Having the machinery you need to get the job done is a key component of your business—but when it comes time to purchase new plastics processing equipment, it can be a huge up-front investment. That’s why it’s crucial to identify and weigh the pros and cons of every potential purchase, so you can make a well-informed decision that’s aligned with your current needs, future plans, and budget.
While there are many advantages of new plastics machinery, there are also perks of used machinery that incentivize businesses to take that route instead. Which is right for yours? We’re here to help you figure it out with three major pros and cons of buying new plastics machinery.
Pros of Buying New Plastics Machinery
New Plastics Machinery Pro #1: Newest Technology and Capabilities
The newest plastics machinery on the market will have the most up-to-date technology and functionality, which is one of the prime reasons for buying new plastics processing equipment. When your employees have access to the latest tools that enable them to work smarter and faster, it increases company-wide efficiency.
In today’s heavily saturated business market, being ahead of the technological curve can help you form a competitive advantage. Whether it’s innovative new capabilities that allow you to approach a problem or get creative in an entirely new way, or simply a software update that helps your employees complete everyday tasks faster, new plastics machinery equipped with the latest technology can empower you to increase productivity. Continuously working to improve and streamline your operational processes is key for business growth.
New Plastics Machinery Pro #2: Compliance with Safety and Environmental Standards
When your business is utilizing equipment and machinery, there’s a laundry list of workplace safety standards and OSHA requirements to keep in mind. Many companies prefer purchasing new plastics processing equipment over used equipment because it has more updated safety features. This investment creates a safer working environment for your employees, giving you peace of mind and minimizing the risk of workplace injuries or fines for non-compliance.
Additionally, new plastics processing equipment is more energy efficient. Making strides to be more environmentally friendly can positively affect your bottom line, both by reducing the cost of your utility bills and increasing sales — in fact, consumers continue to seek out and buy from companies that are environmentally conscious.
New Plastics Machinery Pro #3: Warranty Options
Almost all new plastics processing equipment will come with some type of warranty, and many manufacturers offer a wide variety of warranty options. Flexible warranty options can prevent you from wasteful spending, such as signing on for a five-year warranty when you plan on only using the machine for six months. It can also minimize your risk of paying out-of-pocket for costly machine maintenance; for example, if you know you’re going to be using a machine at max capacity consistently, you’ll probably want some additional coverage.
It’s also worth noting that extended warranties, which add additional years to the coverage that manufacturers offer, are often transferable. If you’re factoring in resale value when deciding whether or not to purchase new plastics processing equipment, keep in mind that if you sell it before the extended warranty is up, it will transfer to the new owner. This will make your machinery more attractive to potential buyers when you’re ready to sell it.
Cons of Buying New Plastics Machinery
New Plastics Machinery Con #1: A Higher Price Tag
While this one may seem obvious, it’s important to remember that buying new plastics processing equipment can require a hefty up-front investment. This could take dollars away from other business ventures, such as maintenance on existing machinery, software or safety upgrades, and other purchases. Used machinery is often available at bargain prices that can be negotiated even further.
While you may be sacrificing having the most up-to-date capabilities and features, used machinery will pay for itself much quicker than new plastics machinery. This gives your business a faster ROI and larger profit margins on your purchase.
New Plastics Machinery Con #2: Factoring in Depreciation
One of the major disadvantages of buying new plastics processing equipment is having to factor in depreciation. Purchasing new plastics machinery is a lot like driving a new car off the lot — as soon as you do, it’s worth significantly less. In some cases, the total value of a new machine can depreciate 20-40% in the first 12 months alone.
On the other hand, used machinery tends to hold its value much better, especially if you’re prioritizing regular maintenance. If you’re making an equipment purchase with future resale value in mind, remember that new plastics machinery will depreciate much quicker.
New Plastics Machinery Con #3: Lead Time
Lead time is often overlooked when businesses are purchasing equipment. It can be a lengthy process for new plastics machinery to be produced and delivered — it may be custom built-to-order, on backorder, or simply so large that it has to be delivered by truck or boat, which means you won’t see Amazon Prime-speed delivery
Therefore, it’s important to ask yourself: “How long can I afford to wait for a piece of new plastics machinery?” If you have more immediate needs, many used machinery dealers have equipment that is in stock in their warehouse and ready to move as soon as it is purchased.
There are numerous reasons for buying new plastics processing equipment: access to the latest technology and capabilities, safety compliance, and flexible warranty options are just a few. However, there are also disadvantages of buying new plastics processing equipment that should be considered when you’re making a purchase decision. Now that you’ve weighed some of the major pros and cons, we hope you’re better equipped to identify which route is best for your business and its unique needs!
Make Your Next Equipment Purchase Decision with Confidence
At PlastiWin Capital Equipment, LLC, we offer more than 35 years of combined experience, with outstanding service and competitive pricing to meet any budget constraints. As one of North America’s top plastic, chemical, and rubber processing equipment suppliers, we provide both new plastics machinery as well as quality used processing equipment. If you’re looking to sell your used machinery, we also buy, sell, and transport used plastic process equipment globally.
If you’re ready to start sourcing new or used machinery or are looking for more guidance identifying your equipment needs, reach out to our team today!