Historically, during downturns, stretch wrap equipment sell well because small and midsize companies that normally require this type of machinery will put the purchase on hold until “things pick-up”.
On the other hand, smart companies will continue to purchase equipment that can offer labor savings and improve efficiency. This is why you need to focus on automation and why the A-ARM is extremely important in today’s environment.
Below is a chart that points out the labor savings provided when comparing the use of a semi-automatic machine with the automatic A-ARM:
Loads/Day Attach/Cut Film Mins/Hr Days/Year Hourly Rate Annual Savings
25 X 2.5 ÷ 60 X 260 X $15 = $4,056.00
50 X 2.5 ÷ 60 X 260 X $15 = $8,112.00
75 X 2.5 ÷ 60 X 260 X $15 = $12,168.00
Below is the difference between hand wrapping and the automatic A-ARM:
Loads/Day Avg wrap time Mins/Hr Days/Year Hourly Rate Annual Savings
25 X 3.5 ÷ 60 X 260 X $15 = $5,655.00
50 X 3.5 ÷ 60 X 260 X $15 = $11,349.00
75 X 3.5 ÷ 60 X 260 X $15 = $17,043.00
Average powered pre-stretch semi-automatic sell price.......... $8,500.00
Full list price of the A-ARM..................................................... $11,950.00
Difference............. $3,450.00
The $4,056 or more in labor savings will pay for the difference between the A-ARM and a good semi-automatic in less than a year!
The $5,655 or more in labor savings compared to hand wrapping will pay for the A-ARM in 2 years or less!
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Posted 05:50 AM January 20, 2009
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