Equipment Justification: Do A 360˚ Review

4| Spoilage and unnecessary rework: Reliability of equipment and personnel can be critical. Spoilage can cost you far more than rework time and materials. In a worst-case scenario, you can lose a customer, or even a market of customers. That can take years to regain in today’s market conditions.

5| Utilities: Natural gas, electricity and water are increasing in costs in almost all markets. Additionally, many newer models of equipment are designed to be more efficient with fuels and consumables. Don’t overlook what might be saved. What you are ultimately doing in this justification process is telling a story through changes in cash flow—and utilities seem to be a growing part of that story in today’s world.