Used Robot ROI
The value of a used robot can have tangible and intangible benefits. Tangible benefits are those that can be easily measured or calculated and mainly refer to the cost savings a used robot will provide. While intangible benefits are those that cannot easily be measured but are still important to consider. Both types of benefits are helpful for justifying the purchase of a used robotic system.
Return on investment (ROI) is the main metric used by companies in order to determine if a used robot will be valuable to their operation. There are many different variations of ROI calculations. Some are used to determine the percentage of your investment in an articulated robot you will gain back over a period of time. While others simply calculate the amount of time it will take to recapture 100% of the investment in the FANUC LR Mate 200id/7L or another used industrial robot, this is also known as the payback period. ROI calculations mainly capture the tangible benefits of a robotic system. While it is important to determine if your robot will produce cost savings and a positive cash flow, it is also important to factor in other long-term indirect benefits. These may include greater manufacturing flexibility, space savings, better ergonomics, and improved product quality.
Calculating the ROI for a Used RobotAs mentioned above, there are many different variations for calculating the ROI of a used robot. In general, most ROI calculations involve determining the total cost savings of a used robot. This is done by factoring in the following:
- • Robot Usage - This refers to how often your robot will operate. For instance, let’s say you purchased a used ABB IRB 2600-20/1.65 to operate for three shifts a day, seven days a week. The number of shifts is the robot usage.
- • Current Labor Costs - This is a calculation of the total labor costs including benefits and training of the workers who will be replaced by the used robot.
- • Robot Cost - This is the total cost of your robotic system including the six axis robot, EOAT, safety equipment, sensors, peripheral equipment, maintenance, taxes, shipping, and installation costs.
- • Robot Labor - This references the estimated costs associated with any operators or technicians who will be needed to run the robot.
Impact Used Robots Have on ROIWhen justifying whether or not to invest in robotic automation the most important factor should be if the robot will earn back your investment. However, purchasing a used Motoman MA1400 along with other second-hand robots can shorten the payback period for a return. Used robots typically cost between 40% to 60% less than new robots. The less expensive your investment is, the less there is to payback, shortening the amount of time it takes to see a return. Most robots earn their ROI within two years, but with a used robot it can be within a few months.
With a shorter return period, used robot buyers will see a positive cash flow sooner rather than later. Once the ROI has been realized, savings become unlimited with the FANUC Arcmate 100ic. Fewer operation costs mean higher profit potentials through the lifetime of your used robot.