Equipment Utilization Rates

Equipment Utilization RatesIf we’re running a printing business or if we intend to open one, then we should carefully consider our options. While there are many print shops that are doing well and earning profits, the fact is that there are a lot of companies that offer specialized printing services which struggle to get by.

And they’re not doing all this bad because they don’t have clients. There issue of the market being saturated is not at play here. There are many companies that deal with printing equipment, and that offer printing services. The costs for equipment, maintenance, paper, and consumables are fall pretty much in the same range for everyone.

Therefore, when it comes to success and bankruptcy the responsibility falls entirely on how well we are able to manage our resources. Any well managed company needs to offer competitive prices in order to maintaining a reasonable number of loyal customers.

What statistics show is that the cost of goods, payroll and overhead make up 90% of all the costs that a company using small printing equipment has. When it comes to an overall, the factory cost for all printers is 78%. What a company needs to do in order to make sure that their printing costs are low is make sure that they’re using the printing equipment that they have at full capacity.

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If we want to purchase printing equipment, then we need to make sure that the equipment we buy will run for more time than it’s idle. It’s actually harder to realize what the real customer demand will be when we’re just starting out. A company that has experience on its side, having been on the market, will be able to regulate the utilization rate of the printing equipment it uses.

The utilization rate is actually the most important factor when it comes to properly managing our company and seeing that it stays profitable. The utilization rate is given by the difference between a printing machine’s capacity and the production demand.

The key is to find a balance between these two so that the manufacturing costs will be covered. However, we shouldn’t get ourselves fooled, no matter what we use, be it offset printing machines or their digital counterparts we are highly unlikely to reach a 100% utilization rate.

Most of the leading companies today manage to achieve as high as a 75% utilization rate. We shouldn’t however confuse utilization rate with availability. Whether a printing machine is ready to be used or not is irrelevant to its utilization rate. The actual time in which the machine is actively used counts towards a machine’s utilization rate.

There is a wide range of printing machines that we can choose from, and the decision between using offset machines or digital printers should be made with careful consideration on the fact that offset machines are cost-effective only when more copies are required. By visiting www.allforprintmarket.com, we can browse through a big selection of printing equipment that is for sale.


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