At year-end some companies find themselves with a cash surplus. In this situation, the question becomes, is it more profitable to invest or keep the cash in the bank? The decision to invest in new equipment is, without a doubt, one of the most important decisions a company can make. Having a solid plan in place for capital expenditure can ensure that your business is well positioned for long-term growth, avoiding the cost of downtime due to ageing/failing analytical equipment and helping your business to be more productive.
If you’re looking to improve on quality assurance, process control, or even to meet new and ever-changing specifications to minimize risks, capital expenditure in the near future could be more of a “must have,” rather than a “should have.” Quality Magazine recently conducted an annual spend study to identify trends in US plants’ on quality assurance equipment. Over half of respondents stated quality in their business is more important now, than ever. It comes as no surprise then that the average spend in capital expenditure in 2018 was projected to increase by a massive 18%.
The Quality Magazine study found that the key driver for investment amongst quality departments was to reduce scrap and rework, improve productivity, and increase production capacity followed by compliance with tighter quality standards. Companies dealing with a global supply chain are increasingly aware that they need to “trust but verify,” since they have a liability for every part they produce. There is an increasing need for “100% PMI,” and continual sampling during all phases of the manufacturing process, from incoming inspection through to the final inspection stage. If you are sitting on a cash surplus at year-end it could be the perfect opportunity to reinvest or upgrade your QA/QC equipment.
An investment or an upgrade of equipment can ensure that your business remains relevant to the market by ensuring that you do not become obsolete to the customers you serve. Today’s quality managers in the manufacturing and the metals industry are aware that X-ray Fluorescence (XRF), Optical Emission Spectroscopy (OES) and Laser-Induced Breakdown Spectroscopy (LIBS) are field-proven techniques. These techniques are increasingly written into the requirements of new specifications in numerous industries such as automotive, aerospace, electronics, and energy. Instead of leaving your cash in the bank, reinvesting now to grow and adapt your business to accommodate new specifications could be a pivotal ‘power play‘, enabling your business to win faster and bigger than once anticipated.
At Hitachi High-Tech, we have over 45 years of experience helping companies get results from their analysis. Don’t hesitate to get in touch with our team of experts and see if we can help you improve your productivity. Talk to Hitachi about optimizing your quality programFind out more