ROI is a main concern for  investing in automation.
12. 六月 2024

Surmounting Funding Hurdles for Automation

In today's business world, automation is increasingly important for boosting efficiency and staying competitive. However, many companies face the challenge of securing the necessary funding for automation projects. This news article highlights key points from our webinar "Overcoming Funding Hurdles for Automation" and provides valuable insights on how companies can overcome these hurdles.

Is Automation in Intralogistics Necessary?

Companies are increasingly recognizing the necessity of automation due to several key factors:

  • Labor Shortages: Many industries face labor shortages, high turnover rates, and significant costs for hiring and training new employees. Automation can help address these challenges.
  • Increasing Service Demands: Customers expect faster deliveries and higher service levels, driven by companies like Amazon. Automation can improve operational consistency and meet these demands.
  • Rising Costs: Companies are confronted with rising costs for labor, energy, and raw materials. Efficiency gains through automation can help reduce these costs.

Learn more!

TGW Webinar

Overcoming Funding Hurdles for Automation

The webinar addresses the challenges companies face when financing automation projects. Gain valuable insights and practical tips from experts Lou Leonardis (Chief Financial Officer NA) and Nathan Wolf (Sales Director NA).

Watch the Recording!

TGW webinar: Surmounting funding hurdles for automation

Funding Challenges

One of the biggest hurdles in implementing automation projects is access to capital. Companies need to carefully consider which projects to finance as available funds are often limited. Additional challenges include higher interest rates and uncertainty about future order volumes, especially in e-commerce environments.

Solutions for Financing Automation Projects

To overcome these hurdles, several approaches can be considered:

  • Understand the Difference Between Purchasing and Leasing: Purchasing an automation solution ties up capital that cannot be used for other purposes. Leasing can be an attractive alternative, allowing companies to utilize automation without immediate high investments.
  • Calculate Return on Investment (ROI): A detailed ROI analysis is crucial to assess the financial benefits of an automation project. This includes not only labor cost savings but also reduced training costs, lower equipment maintenance costs, and higher operational efficiency.
  • Utilize Financing Partners: Specialized financing providers can assist companies in funding automation projects. These partners offer various models, from financing individual automation solutions to comprehensive leasing agreements for buildings and automation systems.

Demystifying Leasing

A common misconception is fixed warehouse automation equipment cannot be leased. The truth is, TGW Logistics has relationships with business partners that offer equipment leases. Leasing frees up capital for other investments and significantly improves the ROI related to the business case for warehouse automation.  

Conclusion and Outlook

Automation is a powerful tool for increasing operational efficiency and staying competitive. However, financing such projects can be challenging. By understanding the various financing options, conducting thorough ROI analysis, and utilizing financing partners, companies can successfully overcome these hurdles. With the right approach and planning, companies can overcome financial barriers and fully leverage the benefits of automation.

For more information or questions on this topic, our experts Lou Leonardis and Nathan Wolf are available to assist.

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