Finances, Case Study

What is the True Cost of Owning a CNC Machine?

September 20, 2012

Cost of OwnershipLike any other major purchase, most of us tend to focus on the initial pricetag of manufacturing equipment, and it’s sometimes difficult to rationalize the cost difference between two similar machines. In the case of CNC machine tools, Machining Center “A” may not look much different from Machine Center “B,” and the specs may even be quite close. So, when machine “B” has a pricetag that’s one-third less than “A,” it’s tempting to choose the less expensive machine.

As one long-time Gosiger customer found out, there are other factors that affect the overall performance and cost of owning a CNC machine. Here is what he shared with us:

In an effort to save money on his initial investment in new CNC machine tools, he found a brand that had a price tag 35% less than the higher quality machines he previously purchased from Gosiger. After taking delivery of the new, lower cost CNC machines, he kept track of his expenses for extraordinary repairs, downtime and training. These alone ate up the 35% savings on the initial cost of the CNC machine tools. What was worse was that he lost additional money on operator intervention costs, lost opportunities, scrap, rework and a shorter machine lifespan. Having learned a difficult lesson, this customer replaced his “cheaper” machines with higher quality CNC machine tools backed by Gosiger technical service, training and customer support.

So, if you’re looking for the best value in a CNC machine, talk to the experts here at Gosiger. We’ll help you determine how to realize the best return on your investment based on the true cost of ownership.

 Real Cost 6 ROI Capital Budgeting 6