In a competitive environment, companies are increasingly under pressure to make investments that are not only cost-efficient but also strategically sustainable. Particularly when purchasing used machinery, the question of actual economic viability arises. The purchase price alone is not sufficient to assess profitability. This is where the concept of Total Cost of Ownership (TCO) comes into play – a business-based method for calculating the actual total costs over the entire lifecycle of a machine. This article highlights why TCO is an indispensable calculation tool, especially for used machinery..
Market opportunities and economic relevance
The market for used machinery is steadily growing. According to a study by the VDMA, the revenue from used machine tools in 2023 was around 6 billion euros in Europe. Reasons for this development include supply shortages of new machines, rising raw material prices, and the desire for short-term production adjustments. Companies are increasingly recognizing that used machines represent not only a cost-effective but also a quick alternative..
However, the cost advantage also comes with risks: hidden follow-up costs, unclear maintenance histories, and limited warranty services can quickly diminish the initial price benefit. Therefore, a comprehensive view of the Total Cost of Ownership is crucial to avoid misjudgments and secure long-term competitive advantages.
Technology use and innovation potential
Technology also plays a crucial role in used machinery. Modern TCO analyses take into account not only energy consumption, repair costs, and availability of spare parts, but also aspects such as digitalization potentials. Older machines can now be smartly retrofitted with retrofit solutions – for example, through sensors for condition monitoring or digital interfaces for integration into existing ERP systems. Such upgrades increase transparency and efficiency in operations and reduce operating costs in the long term..
A practical example: A medium-sized company from Baden-Württemberg invested in a used CNC milling machine with a retrofit upgrade in 2022. By retrofitting with IoT sensors, machine availability was increased by 18% and energy consumption was reduced by 12% – a classic TCO success.
Strategic Partnerships and Service Competence
A key success factor for TCO optimization lies in choosing the right partner. When purchasing used machines, companies should pay attention not only to the price but also to the service and consulting expertise of the provider. Providers offer not only technical inspections but also TCO analyses and financing solutions..
Here comes TBS Swiss, for example – your partner for trust, progress, and success as a service provider. We support you not only in purchasing but also in retrofit projects, strategic maintenance, and integration into your digital infrastructure.
Conclusion
TCO analyses provide companies with an objective basis for decision-making when purchasing used machines. They uncover hidden costs, assist in planning maintenance cycles, and create the foundation for sustainable investments. Those who choose used machines solely based on price risk long-term losses. In contrast, those who seek advice and reliable partners secure genuine competitive advantages.
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