Pleading the Case for New Equipment

You know it. But how do you convince upper management that investing in new equipment will save money down the line?

By Kristen E. Monte

You've heard the argument: Your equipment still works; why replace it?

As most in-plant managers know, their shops are often at the bottom of the organization's budget allocation list. Getting upper management to shell out money for upgrades is a difficult task—but not impossible. After all, the pages of IPG are filled with equipment installation articles.

The secret, according to managers who have succeeded, is determining the profitability of that new equipment. If you can prove to upper management that, by upgrading your gear, operating costs will go down, then you might have a chance at a green light.

So what is a manager to do? A simple plan of presenting the key information, such as, how much money the equipment will save and what new advances it will provide for the company, might loosen the purse strings for your in-plant's gain.

Printing and Mailing Services at Florida State University, in Tallahassee, did just that. According to Director Jennifer Bowers, the key is to know what will be required of you by the purchasing department before you even think about the request.

"I put together a summary of why I need to make the purchase," says Bowers. "I ask what the equipment does, what the pay off will be, what the benefit to the university is and what would happen if I didn't purchase it. I also look at long term costs of service and supplies and what training and installation will also cost."

This type of extensive research is what led to the 60-employee in-plant's installation of a 108-pocket, multi-tiered B