In today’s business environment, there is a great emphasis on reducing manufacturing costs. Companies go to great lengths to improve equipment and plant reliability but they often find it difficult to pinpoint exactly when their machinery needs to be replaced.
Business owners need to take several factors into consideration when deciding whether or not to replace old equipment. Let’s take a look at some of them now.
Should You Replace Construction Equipment?
If there’s a catastrophic failure of the engine, it’s a good idea to replace your equipment. Even if you employ a few mechanics, you’ll be better off asking them to work on daily maintenance instead of making them spend hours fixing a particular machine.
You also need to take machine downtime into consideration. If it’s going to take several weeks to get the equipment up and running again, you will lose revenue. You could, of course, hire equipment and bear the cost of rental fees. If you’re going to use the machine 60-70% of the time, though, it will be more cost effective to buy than rent. Besides, new or re-manufactured machines come with extensive warranties, so you won’t have to worry about the cost of unplanned repairs.
5 Tell-Tale Signs That It‘s Time to Replace Your Equipment
- The equipment shows a marked decline in performance across many jobs
- The equipment consistently takes longer than before to complete jobs
- The equipment is outdated or not as productive as efficient and modern versions – new construction machines come with enhanced safety features and intelligent systems that make the job go much faster.
- Your current fleet can’t handle the demands of the current project – investing in new equipment will help to maintain the reputation of the company.
- The equipment poses a safety risk – if you run machines that are unsafe, you may sustain significant injuries. You may also encounter financial losses and legal issues.