Can You Afford Automation? Here is the math
Why It Makes Sense for Businesses
“It’s all about being more competitive”
Here is how I justify the robot...My employees typically run in the 80-90% for earned hours, which is how we base everything (an earned hour is a quoted hour of work the customer is paying for, it doesn’t include breaks, vacation, training, etc...).
When we have the employee running another machine and also running the HALTER, their earned hours are running well above the 160% range.
We had previously determined an employee costs us around $40 per hour with benefits, etc...
Most machines cost are in the $8-$15 per hour range, so we tend to have excess equipment vs. labor. A $200,000 machine, running 4000 hours a year for 5 years = $10 per hour.
For example then, using the above numbers:
A $75 rate for 1 hour an employee typically produced before the HALTER: 85% x $75 = $63.75/Hour - $40/hr For Employee - $10/hr For Machine = $13.75 Per Hour Profit/Gross x 2000 Hours/Year = $27,500
Now factoring in the HALTER LoadAssistant:
A $75 rate for 1 hour an employee now produces: 160% x $75 = $120/Hour - $40/hr For Employee - $20/hr (For 2 Machines) = $60 Per Hour Profit/Gross x 2000 Hours/Year = $120,000
What does that mean?
Our per employee difference is now $120,000 - $27,500 which is a difference of $92,500 per year.
1 Employee (1 Shift)
$115,000 for Cost of HALTER/$92,500 = 1.24 Years to Pay Back
2 Employees (2 Shifts)
$115,000 for Cost of HALTER/$185,000 = .622 Years to Pay Back
3 Employee (3 Shifts)
$115,000 for Cost of HALTER/$277,500 = .414 Years to Pay Back
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