With the dramatic pace of today’s technological advances and innovation, entrepreneurs and business owners might assume that buying the latest and greatest equipment available is the best decision for the business. But that’s not always the case.
Deciding on New vs. Used Equipment
Investing in injection molding equipment is a different decision for every business. Purchasing new equipment is not always the best choice, especially when there are used machines that can be great options too. But, how can business owners know which one to get? When is it better to invest in new, leading edge equipment and when is it better to save investment money and opt for used, refurbished equipment?
Tips for business owners to consider:
Determine immediate and anticipated near-future needs of the business.
Since it is a case-by-case basis, each business must evaluate the needs, productivity, financial, and other contributing factors going into the decision to purchase new or used equipment.
Does the company need a temporary replacement? Maybe it’s best to opt for the used injection molding equipment as a stopgap measure until new equipment is available or affordable. Will the company be using the equipment for a long time in the future? Then getting new machine might be a better choice.
Research available options including price, installation time, operating costs, capacity, and expected useable lifespan.
Keep in mind: Sometimes lead times preclude new equipment, even if new equipment would be the better choice. What are the operating costs for the new and old equipment? What are the production capacities throughputs for the new and used injection molding equipment? Can used equipment last in the intended production environment?
List the pros and cons of both options.
Compare the function, price, efficiency and risks of new vs. used to ensure that older technology can support intended purposes and will not cost more to operate.
New Injection Molding Equipment:
Pros:
- Technology is current
- Newer technology may equate to more productivity, more efficiency and more competitive edge
- Often there is warranty included in the purchase
- Possible tax benefits
Cons:
- More expensive
- Can take longer to acquire
- Harder to replace when newer upgrades become available
Used Injection Model Equipment
Pros:
- Lower cost
- Satisfy company’s needs without breaking the budget
- Routine maintenance can extend lifespan
- Possible tax benefits
Cons:
- Equipment is not cutting edge
- Does not always include a warranty
- Can come with hidden financial costs
- If not carefully refurbished, can be a time-bomb waiting to go off
Check Safety Considerations
Whether a company buys new or used injection molding equipment, it is crucial that it meets safety standards. Business owners and entrepreneurs should also practice due diligence when investing in injection molding equipment, and think critical of the information they learn about it. The best route for ensuring that the equipment meets safety standards is to have it checked out by a qualified technician.
Ensuring the safety of the company, workers and employees should be one of the top priority of a company, not just revenue and reputation.
