Manufacturing equipment: should you lease or buy?

MATT NICHOL| May 09, 2018
MANUFACTURING EQUIPMENT: SHOULD YOU LEASE OR BUY?
June 30 is creeping up fast. With it comes the inevitable question of whether it’s time to invest in new equipment or wait until the next tax year. This question is even more urgent for small and medium businesses who are counting the final days of the $20,000 instant asset write-off, arguably one of the best tax breaks for small businesses in Australia.

Spotlight

Twin City Fan Companies

Twin City Fan Companies, Ltd. is a group of fan companies that manufacture and sell a complete range of centrifugal and axial propeller fans, power roof ventilators and related equipment. The Minneapolis headquarters is home to all corporate, sales, engineering, accounting, marketing and administrative functions. A state-of-the-art air and sound test lab adjoins.

OTHER ARTICLES

Wireless AGVs May Prove Most Important ProMatDX Innovation

Article | April 1, 2021

April 12 -15 ProMatDX, the largest material handling event, will take place virtually. It will feature dozens of AGV vendors. Sadly, some of these highly innovating products still need to be plugged-in to capture power. No more. Wiferion in process charging eliminates the plug-in charging making AGVs truly autonomous. In process charging eliminates the waste of AGV downtime – the fleet is always working AND charging. In process charging is safe ensuring the OSHA, ergonomics, and danger to workers significantly reduced. In process charging is cost-efficient because full vehicle deployment means a reduced fleet count ensuring a rapid ROI. For OEMs of AGVs and industrial trucks implementing inductive charging technology solves the wear and tear issues caused by conventional charging methods as well as making vehicles fully autonomous. For end-users of AGVs and industrial trucks, inductive charging in combination with lithium batteries can improve fleet availability by more than 30%. Whether driverless transport systems (AGVs), electric forklifts, or mobile robots (AMRs), the efficient use of industrial trucks is a decisive factor for competitiveness during ever- increasing cost pressures. The energy systems are being scrutinized and lithium-ion batteries are the preferred technology. The advantages versus lead-acid batteries (including the ability to recharge faster and more often) are obvious. Until now the full potential of storage technology has not been fully realized.

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Trends to Boost Your Manufacturing Business in 2022

