June 30 is coming - Is it time to invest in new technology?

Nail down the reasons to invest in new or upgraded equipment

Don’t invest for the sake of investing. Be very clear on whether your business will benefit from new or updated equipment, and exactly what the return on investment will be.

Start by answering these questions:

Which processes could be automated to run more efficiently and with better quality results?

For example, if you are currently labelling cans by hand, consider the time and cost savings if you label them using a machine. Even with the initial outlay, you can benefit from long-term savings on labour, not to mention preventing reworks due to human error. The simple fact is process automation enables organisations to do more with less in less time.

Are your customers demanding quality assurance that means you need to invest in inspection equipment?

Australia’s major supermarkets – Coles, Woolworths and Aldi – have been pushing suppliers to implement better, more accurate inspection systems for a while now.

Do you plan to introduce new products or variants to your range in the next year?

Make sure the processing and packaging line is ready for your new products. This might mean investing in new equipment such as labelling, coding or inspection machines.

How efficient and reliable is your current equipment?

Is it holding back your production capacity and compromising product quality? If equipment breakdowns mean you are dealing with downtimes, unplanned stoppages, quality issues, and even recalls, you could be suffering the cost of unreliable equipment.

Downtimes in your production and packaging line are not only time-sucking events, they’re also expensive. They can spoil a whole batch of products and risk customer relationships.

But before you commit to updating your equipment, there is another factor to consider:

Do you have a robust equipment maintenance strategy?

Equipment downtime and inefficiency is usually avoidable through the right maintenance strategy. Regular servicing and monitoring of equipment health can extend the life of the machine, while stopping goods leaving the facility that don’t meet your customers’ quality demands. So, make sure your planned maintenance program is still effective in increasing equipment reliability.

Here’s how to kick-start your equipment health in 2022.

You may be able to get a helping hand with your investment. There’s a wide range of grants out there, so do some research to see if you might be eligible. For example, a further $53.9 million has been allocated to the Manufacturing Modernisation Fund to co-fund capital investments for small and medium manufacturers.

There’s also a helpful tax break for business called Temporary Full Expensing, which means that eligible businesses can score an immediate tax deduction for the cost of a capital asset in the year it is first used or installed ready for use.

The tax break works by offering an immediate deduction for all capital assets against your profits for the year. Temporary full expensing runs through until 30 June 2023 and provided your business has a turnover of less than $5 billion, you are included.

Always check with your tax accountant before making any tax-related decisions.

Remember, support is critical to uptime.

That’s why it pays to choose a local Australian equipment provider who can keep your line running. Matthews provides a 24x7 Care program that ensures you have the support you need when you need it most, on-site or remotely. And because we know that not every business needs the same level of support, you can choose from the right level of care for your business. Talk to our team about your current and future needs, and we can help you weigh up the pros and cons of new equipment, and help you identify the best technology for your business.