For many metal fabrication shops, it can be easy to get comfortable with your equipment and technology. With incredible industry innovations in both technology and machine tools, if your shop floor and operating processes haven’t changed in a while, it might be time to think about an upgrade.

Why upgrade

The right upgrade can significantly improve productivity, efficiency, safety and profitability for your business.

For example, we recently had a customer considering upgrading two older 4kW CO2 laser machines. Upon deeper review, we found that each machine cost the business about $50,000 per year in power and upkeep. We were able to replace both machines with one 12kW Fiber laser. While there are no maintenance costs for the first two years while under guarantee, the power costs were only about 25% of current consumption. Plus, this new machine is able to cut parts nearly three times faster. Not only were they able to immediately save $75,000 per year in operating costs, the increased productivity further reduced cost per part. Even though installing a new fiber laser is an investment, the strong ROI from both the operating savings and productivity made this a great business decision.

How do you know when it’s time for a change?

Factors to consider include aging machinery, ability to keep up with growing demand, operational and energy efficiency, rising costs of production or opportunities to enter new markets.

Once you’ve decided it’s time to upgrade, it’s not just a flip of a switch to make that change. The key to success is thoughtful implementation. At Paramount Machinery, we pride ourselves on helping Canadian shops make smart investments in high-performing equipment. We recommend 7 steps to a seamless transition:

1. Audit Your Current Assets

You need to know where you are to find out where you need to go. Start by a full audit of your current shop. Evaluate and consider:

• The condition, performance, and operating costs of machinery.
• Maintenance frequency, downtime and parts availability.
• The types and volumes of work you do, or have opportunities for.
• Where are your bottlenecks or inefficiencies?
• Can your existing systems be upgraded or integrated? Or do you need to fully replace equipment?

Tip: Use OEE (Overall Equipment Effectiveness) metrics to benchmark your current equipment. Determine the ratio between the quality parts your machines could theoretically produce and what they actually do. If the gap is too high, that’s where you may need an upgrade.

Request us to assess which machines are underperforming or obsolete.

2. Get Internal Perspectives

Next, consult your team. Your operators, maintenance staff and supervisors are in the thick of your operations. They can help you identify pain points in production, safety concerns or opportunities. This feedback is incredibly valuable to help you determine where to invest. Plus, when you involve your team early it can help get buy-in and engagement during implementation.

3. Buy or Lease: Choose the Right Investment Path

Once you land on an equipment upgrade you need to choose your investment path. Buying isn’t your only option, many shops opt for lease financing - there can be advantages to both.

Buying can come with long-term savings, asset ownership and possible tax benefits. Plus, there may be government business funding options available.

Leasing, on the other hand, allows lower upfront costs to manage cash flow, flexibility to upgrade again, predictable monthly payments, and more. Learn more about the benefits to lease financing for fabrication machinery here.

Not sure if buying or leasing new machinery is right for you? We are happy to go over the options tailored to manufacturers, and connect you with financial experts in the industry.

4. Plan the Installation

Now that you’ve done the pre-work and research, it’s time for planning the  installation. In collaboration with the equipment provider, create a clear timeline and understand the budget. Plan for delivery, rigging, floor layout changes and make sure you understand potential downtime. Find out what external support you need - like electricians or installers - and coordinate in advance. You’ll want to determine how the new equipment will work with existing systems in terms of space, software, power supply and more.

Consider production continuity during the switch over. Understand what needs to stop and what can continue as usual, how long downtime will be, and any other consequences. A good plan will help you avoid surprises.

5. Training and Support: Set Your Team Up for Success

A good implementation never stops at installation. You’ll want to set up your team for success and be able to take advantage of the new productivity and efficiency benefits of your upgrade. Schedule comprehensive training for your operators and staff and plan for on-going support with maintenance schedules, troubleshooting processes and software updates. Lean on your suppliers for this! Choose vendors who offer onboarding and technical assistance.

At Paramount Machinery, we partner with clients throughout the onboarding process, and can offer support before, during and after installation to smooth the transition.

6. Monitor Results and ROI

In the beginning of the implementation process, you identified your needs. You should also set benchmarks for success: what level of output, quality, efficiency or waste reduction are you going for? These KPIs will help you track improvement and understand the return on your investment over time. And that doesn’t just mean financially - understand how this upgrade has less tangible impacts like safety, reliability, and employee morale. 

Here’s where you’ll want to check in with your team post-installation (and on an ongoing basis). Collect feedback from operators to see if there are opportunities to further fine-tune processes.

7. Plan for the Future

A shop upgrade isn’t ever one-and-done. The industry is always evolving and your business needs change over time. Think of this upgrade as part of a long-term strategy for modernization and optimization. Consider future proofing with automation and ongoing evaluation. It’s important to partner with a supplier who stays on the cutting edge of the metal fabrication industry advancements, and evolves with you.

Remember: You don’t have to upgrade everything at once or rush into it! A smart, phased approach to equipment upgrades can set you up for long-term success. On top of that, upgrading your shop isn’t just about shiny new equipment - a smooth, thoughtful transition is key to boost productivity, morale and ROI for your fabrication business.

Contact us today for personalized guidance on your next equipment upgrade.