Article | October 27, 2021

Technologies in the manufacturing industry are upscaling daily. Manufacturers are keen to embrace the latest manufacturing trends to improve their manufacturing process, total production rate, and product quality at their factories. Manufacturing technology advances have also boosted production speed while retaining product quality. “As technology takes over and enhances many of the processes we used to handle with manual labor, we are freed up to use our minds creatively, which leads to bigger and better leaps in innovation and productivity.” – Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca. Apart from manufacturing technology developments, we will look at new manufacturing business trends in this article, which will help you achieve maximum customer engagement and a positive relationship with your target consumer groups. So, let's see some of the top manufacturing business trends that are assisting the industry in improving its business processes. Manufacturing Business Trends: 2022 Manufacturers must adopt a business procedure that focuses on the target consumer group. Also, incorporating social responsibility and technology into company procedures would be beneficial. Here are five ways manufacturing leaders are becoming more communicative and results-oriented in their manufacturing and consumer experience strategies. Deliver a One-of-a-kind Digital Experience Every industry's target demographic is now online. Manufacturers must use digitalization to interact with their target consumer group to be noticed and remembered. Maintain an active presence on all popular digital platforms used by your target demographic. Post your new products, business strategy, or get genuine customer feedback on your brand and products. Engage your target audience and keep them informed of your progress in making their lives easier. “Marketing is VERY important to any company, although I generally see it being justified by the number of web hits or ‘leads’ that come in” – John Hays, Director of Sales at BALYO Allow your clientele to interact with your products digitally. To be a part of the new digital revolution in any industry, create a new digital business model. Initiative for Ecosystem Partnership An ecosystem partnership is a network of enterprises working together to provide a product or service to meet changing market needs. A partner ecosystem can generate customer-ready solutions faster. It also helps firms to co-create value. This value is demonstrated in extraordinary customer and partner experiences. The B2B ecosystem partners work together to bring mutual benefits to their companies. Revenue Generation via Data Monetization Data monetization allows industrial CIOs (Chief Information Officers) to monetize their digital products and services. Rapid digitization in manufacturing generates massive data. CIOs may monetize and distribute data across ecosystems. CIOs can leverage information as a resource to generate new services or business models. This ensures revenue even when external reasons like supply chain issues or human resource shortages interrupt the firm. Using the Equipment as a Service (EaaS) Approach EaaS, or Pay-Per-Use, is defined as: A business model where equipment is rented rather than sold, with remote diagnostics and predictive maintenance solutions offered by the vendor. Using Eaas reduces capital expense, improves data reliability, and lowers operating costs. As a result, producers can undertake all production-related tasks with precision. Bosch RexRoth CytroBox – a Perfect Example of EaaS The global equipment-as-a-service market is estimated to develop at an 11.5 percent CAGR from 2021-2027. (OpenPR) The RexRoth Cytrobox from Bosch is an example of EAAS. This hydraulic power unit converts electrical power into hydraulic fluid pressure and flow to move and force a machine. They are widely utilized in presses and tooling equipment. It can handle up to 33 kW in a small space. Its exceptionally flexible; its unique design allows it to run efficiently and quietly. In addition, modern automation and sensor packages allow easy integration into modern machine designs. Benefits of Bosch RexRoth CytroBox It provides data insights during the long lifecycles Using this hydraulic power unit on a lease can save a lot of money which cost $100.000 It requires heavy maintenance cost as per its type of usage that can be avoided with the EaaS approach Shifting the Emphasis from B2B to B2C Many firms are moving their attention from B2B to B2C to understand their target consumer better. This new strategic approach helps producers identify market needs and gain real-time feedback on their products. This method helps producers increase profit margins while also controlling the product's interaction with the intended audience. Final Words The latest manufacturing trends will take you to the cutting edge of manufacturing. The manufacturing developments in 2022 will boost the total manufacturing market in the coming years, allowing manufacturers to generate more business revenue. FAQs What is the manufacturing industry's future? Industry 4.0 is rapid technological progress in production and is transforming the worldwide manufacturing industry. According to bccresearch's market research, the global manufacturing and process control market is predicted to increase from $86.7 billion in 2020 to $117.7 billion in 2025, a CAGR of 6.3 percent. What is the industry 4.0 technology in the manufacturing industry? IoT, industrial internet of things (IIoT), Cyber-physical systems (CPS), cloud computing, artificial intelligence, big data, machine learning, robotics, virtual reality, augmented reality, and additive manufacturing or 3D printing are some technologies that are used in industry 4.0 factories. What are the current technology trends in the manufacturing industry? AI, robots, 3D printing, and the like are all the latest manufacturing trends in manufacturing technology. Additionally, enterprise resource planning (ERP), cloud computing, and machine vision all play a significant part in advanced manufacturing. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What is the manufacturing industry's future?", "acceptedAnswer": { "@type": "Answer", "text": "Industry 4.0 is rapid technological progress in production and is transforming the worldwide manufacturing industry. According to bccresearch's market research, the global manufacturing and process control market is predicted to increase from $86.7 billion in 2020 to $117.7 billion in 2025, a CAGR of 6.3 percent." } },{ "@type": "Question", "name": "What is the industry 4.0 technology in the manufacturing industry?", "acceptedAnswer": { "@type": "Answer", "text": "IoT, industrial internet of things (IIoT), Cyber-physical systems (CPS), cloud computing, artificial intelligence, big data, machine learning, robotics, virtual reality, augmented reality, and additive manufacturing or 3D printing are some technologies that are used in industry 4.0 factories." } },{ "@type": "Question", "name": "What are the current technology trends in the manufacturing industry?", "acceptedAnswer": { "@type": "Answer", "text": "AI, robots, 3D printing, and the like are all the latest manufacturing trends in manufacturing technology. Additionally, enterprise resource planning (ERP), cloud computing, and machine vision all play a significant part in advanced manufacturing." } }] }

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The Unrelenting Growth of Technology in Manufacturing

Article | May 13, 2021

When the manufacturing industry began to embrace digital technology a decade ago, it adopted a new identity — smart manufacturing or Industry 4.0. Applying cloud, automation, analytics, machine learning and big data to production operations created a connected ecosystem for manufacturing and supply chain management, and became a high-growth market. At the start of 2020, the sector was on track to grow into a market worth more than $300 billion in the coming five years. Then the pandemic hit. By spring, millions of workers had lost their jobs. Some plants closed temporarily or slowed production so workers could spread out to maintain a safe distance from one another. Investment in smart manufacturing fell too, by 16 percent between March and April alone. Some researchers predicted that such a pull-back would dampen investment through 2025. But the conversations we’ve had with C-suite manufacturing executives and service providers suggest investment in smart manufacturing will intensify. By 2025, it could be worth more than $400 billion. It’s no wonder.

