Using your equipment to the end of its life cycle may sound good in theory, but actually has many unforeseen costs behind it. These are some of the biggest costs that your company can endure due to not updating and replacing its equipment with one of the heavy equipment financing companies like Equify Financial:
Old equipment causes downtime
Outdated equipment will break down at a faster rate than new equipment. When older machines break down, repairing them can take longer because parts and pieces for the machines are not usually on hand and have to be ordered. These outdated parts usually cost more and take longer to come in. This means that there is a period of time when the equipment is not operating and can lead to your company turning down jobs or pushing other jobs out. This can equal a loss in revenue for your company.
Maintenance expenses add up quickly
To prevent machine breakdowns and downtime, many companies choose to perform preventative maintenance on their equipment. However, the older a machine gets the more maintenance it is going to need. Over time these expenses are going to rise and it is going to cost more and more in order to keep your equipment running properly. Equipment maintenance costs can end up costing you more than replacing the equipment with equipment financing acquired from one of the heavy equipment financing companies like Equify.
Older machines along with more breakdowns and higher maintenance costs also tend to become less efficient over time. The wear and tear of time can cause the machine to slow down production and not work as well as it did when first purchased. The efficiency of older machines also decreases when compared to the newer models that get released. As technology advances and upgrades are made to the equipment, older machines get left behind.
Lessens employee satisfaction
With the recent labor shortage, companies are doing everything they can to stand out from their competitors and attract more employees. Older machines are not as appealing to potential, or current, employees. They are harder to work with and can be demotivating. Plus, older machines are inherently less safe than their newer counterparts. Every year new machines get additional safety features to prevent costly accidents, employee downtime, and improve employee satisfaction.
Can lead to poor replacements
If your equipment fails and you are forced to replace it instead of choosing to replace it, you will not have enough time to research different models. You might go with the quickest and easiest solution instead of the best solution. Buying new machines is an investment and choosing the wrong one can have a negative impact on your business's cash flow.
Keeping outdated and obsolete equipment can cost your company more money in the long run than buying new equipment, especially with equipment financing. When you are ready to buy new machines, turn to heavy equipment financing companies like us. Our team is here and ready to help.