No one wants to make a mistake when it’s about spending hundreds of thousands (or even millions) in the purchase of an industrial machine.

The true is today the competition level is high and some companies prefer to invest at the last moment or as a last resort.

This never always results in buying the most suitable equipment, so how not to encounter this misadventure?

1. Formalize your needs as a priority

The definition of your needs in relation to the expected result is your first step.

You can start to ask your technical departments to write detailed specifications and detailed comparative tales.

If you’re having a hard time formalizing your needs, define a minimum set of specifications.

Think about the production conditions (batch size, rates, number of variants, number and level of operator qualification, the frequency of feed, etc.) and the essential features of the tool (a spindle power or a moving speed for a machine tool, for example).

This will make it possible to dimension the means of production correctly without imposing too many restrictions on it.

2. Define and size the future installation

After the first step comes the time of technological choices and to avoid pitfalls, better take some precautions.

To begin, the entire installation must subject to a calculation of return on investment.

It’s also essential to calculate, step by step, manufacturing costs per pieces, and to compare them with outsourced solutions.

Then, take into account changes in production and consider all the possible scenarios on critical installations.

Like the previous one, this step can be assumed by the company but it may be wise to call in a specialized consultant or teams of technical centers.

It’s important to know how to take advantage of manufacturers’ technical skills by demanding detailed cost or return on investment data during the negotiation process.

The manufacturers must be able to give useful advice to the potential buyer from a set of specifications.

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3. Take all possible criteria into account

General speaking, you must take the time to think if you want to avoid mistakes.

It’s always worth paying attention to some important details before investing.

Starting with staff training opportunities and after-sales service. To do so, feel free to ask for a list of customer references to contact a few.

Do you maybe want to schedule an installation visit? Consider the delivery time of the machine is an important criterion as well.

Another interesting possibility is to invest in a used machine available immediately and cheaply.

Finally, what about testing the installation? This can be decisive.

4. End the project financing

Many companies integrate their investments into their operating budget and each project is studied by a team of people from different service (design, production, maintenance…).

Smaller purchases can also be self-financed but facilities such as machine tools can be financed by leasing

Everything must be sifted: the rationality of the investment, evaluation of the savings generated, the order book of the company, ratio of indebtedness, but also the residual value of the machine, its adequacy with the tendencies of the market and the future regulations.

Depending on the complexity of the financial package the instruction time of a file can be fast (48 hours) or longer. In principle, it does not exceed two weeks.

However, some interventions may be ruled out, especially when the project may put the company in difficulty.

Finally, note that the temporary exemption, currently in progress, from the business tax and its planned reform, may reduce the interest in leasing.

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