We live in a world where technology is continually advancing. The equipment you use for your business keeps getting new upgrades.
When technology is involved, you’re guaranteed to have it malfunction in some way. When your equipment breaks down, it can be tough to decide whether it needs to be repaired or replaced.
Below, we’ll review what it means to repair or replace your equipment.
Cost to Repair
First, check the equipment’s warranty. If you’re still protected, most of the costs associated with the repair will be covered.
Second, review how much it would cost to repair your broken equipment. Some of the costs associated with repairs include:
- Removing the broken part
- Replacing it
- Installing a new one
- Testing the equipment
Third, consider the ongoing costs associated with future repairs. How often will repairs need to be made?
Fourth, think about whether it will cost you more to repair the equipment than to replace it. As a piece of equipment gets older, the repairs go from minor fixes to more significant problems.
Finally, find out if you’ve finished paying off your current piece of equipment. If you replace your equipment while you’re still paying it off, you’ll be spending a lot more money.
Cost to Replace
Check to see if you’re still under warranty and whether you can get a new replacement.
If you’re no longer under warranty, find out how much it would cost to dispose of the broken equipment. What is the salvage value of it?
Next, consider how much it costs to purchase and then install the new equipment. What’s more, once the new equipment is ready, you need to re-train your employees and go over the safety procedures.
Age
The age of your equipment can help you decide if it needs to be replaced or repaired. Equipment as it ages requires more repairs, leading to higher costs. Older equipment may be cheaper to replace.
Yet, if it’s a newer piece of equipment that has broken down, you may want to opt for repairs.
Safety
Older equipment is more likely to be out of date. Safety can be an issue if you have an older piece of equipment that keeps breaking down. Malfunctions in the equipment can lead to your employee injury.
Regular maintenance can help prevent your equipment from malfunctioning.
Efficiency
The efficiency of your equipment will help determine if it should be updated vs. upgraded. Technological advancements have led to improvements in machinery. This allows them to run more efficiently and cost-effectively.
Older equipment won’t work as efficiently as new equipment and might be outdated. Older equipment can take longer to get a job done compared to newer equipment. What’s more, the new equipment might do a better job of completing the task.
Furthermore, the new equipment may not need as much power or fuel to keep it running.
Time
Find out how much production time is lost when a piece of equipment is inoperable.
Repairing a piece of equipment means you’ll have use of the machinery quicker vs. if you replace it. If it’s a crucial piece of machinery, replacing it may not be an option.
If you choose to replace it, there will be more downtime, leading to the loss of production. However, if the equipment continually needs repairs, replacing it might be your only option.
Do You Need to Repair or Replace Your Machinery and Equipment?
Hopefully, this guide has helped you figure out which is right for you. When it comes to your business, you want as few machine failures as possible. Review our blog to learn how to avoid machine failure in commercial and industrial equipment.
Reach out to us today if you have any questions or are looking to repair or replace your equipment.