Justifying a capital equipment purchase by calculating its return on investment (ROI) can be challenging for many shops. Manufacturers oftentimes focus entirely on initial equipment price when making these calculations, neglecting proper evaluation of the total life cycle cost or anticipated performance of the equipment. In reality, the acquisition, operating, maintenance and decommission costs can all affect a machine’s true ROI calculation.

This white paper discusses how to carefully weigh ROI in order to make a better informed decision on which equipment to purchase. Learn about the hidden costs of ownership that impact ROI over the life span of capital equipment. Find out which factors of machine performance impact ROI, how automation improves ROI and how leasing versus buying can affect ROI.

The paper also provides clear examples of effective ROI calculations, and it explains how high-performance machine tools can ultimately be a better solution by delivering long-term reliability, accuracy and performance.

This white paper aims to help answer the following questions:

  • What is the most comprehensive way to determine the return on investment of a CNC machining center?
  • How does the performance of a machine tool impact return on investment?
  • What factors should I consider when investing in a CNC machining center?
  • How can I justify the purchase of a new machine tool to company ownership and accounting?
  • What is the long-term financial impact of purchasing a new manufacturing system?
  • Is it better to lease or buy a machine tool?
  • How do I determine the return on investment of automation?
  • What impact will automation have on the bottom line of my manufacturing business?
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