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Key Financial Benefits to Maintaining Your Business Equipment

Posted May 31, 2024 by EasyFinance.com to Finance 0 0

Running a business in today’s national economy is a difficult matter. Despite defying recession fears in the last financial quarter of 2023-24, worries still abound regarding inflation – an issue which could cost businesses billions in material and labor costs. Battening down the hatches is still very much the move, particularly for industrial businesses with high operating costs. 

One avoidable operating cost relates to equipment maintenance and repair, with many seeking opportunities to cut short-term costs for cashflow. But maintenance is a crucial aspect of keeping a business afloat. Why?

Product Costs

The most immediate financial benefit, and the first that you might consider as a business owner, relates to the quality of your business’ output. Poorly-maintained equipment is naturally less likely to perform at its best, whether it is increasingly likely to fail mid-process, or simply likely to start operating out of tolerance. Whichever the specific outcome of poor maintenance, the result is more or less the same; ruined, wasted or sub-par product, which will either be thrown away or returned by an upset customer.

The cost impact of this, then, can come from multiple angles. Material costs are increased through making up for product shortfalls, and customer returns eat into overall profits. Regular maintenance minimizes – if not completely eradicates – these cost impacts, preserving the profitability of the business.

Equipment Costs

Another major financial setback induced by poor equipment maintenance relates, of course, to the equipment itself. Whatever the specifics of your business, whether manufacturing products or processing materials, you will have expensive, niche and potentially bespoke machinery involved throughout the process. 

Failure to maintain this machinery means increased repair costs – to say nothing of the ruinous costs associated with completely replacing failed and unrepairable equipment. Where downtime is not an option, expedited repairs only increase costs further. Preventive maintenance tactics can cost more in the short and medium term, but will invariably eliminate larger and more impactful costs further down the line; the cost of analog voltmeters to monitor voltages across key components will be less than the potential cost incurred by those components’ failure.

Customer Costs

The customer is one of the most important parts of a business’ success – and so should be central to any considerations regarding repair and maintenance. Stoppages and sub-par product can frustrate clients, even if they have long-standing relationships with you as a business, thus leading to lost business and a shaky future. Investing a little in ensuring machinery is well-kept is tantamount to investing in customer satisfaction.

Employee Costs

The other most important part of a business’ success is its employees. Safety and occupational health are legal considerations as well as moral considerations, but there are also significant cost benefits associated with employee safety which are difficult to ignore. Equipment-related injuries result in downtime, lost man-hours and potential civil liability, making the safest approach the most cost-effective approach too.

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