Not everything can be outsourced to second-world countries. For example, products that are time-sensitive, high-tech, low-volume, complex, and not viable to freight due to shape, weight, or size.
However, despite this, too much work is being outsourced from New Zealand to second-world countries, leading to fewer jobs for kiwi workshops, and greater competition.
Why is this the case?
The big factor is cost. It’s cheaper to manufacture overseas due to readily-available materials, larger workforces, and low wages. But how can New Zealand compete with this low-cost labour workforce?
There are a number of options available that allow unmanned operation, starting from simple robot systems, loader systems fitted to lathes, machining centres, and moulding machines. The trick is in making them flexible enough that they can be changed from one job to the next without taking too long.
There is an advantage to doing this, namely the saving of labour costs and lights-out running. There seem to be more companies running overnight or during the weekend, unmanned. There is a cost to this, but even the benefit of having a machine run over the smoko and lunch breaks will gain one hour a day. Onehour gained per day is approximately 230 hours gained per year. If each hour is worth $100, then that’s a saving of $23,000.
Installing automated systems will incur a cost, but the benefits will outweigh the costs in terms of payback.
To run unmanned it is necessary to have a stable process and a reliable machine. That’s where iCNC and ISCAR PLUS come into it.
Talk to us today about automating your systems, and to see what the payout period will be for you.