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There are a wide range of reasons why companies purchase new or additional industrial equipment. They may be considering a shift in business focus, a new product line, or increased production. They could be replacing old equipment that’s breaking down, or simply isn’t as efficient as new. They could also be considering increased automation on the production line.

We live in a day and age where “automation” is viewed by many as a naughty word, but the truth is, improving your automation on the production line can be a huge time and money saver, and can result in improved safety and working conditions for your workers as well. Learn how investing in the right production equipment can increase production line automation, accuracy and efficiency, and save you money overall.

Production Line Automation Labor Cost Savings

Let’s address the elephant in the room first: There’s no doubt whatsoever that the right automation equipment will reduce labor costs. The more automation you implement, the fewer labor hours need to be put into the effort of keeping production going. Assume that a machine can do the work of eleven people. That’s an astounding savings in labor costs.

Keeping Product at Home

While saving on labor costs, increased automation can also allow you to keep your production at home instead of outsourcing. Let’s face it: The primary reason to outsource is cheaper production costs, and if you can reduce your production costs on the home front, that helps to eliminate the need to outsource. This, in turn, means you’re hiring local labor for the jobs you still have. At the same time, your production costs are still lower overall.

Improved Quality Control

Quality control is essential to your company expenses. Every error and mistake costs you money. Improved automation with the right production equipment can ensure consistent results on everything you produce, vastly reducing errors, mistakes, and substandard product. This in turn reduces waste, which equates to cost savings.

Increased Productivity

Automated production lines can move faster than people, which means you will produce more product, faster. This increased output and productivity will then translate into increased profit, through many avenues. You may be able to reduce prices and increase sales, and at the same time you may be able to make more profit per unit.

Reduced Overhead

Labor costs aren’t just tied to wages and work hours. There are a lot of hidden overhead costs that tend to be overlooked. These include cost savings on training, insurance, sick time, vacation time, PTO, and other forms of risk management.

Increased Focus on Sales and Marketing

Since an automated production line increases output and productivity, it also allows you to shift focus to sales and marketing. As you build your brand into a household name, your products will move more rapidly, and profits will increase overall.
 
RAAB Sales is your one-stop shop for all aspects of industrial equipment and packaging line automation. If you’d like more information on how we can help your company increase productivity, efficiency and profit, get in touch with us today.