5 Reasons why companies are
investing in automation NOW
5 Reasons why companies are investing in automation NOW
With all of what’s currently going on in the world… war, inflation, prices sky-rocketing, labor shortages, strains on the supply chain, you might feel that companies spending money on large purchases would be a fools errand. I’m sure you’re not alone. Others probably have felt that same way you do. But smart companies have found that there is no better time to invest in automation than RIGHT NOW. Here are 5 reasons why there’s no better time than today…
Buying with current dollars by using inflation to your advantage
Let’s use an example that nearly everyone is familiar with… gas. Prices are going through the roof. In the past 26 months, the average price of a gallon of gas has risen a mind-boggling 273%! Now bringing it back to the topic at hand… if you could buy all of your gas that you’ve used in the past 26 months in April 2020, how much could you have saved? Same can be said for automating your processes. Buying now with today’s dollars, will save you substantially as inflation continues. Plus, you have the added bonus of higher production rates, increased efficiency, and higher profit margins.
Avoiding competition in the labor market by automating some positions
Every company seems to have a difficult time finding workers in today’s tight labor market. “Can’t get help, can’t keep help” is woven into nearly every hiring conversation. Focusing on hiring the best qualified people should be your goal and implementing automation for low-skill/no-skill jobs will let you do exactly that. Provide more robust purpose-driven satisfying jobs to your best people and let automation do the menial stuff.
Implement automation now also prepares for future growth.
“The future belongs to those who prepare for it today”. Noah didn’t wait for it to rain to start building the arc. Planning and investing now will yield huge dividends in the future. Position your company NOW to take advantage of the inevitable rebound in the near future.
Optimize human potential by keeping highly skilled workers doing highly skilled tasks.
Employees that don’t feel valued or upwardly advancing will soon become bored and leave for a better company
Automation allows you to position your personnel into higher-priority positions in your company. It is a win for our team members, plant safety, and efficiency
Taking advantage of tax breaks on capital equipment
One of the best kept secrets to CAPEX spending is the ability to depreciate the value over a period of time, saving tremendous tax dollars.
The IRS rule is that you claim depreciation on leased equipment if your contract is a lease-to-own arrangement. If it’s a not-to-own lease, you deduct the payments as a regular business expense, even if the lease meets GAAP’s five-fold test for a finance lease. https://bizfluent.com/how-12075758-calculate-depreciation-leased-equipment.html
Wait, you might be thinking: shouldn’t I reduce CAPEX spending during a downturn?
If you were to buy it with cash on hand, then maybe. But if you can finance or defer payments into the future using today’s dollars (see first and fifth points) then it makes complete sense.
Get the automation system now, borrowing today’s dollars, reap the benefits, efficiencies, increased productivity, higher profits… and pay for it later with tomorrow’s dollars.
Find out how you can leverage automation purchases now by contacting your team at Delta Technology today. Let us be your guide on your journey to automation.