How to Determine What Equipment Needs an Upgrade
Whatever industry you operate in, you’ll likely have several pieces of equipment that help you get things done. Using work equipment can improve efficiency, productivity, and keep your employees safe and out of harm’s way.
However, keeping your equipment running at its best can be a challenge. Over time, maintenance costs for your equipment can become higher. You may start spending more and more on replacement parts. Eventually, there will come a point when you wonder if it’s time to upgrade your equipment. This can be a tricky question, as it involves some planning and money.
Here are some ways to determine if it’s time for an equipment upgrade.
You’ve Outgrown It
If you find that your current equipment doesn’t fit your needs anymore, it may be the right time for a change. Perhaps you bought it when your operations were smaller. Now, with a more extensive client base, it is just not efficient enough to meet demand. When your equipment is no longer serving its purpose, it’s time for an upgrade.
Maintenance Professional Recommends an Upgrade
You know it is time to replace your equipment when a maintenance professional suggests it. Even if they don’t say anything, talk to them about it when it comes time for regular maintenance. Keep in mind that a professional can often see issues that could become more significant problems in the future. They should tell you when continuous care will be more expensive than the machine is worth.
You don’t want to keep putting money into a piece of equipment that has a high potential for breaking down, thus leading to a bottleneck at work. When your maintenance professional recommends an upgrade, it’s time to consider your options seriously.
Cost Outweighs Benefits
No one will have to tell you about this one, but when the machine starts to cost you more than it benefits you, it’s time to upgrade. This should be evident in your financial statements. For example, if your equipment starts to cost you as much as it would to use the manpower to do the work, you need to change it out.
As your equipment ages, you’ll need to gauge whether it is still safe to work with or not. When your machinery presents a risk to you, your employees, or anyone else at your site, you should consider an upgrade. It’s helpful to keep a record of all the equipment your company owns. Write down details such as:
Age of equipment
Potential maintenance issues identified
Having this information at your fingertips can help you decide when it comes to upgrading your equipment. It can also save you inspection expenses, which may be necessary if you have not kept accurate records about the components of each piece of equipment.
Seek an Equipment Appraisal
If you’re on the fence about when to replace your equipment, contact a professional for an equipment appraisal. At Michaels Global Trading, we are skilled at the art of appraisal. Our team will give you an accurate picture of what your machine is worth and where you can get the most value from it. When you need help deciding whether to hang on to your equipment or to swap it, contact Michaels Global Trading for advice.
Loss of Revenue
If new equipment can help your team get the work done faster and more efficiently, you’ll need to plan for an upgrade. Acquiring new equipment today could help you grow your business, stay competitive, and end up paying for itself in a short amount of time. Calculate your return on investment of upgrading by determining how much more work, productivity, etc. you’d be able to get from new equipment. However, to be sure that upgrading your equipment is worth the cost, consider factors like:
Cost of parts
New software for equipment
Training costs for employees to become skilled with the equipment
Extra work you can get done with the upgraded equipment
Technology has been advancing rapidly over the past several years. If you bought your equipment a few years ago, there is a good chance that it is no longer competitive in the industry. If that’s the case, you’ll need to upgrade it to stay in the game or risk losing customers.
To determine if this is the case, consider what your competitors are doing and what they offer. Are they able to perform more tasks than your team? Have customers been talking about the number of options that your competitors offer? These are signs that you’re losing your competitive edge. Don’t let that happen. Upgrade your equipment so you can provide the service that your customers expect.
Consider how quickly your equipment’s performance is dropping. Each piece of machinery that your company owns has a life expectancy. That refers to how long it will operate before becoming too much of a burden to your business.
Think about where your equipment is in its expected lifetime and how much time you have before it’s done. If your machines are still running well, but nearly the end of their life, it may be best to let them run their course. This will give you extra time to make a careful upgrading decision.
Deciding to Upgrade
While deciding to upgrade your equipment can be a tough decision, it’s vital to think about how to grow your business continuously. You don’t want to be stuck with old, useless equipment that costs you more than it’s worth.
No matter what industry you’re in, the question of whether to upgrade your equipment or not is one you’ll need to consider carefully. Weigh out the costs and the benefits and seek a professional equipment appraisal as you make your decision.
For more information about equipment appraisal services in Toronto, call Michaels Global Trading at 1-888-902-7531 or contact us here.