Investing in Tech Is a Strategy, Figuring ROI Is a Strategic Tool
This short article by Jeff Reinert, president of Index Corp., outlines the multi-step process for justifying an investment in the latest CNC machining technology. Calculating the return on investment (ROI) is a useful step in this process, but only one of the factors a manufacturer must consider in the decision to buy a new machine. Read the article here.
Share
Why invest in new CNC technology that seems unfamiliar, even a little scary? Jeff Reinert says that a bold approach to justification can show shops that they need to jump in if they want to compete.
This short article by Jeff Reinert, president of Index Corp., outlines the multi-step process for justifying an investment in the latest CNC machining technology. Calculating the return on investment (ROI) is a useful tool, but only one of the factors a manufacturer must consider in the decision to buy a new machine.
Reinert identifies three main steps:
- Understand your machining costs and evaluate impact of a faster, more capable process.
- Understand potential benefits of the latest CNC technology (Reinert lists eight measurable ones as a start).
- Understand the costs of older equipment (including operator skills that may vanish).
After taking these steps, calculating ROI can be a concise and useful analysis to back up a decision. However, as Reinert explains, ROI is not the same as profitability and competitiveness. His advice puts the ROI calculation in perspective.
Related Content
-
Building Machines and Apprenticeships In-House: 5-Axis Live
Universal machines were the main draw of Grob’s 5-Axis Live — though the company’s apprenticeship and support proved equally impressive.
-
Inside Machineosaurus: Unique Job Shop with Dinosaur-Named CNC Machines, Four-Day Workweek & High-Precision Machining
Take a tour of Machineosaurus, a Massachusetts machine shop where every CNC machine is named after a dinosaur!
-
Finding Skilled Labor Through Partnerships and Benefits
To combat the skilled labor shortage, this Top Shops honoree turned to partnerships and unique benefits to attract talented workers.
