How to Determine the Cost of Material Handling Equipment | Conco Jibs

How to Determine the Cost of Material Handling Equipment

Material handling systems have numerous uses, such as transporting, positioning, storing, and maneuvering materials in a workplace, be it on a production floor or a warehouse. Due to functionality providing an alternative to many other expenses incurred, material handling systems can save you money in the long run. For example, an articulating jib crane can replace labor for the task of lifting heavy materials and placing them elsewhere. But material handling equipment can also make you incur high costs at the time of acquiring it. Hence, it is important to determine the overall cost of material handling equipment in order to know the ROI of purchasing the equipment. In this article, we will find out how to determine the cost of material handling equipment.

There are certain factors that you should consider to determine the overall cost of material handling equipment. These are the following:

  1. Purchasing cost: This is the basic cost of acquiring the equipment. You should compare the cost of different vendors and choose the one with appropriate pricing. But that doesn’t mean you go with any vendor with cheap pricing. You should select a trusted company that’s been in the business for a long time.
  2. Shipping and Packaging:Shipping costs comprise the service fees for local, national, and international carriers and their subcontractors for procuring and delivering the goods that you’ve ordered. There are import and export fees involved in case of international shipping, depending on your shipping destination. You may exclude outbound shipping costs as these are passed on to the customer or retailer. Packaging costs are also included in the overall shipping costs in most cases. However, there are extra charges for specialized packaging.
  3. Handling and Storage:Handling costs are the cost of labor required to move the load within the facility. This includes the salaries of manual labor in the storage area, assembly line, and work stations to process or ship materials. Storage costs involve charges for warehouse infrastructure. Moreover, the salaries of warehouse employees should also be taken into account.
  4. Installation and Training Charges:There are installation charges to be paid upfront for setting up a new system or equipment in your facility. Then there is the cost involved for the training of your workers to get acquainted with the use of new machinery or equipment.
  5. Utility or Energy:Whether it is the assembly line or warehouse, you will have to incur a monthly service charge for utilities such as electricity and water. Moreover, there could be the need to buy fuel for trucks and other vehicles. Different equipment requires different utility costs. Be sure to ask your supplier the energy requirements of your new equipment. Go for energy efficient options while purchasing equipment. For example, pneumatic balancers use only a fraction of a CFM per cycle required when compared to a pneumatic hoist.
  6. Maintenance and Repair:The last cost to be considered it the cost of preventive maintenance and the resulting downtime. Regular maintenance and service is important for large equipment.

Conco provides cost-effective material handling equipment for your various requirements. Check out our products here.