According to the federal government, food and beverage manufacturing in Australia is currently worth approximately $AUD26 billion annually.
In 2013-14, food and beverage manufacturing in Australia employed close to 223,000 people, representing nearly 24 percent of Australia’s total manufacturing employment.
The keys to enabling food manufacturing business growth are: lower costs, a business friendly environment, a well-equipped labour force, better economic infrastructure, and industry policy that fosters innovation.
While some of these growth strategies fall into the realm of government policy, others, like reducing operating costs can be quickly and easily achieved by the food manufacturers themselves.
One way for food makers to lower production costs is eliminating their capital and equipment expenditure by renting the equipment they require.
While there are a number of factors to consider when choosing and accessing the right equipment, one of the most crucial is deciding whether to rent, or buy.
When making the decision, it’s important to evaluate all of the costs involved, ensuring you are making the right choice for your business.
When equipment is purchased, buyers often overlook the Total Cost of Ownership (TCO), and over time, find themselves with unexpected additional costs.
For food manufacturers, the TCO covers both purchase and running costs, including:
• Maintenance costs for servicing the equipment, which includes labour, calibration, repairs, and replacement parts
• Lost productivity when equipment is being serviced or breaks down
• The cost of tying up capital as opposed to investing it
• Interest on the loan if the purchase is financed this way
• Dating of equipment: When expensive equipment becomes obsolete, the cost of lost potential productivity should be considered, as well as the cost of disposal
The types of equipment used by food manufacturing also varies greatly and can range from automation equipment, process machinery, materials handling machines, and also test and measurement instruments. This means that the capital expenditure budgets for food manufacturers can quickly and easily blow out of proportion.
Renting equipment can generate significant savings by avoiding depreciation, the total cost of the purchase price, service, repair, calibration costs, and the cost of money, regardless of what type of equipment we are talking about.
TechRentals’ test and measurement equipment comes with a managed solution, tailored to the specific requirements of each business. This solution includes a flexible equipment upgrade path, full technical support, and immediate replacement of faulty gear. This ensures equipment is always up-to-date so your business can work at maximum productivity.
Fixed rental payments simplify budget planning, and can be 100 percent tax deductible against business income.* In addition to the financial benefits, TechRentals’ flexible Long Term Rental (LTR) cycles can be adapted to suit any project, and with fast approval, your business can be up and running almost immediately.
By using a reliable national rental provider like TechRentals, the costs of acquiring, running, and maintaining the right test and measurement equipment can be greatly reduced, and the impact on the bottom line can be minimised
If you would like to know more about how renting equipment can benefit your business, download the TechRentals’ whitepaper: Rent or buy? A costly decision, here.