Tools and Equipment – Money pit or Money maker?

According to Meriam Webster, a tool is something (such as an instrument or apparatus) used in performing an operation in the practice of a vocation or profession. It absolutely goes without saying that to have a successful shop, you need to have the proper tools. Your facility is dependent on the equipment and tools that are available to utilize. That being said, more tools are not always better, and, in some cases, more tools can mean clutter, wasted money and overwhelming your employees. This month we will be looking at tools and equipment and how to determine what is a good investment vs. a bad one. What we talk about today should be viewed as a foundation in which you evaluate your options.

The number of tools and equipment that is available on today’s market is just about overwhelming to most shop owners. There are tools available for every part of your facility, from front office, back office, parts department, and the shop floor. One thing all these tools have in common is their claim to help you save money, time, and energy. The truth, however, is that every facility is different and what works for one, may not work on another. For example, you will not necessarily need to buy a heat Lamp if you have Prep decks with baking capabilities. You would also probably not want to invest into a management system that specializes in MSO capabilities if you are a single facility.

So how do you know what is right for your facility? This depends on a lot of different things such as, staff, shop size, budget, problems, and most importantly, your company vision. To keep it simple, you need to ask yourself three questions:

1. Will this tool help us get to where we want to go as a company?

If the answer is no and the tool does not fit with your vision of where your company is headed, its probably not worth the investment. If the answer is yes, then ask yourself the next question.

2. Can this tool be utilized properly in your facility?

If this answer is no, then you may want to consider in investments that need to be made before you reach this point.  If yes, then ask yourself the next question.

3. Can you afford it?

Although this may seem like a simple question, it is a bit more complex than you may think. Obviously if you do not have the capitol to make the purchase, you would have to explore other finance options, but what makes this complex is that the following question arises, “can you afford not to do it?”.

There is a reason we ask these questions in this order as well. There is no reason to invest in anything that will not help your company execute its vision. From there, it is important to understand that even though your company may benefit from the tool, it may or may not be able to be utilized in your facility. For example, a Symach system would tremendously increase productivity but, even if you could afford the system, does the system fit inside your building? Another less extreme example may be something like a resistance welder. Does the welder you are looking at meet OE certification requirements? Can the technicians use it on most vehicles that come through your building? Once the first two questions are answered and you are considering moving forward with it, you then must look at affordability. You will have to analyze ROI, industry trends, OE certifications, insurance requirements and many more different variables. This decision should be made after careful consideration because by not investing in the proper tools, the price of not investing is sometimes greater than the initial cost of the investment. 

Whether its UV primer, resistance welders, management systems or accounting software, the proper tools will help make your facility operate with greater productivity, quality and ultimately make you money. Just remember that every facility is different and what works for one, may not work on another.