For the last few weeks I have been discussing how the traditional cutbacks might actually hurt your business during this downturn. The next few weeks will cover the things you can do.
You can begin with a review of your Capital Equipment Plan. If your business does not have one, it should. This is the map you create of what major equipment you plan to purchase, and when you plan to purchase it. You need this plan to help balance growth and efficiency with your current work, your cash flow and debt load. It can be, and needs to be, a VERY flexible document. Obviously, as the economy has slowed fairly quickly in many regions, big purchases may need to be rescheduled. In other cases, a new job may justify the addition of equipment that was not even part of your plan. Think of your Capital Plan as a roadmap. It can show you the routes, but detours are often nessesary.
Now is a good time to review your Plan (or begin one) and make some choices. Go over the whole operation. There may be several areas when you can put off buying new equipment and still improve your efficiency.
Upgrading Existing Equipment: Many larger units are modular in nature, and upgrades are a possibility. An edgebander may be able to take on a new station. A drillbank or C-drive may be added to your existing CNC.
Tooling Improvements: This is an area that is most overlooked. Tooling manufacturers are constantly innovating, and improving their offerings. Often, new tooling added to your existing equipment can solve existing problems or even add new capabilities. For example, insert tooling can now be used on your CNC that allows for changing profile cuts without needing to change tools or even reset tool lengths. This can delay the need for a bigger tool changer and make changing jobs more efficient.
Fixturing: Creative fixturing can widely expand your capabilities at very minimal cost. Dedicated router tables can be shop built to perform common light duty tasks at far less than the price of a new shaper, and when on wheels can be stored out of the way when not in use. The purchase of a new angled head shaper can be put off until better times by building a slant table that adapts your existing shaper. I have built jigs that allow for circular moldings on a normal shaper, and on Woodmaster Molders.
Lastly, outsourcing can help put off new equipment purchases. You can typically buy out many of the items you need, and these times are an excellent time to begin reciprocal relationships with other shops that can increase the capabilities and profits of both shops.
So take the time to review your Capital Equipment Plan, and see if there are areas you can modify the plan to reflect your current state. The results can be surprising.
