According to the US Bureau of Economic Analysis, the average age of a company's machinery and equipment that is currently in operation in the US is close to 20 years. This is double what it used to be in 1980.
In Australia, the case is no different. Equipment maintenance and upgrade has been a topic seldom discussed or considered in day-to-day business decision-making. With the manufacturing sector facing increasing difficulties in the current business environment, Australian companies are putting off equipment upgrades and investing less in equipment and machinery. This has two major implications for your business' productivity and profitability.
Even the best of equipment and machinery will experience a degree of deterioration over time. The productivity of your machinery will decrease with age. This might result in more downtime for your business, with all the costs associated with planned and unplanned maintenance. Increased production costs means lesser profit margins, which can bear serious consequences for the success of your business.
Fortunately, this problem could be easily managed through a tracking software that keeps tabs on your equipment maintenance over time. This would allow each plant with the necessary programs installed to stay up-to-date with maintenance schedules for key machinery and operational assets.
Many companies that tried to cut costs by not setting up the right programs for maintenance tracking have paid the price later on, as they struggle to manually keep track of their machinery's condition.
Secondly, ageing equipment will often fail at the first sign of of increased manufacturing activity when the business takes a turn for the better. An increase in manufacturing volume can put the capacity of your company's older equipment to test and seriously shorten the lifespan of your existing equipment.
The older the equipment, the more obvious its degradation and flaws. This may have a trickle effect on your business, preventing your employees from operating effectively, causing delays in your manufacturing processes and increasing customer dissatisfaction. To keep machinery costs low and profit margins high, it is important that companies ensure their equipment is appropriately maintained and have in place a system to track and monitor maintenance and upkeep processes to ensure that everything runs smoothly.
A proactive future
Moving forward, Australian companies will need to get proactive about their machinery maintenance and upkeep. Keeping ageing equipment in good shape and optimum condition requires your investment in the right software system to monitor machinery maintenance and extend your equipment's lifespan.
inspHire’s rental software can help you reevaluate your maintenance and upkeep programs, and devise an overall maintenance strategy and execution plan for the future. Having an overarching maintenance strategy in place, your business can keep up your productivity, and remain competitive in difficult economic conditions. It also means that any future purchases of machinery can be effectively integrated into the business processes so you truly get value for money for your investment.
Contact us today to learn how inspHire rental software can help your company track asset maintenance!