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Scaling, Optimizing & Pivoting with Smart Manufacturing Industry 4.0

Article | January 20, 2022

A smart factory that leverages Industry 4.0 concepts to elevate its operations has long been a model for other industries that are still figuring out how to travel the digital manufacturing route. Smart manufacturing technology is all you need to know if you're looking to cash in on this trend. “Industry 4.0 is not really a revolution. It’s more of an evolution.” – Christian Kubis In this article, we'll look at the advantages that many smart factory pioneers are getting from their smart factories. In addition, we will look at the top smart factory examples and understand how they applied the Industry 4.0 idea and excelled in their smart manufacturing adoption. Industry 4.0 Technology Benefits Manufacturing Industry 4.0 has several benefits that can alter the operations of manufacturers. Beyond optimization and automation, smart manufacturing Industry 4.0 aims to uncover new business prospects and models by increasing the efficiency, speed, and customer focus of manufacturing and associated industries. Key benefits of Manufacturing Industry 4.0 in production include: Improved productivity and efficiency Increased collaboration and knowledge sharing Better agility and adaptability Facilitates compliance Improved customer experience Reduced costs and increased profitability Creates opportunities for innovation Increased revenues World Smart Factory Case Studies and Lessons to Be Learned Schneider Electric, France SAS Schneider Electric's le Vaudreuil plant is a prime example of a smart factory Industry 4.0, having been regarded as one of the most modern manufacturing facilities in the world, utilizing Fourth Industrial Revolution technologies on a large scale. The factory has included cutting-edge digital technology, such as the EcoStruxureTM Augmented Operator Advisor, which enables operators to use augmented reality to accelerate operation and maintenance, resulting in a 2–7% increase in productivity. EcoStruxureTM Resource Advisor's initial deployment saves up to 30% on energy and contributes to long-term improvement. Johnson & Johnson DePuy Synthes, Ireland DePuy Synthes' medical device manufacturing plant, which started in 1997, just underwent a multimillion-dollar makeover to better integrate digitalization and Industry 4.0 smart manufacturing. Johnson & Johnson made a big investment in the Internet of Things. By linking equipment, the factory used IoT technology to create digital representations of physical assets (referred to as “digital twins”). These digital twins resulted in sophisticated machine insights. As a result of these insights, the company was able to reduce operating expenditures while simultaneously reducing machine downtime. Bosch, China Bosch's Wuxi factory's digital transformation uses IIoT and big data. The company integrates its systems to keep track of the whole production process at its facilities. Embedding sensors in production machinery collects data on machine status and cycle time. When data is collected, complicated data analytics tools analyze it in real-time and alert workers to production bottlenecks. This strategy helps forecast equipment failures and allows the organization to arrange maintenance ahead of time. As a consequence, the manufacturer's equipment may run for longer. The Tesla Gigafactory, Germany According to Tesla, the Berlin Gigafactory is the world's most advanced high-volume electric vehicle production plant. On a 300-hectare facility in Grünheide, it produces batteries, powertrains, and cars, starting with the Model Y and Model 3. For Tesla, the goal is not merely to make a smart car, but also to construct a smart factory. The plant's photographs reveal an Industry 4.0 smart factory with solar panels on the roof, resulting in a more sustainable production method. On its official website, Tesla claimed to use cutting-edge casting methods and a highly efficient body shop to improve car safety. Tesla's relentless pursuit of manufacturing efficiency has allowed them to revolutionize the car industry. Haier, China The SmartFactoryKL was established to pave the way for the future's "intelligent factory." It is the world's first manufacturer-independent Industry 4.0 production facility, demonstrating the value of high-quality, flexible manufacturing and the effectiveness with which it can be deployed. The last four years, SmartFactoryKL has been guided by particular strategic objectives that drive innovation; the aim is to see artificial intelligence integrated into production. Two instances of AI-driven transformations include an "order-to-make' mass customization platform and a remote AI-enabled, intelligent service cloud platform that anticipates maintenance needs before they occur. Final Words Enabling smart manufacturing means using the latest technology to improve processes and products. The aforementioned smart factory examples are industry leaders and are thriving by implementing Industry 4.0 technology. Small and medium-sized enterprises (SMEs) may use these smart factory examples to learn about the adoption process, challenges, and solutions. Industry 4.0 is aimed at improving enterprises and minimizing human effort in general. So adopt the smart factory concept and be productive. FAQ What is the difference between a smart factory and a digital factory? The digital factory enables the planning of factories using virtual reality and models, whereas the smart factory enables the operation and optimization of factories in real time. Where does Industry 4.0 come from? The term "Industry 4.0" was coined in Germany to represent data-driven, AI-powered, networked "smart factories" as the fourth industrial revolution's forerunner.

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Spotlight

Twin City Fan Companies

Twin City Fan Companies, Ltd. is a group of fan companies that manufacture and sell a complete range of centrifugal and axial propeller fans, power roof ventilators and related equipment. The Minneapolis headquarters is home to all corporate, sales, engineering, accounting, marketing and administrative functions. A state-of-the-art air and sound test lab adjoins.

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