The True Cost Behind the Use of Panelizing Equipment
As a company with vast knowledge in traditional panelizing for the construction industry, we know that semi-automated panelizing can seem like quite the investment compared to conventional practices. In fact, when new or potential customers prepare to make the switch over to this new style of panelizing, the initial conversation often includes the key question, “What is the overall cost, and what can my business gain from it?”
There are three essential factors that play into the overall cost of panelized production, and as part of our Foundations of Panelized Construction series, this blog will outline how customers can maximize their equipment investment, save on labor costs and identify hidden costs (and learn how to avoid them).
Equipment investment vs. long-term savings
At first glance, panelizing equipment might seem like a major capital expense. Sometimes, it is, depending on the sophistication of your panelizing layout and production output. A high-volume production line with advanced automation might run upwards of a few hundred thousand dollars, and over a million with advanced automation. But for operations just starting out in their business endeavor, the entry point is often far more accessible.
For instance, Panels Plus provides simple workstation systems with scalable options that allow you to grow as your production output needs increase. Many customers have reported paying off equipment within months when tied to large-scale projects, with most seeing a return within two years thanks to faster output, lower labor costs and reduced variables in their production.
Labor efficiency ROI
With a controlled climate and more predictable scheduling, both entry-level and highly skilled contractors can safely use panelizing equipment rain or shine and with fewer worker injuries.
Also, when choosing automation as part of your panel production, the reliability and repeatability of your production output are maximized through consistent results. In one study, we found that in offsite construction, up to 40% less time was needed compared to manual labor, which also reduced the overuse of materials such as nails and fasteners.
Hidden costs and how to avoid them
Every avenue of production has its hidden costs, and oftentimes, first-time off-site builders are unaware of the full scope of challenges that can occur with off-site construction. The combination of transportation logistics, panel storage space, crane rentals and more all add up over time if not addressed correctly. The key to avoiding these costs is through keeping up with routine preventive maintenance of your panelizing equipment and never overlooking skilled labor. This ensures you avoid negligence of your machinery and keep your equipment (and business, for that matter) running as smoothly and efficiently as possible.
Panelized construction isn’t about cutting corners – it’s about building smarter. When looking at the overall scope of equipment, labor, layout and hidden costs, the true value in investing in high-quality panelizing construction equipment becomes clear. It’s not a one-size-fits-all approach but a scalable one. Whether you’re starting small or expanding a large-scale operation, Panels Plus has solutions that meet your current needs and future needs. Let us grow with you. Contact us today: https://panplus.com/contact/.