Thursday, October 30, 2008

Why Buying Now Makes More Sense than Ever

Contrary to what you might think - it can make more sense to buy capital equipment right now than to wait till 2009.

I recently returned from the Graph Expo show in Chicago (great town, by the way!) and one key underlying theme hit me. To re-use a 1992 catch-phrase: It's the Economy stupid! I saw this underlying theme demonstrated in several ways.

Let's take a look:

1. Cost Cutting
Attendance at the show appeared lighter than in years past. Why might that be? In a down economy, companies are generally looking to cut costs, not spend more. Since most of the exposition is about equipment and services, it only makes sense that if companies aren't looking to spend in 2008, they wouldn't be attending a sales related show - at least not in force.

2. Efficiencies
Of those who were at the show, it seemed the majority were talking about finding ways to grow their business while cutting costs. In other words, how could they become more productive and more efficient in what they are doing, without breaking the bank. Or what technologies could they use to do what they need cheaper, faster and better.

3. Environmentalness
I don't even know if that's a word (it is now!), but the basics are this: Almost everyone who is anyone at the show was talking about or displaying something "green". Let's face facts: companies in the printing and packaging industries are coming under more scrutiny and regulation for their hazardous waste output. From scrap materials, to toxic inks, cleaning solvents and VOCs, printing and packaging companies have cleanup costs and regulations that are quickly turning into nightmares. How does this relate to the economy? Simple: the less waste and cleanup, the less cost and overhead.

So with the Economy on everyone's mind, how does this message pertain to dry ice blast cleaning in a positive way? I thought you'd never ask.

Let's look at the themes discussed above, in reverse order:

3. Environmentalness
Dry ice blast cleaning, simply stated, removes waste and VOCs from the cleaning process. It's green, it creates no secondary waste, and you don't run foul of regulations on VOCs because, well, you don't use any. Why make a horrendous hazardous mess that you have to clean up when you don't need to? There's a reason why so many companies consider dry ice blasting to be part of their "LEAN" diet.

2. Efficiencies
It's not rocket science (it's printing science): if you can clean faster, better and in place without disassembling your equipment, and eliminate the secondary waste clean up as well, then your efficiency and productivity will skyrocket (maybe that is "rocket" science). Your equipment has more uptime, lasts longer, and you make more product - which means more revenue and profit. That's what efficiencies are all about.

1. Cost Cutting
So, now you're thinking: "OK, everything else is great but it costs money to purchase equipment to get these savings and I want to wait till 2009 to spend money." Well, maybe a few actual numbers will make you realize this isn't necessarily the right move. What if I told you you could realize complete ROI by the end of 2008 if you purchase now in 2008?

Not possible? It can be, thanks to the US Economic Stimulus Package of 2008. With the additional Section 179 expansion and the available 50% Bonus Depreciation, many companies see their overall cost of aquistion reduced by an amazing amount - but only if they aquire equipment by December 31, 2008. In 2009 it will cost you a LOT more. In addition, a capital lease can be had for as little as $299/month, and still qualify for the tax savings advantages.

You may be able to see results like Tyco Electronics who originally thought their ROI would take up to 18 months and instead saw a complete ROI in only 30 days. And of course that means every month after that they're increasing profits more and more. Now that something to believe in.

So... It is all about the Economy. And if you hurry, you can help your bottom line right now. There will be no better time EVER to move to dry ice blast cleaning. Don't wait - January 1, 2009 will be here soon, and then it will be too late.

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