly serviced either in-house or by outsourced technicians. This will help you to spot faults and take action if necessary. You can save money on repairs by making sure that machinery is in good condition when you buy it. Used machinery can be a lot cheaper to buy, but its parts are likely to be worn, so you could find yourself making repairs sooner. It’s worth also reading reviews of manufacturers to get a good idea of the reliability of their machinery.
Training and licensing
Certain machinery may require employees to be trained and licensed before operating it. For instance, forklift trucks and cranes can only be manned by employees who are trained and licensed. Alternatively, you may be able to get employees to part-pay towards courses. In other cases, when hiring specialist one-off equipment, you may be able to outsource operators with equipment.
A lot of companies have no choice but to buy machinery on finance. When doing this, it’s important to consider the interest rates that you’ll be paying in the future. Flexible rate loans can be risky – try to stick to fixed rate loans if you can so that you know exactly what you’ll be paying from month to month. Having a good credit score will often allow you to access lower interest loans.