OpX: Bringing Total Cost Transparency to Machinery Purchases
Sometimes, in the manufacturing space, things get a little bit “samey” ─ that is to say, nothing changes. Yes, we have technological advancements and subsequent enhancements that transform business operations on a ─ seemingly ─ daily basis, but it doesn’t always seem revolutionary to the people who don’t work within those specific spheres. Something that will pique the interest of CPO’s, procurement managers, and the financiers within manufacturing was released yesterday: the revamped .
The document will provide manufacturers with the bigger picture or a wider perspective, if you like, of the complete cost of a machine purchase. It’s free, and it has got a new, sleek, streamlined, easy-to-navigate format that features case study examples of how both OEMs and CPGs can utilise the document. The tool will also feature a customisable Excel workbook which manufacturers can use to keep a record of all salient cost information during the purchasing process.
“When purchasing equipment, acquisition, and operating costs–from design and application through operation and maintenance–must be considered, not just the price,” says Bryan Griffen, director, industry services, PMMI. “Our updated tool makes it easier than ever for companies to make informed business decisions in selecting the best solution using the total cost of the machine.”
The OpX Leadership Network was founded back in 2011 by The Association for Packaging and Processing Technologies (PMMI) with the ambition of ensuring that CPG companies and OEMs are well-connected and well-prepared to solve the common operational challenges and problems faced by manufacturers every day. The Network also aspires to leverage technological capabilities to make smarter decisions and achieve operational excellence in manufacturing hubs.
“Users have downloaded the original Total Cost of Ownership document over 5,000 times”, and it’s expected that the revamped edition will be just as, if not more popular, as we enter an era of increased digital transformation in the manufacturing sector.
IMF: Variants Can Still Hurt Manufacturing Recovery
After a year of on-and-off manufacturing in the US, UK, and the eurozone, demand for goods surged early last week. Factories set growth records in April and May, suppliers started to recover, and US crude hit its highest price point since pre-COVID. As vaccination efforts immunise much of the US and UK populations, manufacturers are now able to fully ramp up their supply chains. In fact, GDP growth could approach double-digits by 2022.
Now, the ISM productivity measure has surpassed the 50-point mark that separates industry expansion from contraction. Since U.S. president Biden passed his US$1.9tn stimulus package and the UK purchasing managers index (PMI) increased to 65.6, both sides of the Atlantic are facing a much-welcomed manufacturing recovery.
Lingering Concerns Over COVID
Even as Spain, France, Italy, and Germany race to catch up, and mining companies pushed the FTSE 100 index of list shares to a monthly high of 7,129, some say that UK and US markets still suffer from a lack of confidence in raw material supplies. Yes, the Dow Jones has made up its 19,173-point crash of March 2020, and MSCI’s global stock index is at an all-time high.
Yet manufacturers around the world realise that these wins will be short-lived until pandemic supply chain bottlenecks are solved. If we keep the status quo, consumers will pay the price. In April, inflation in Germany reached 2.4%, and across the EU’s 19 member countries, overall prices have increased at an unusual pace. Some ask: Is this true recovery?
IMF: Current Boom Could Falter
Even as Elon Musk tweeted about chip shortages forcing Tesla to raise its prices, UK mining demand skyrocketed; housing markets lifted; and the pound sterling gained value. The International Monetary Fund (IMF), however, cautioned that manufacturing recovery won’t last long if COVID mutates into forms our vaccinations can’t touch. Kristalina Georgieva, Washington’s IMF director, noted that fewer than 1% of African citizens have been vaccinated: “Worldwide access to vaccines offers the best hope for stopping the coronavirus pandemic, saving lives, and securing a broad-based economic recovery”.
Across the globe, manufacturing companies are keeping a watchful eye on new developments in the spread of COVID. Though US FDA officials don’t think we’ll have to “start at square one” with new vaccines, the March 2021 World Economic Outlook states that “high uncertainty” surrounds the projected 6% global growth. Continued manufacturing success will in large part depend on “the path of the pandemic, the effectiveness of policy support, and the evolution of financial conditions”.
Mathias Cormann, secretary-general of the Organisation for Economic Co-Operation and Development (OECD) concurred—without global immunisation, the estimated economic boom expected by 2025 could go kaput. “We need to...pursue an all-out effort to reach the entire world population”, Australia’s finance minister added. US$50bn to end COVID across the world, they imply, is a small investment to restart our economies.