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Should You Buy New or Renew?

March 1, 2009 By: Mark Arzoumanian Paperboard Packaging


A very tough economy isn't stopping corrugated box plants from making and selling boxes. But now more than ever their customers can demand perfection in quality and delivery. If quality complaints start coming in, these plants have to look at their machinery and ask some very tough questions. The most important one, of course, is: Do we replace this aging machine that's giving us quality problems or do we upgrade it?

D. Phillips
D. Phillips

In March, 60 box making executives attending Chicago TAPPI's most recent meeting in Oak Brook, Ill., heard answers to this question.

In addition to quality issues, Dan Phillips, vice president, sales and business development, Sun Automation Group, says nowadays the drive to upgrade focuses on such issues as reducing waste and standardization. He notes that ink metering systems, which are more precise than wiper rolls, are a popular upgrade.

"Multi-color work at box plants is increasing," he says, adding that independents have been doing this for years but more integrated box plants are getting into it. "Demand for color-to-color registration is growing."

J. Semenske
J. Semenske

The number one upgrade driver, however, is safety, he stresses. Box plants are asking their machinery suppliers to install barrier systems (which won't allow the machine to run if they're open) and switches for lockout/tagout.

Phillips also points out that box plants throughout the country are devoted to their Langston machinery (corrugators, diecutters and flexo folder-gluers) because you can run it hard. Langston went bankrupt in 2001. Sun Automation, which acquired Langston's intellectual assets, has found an ongoing business in providing parts and upgrading its equipment.

Key Question

MarquipWardUnited's John Semenske, sales executive for corrugated container machinery, Midwest, recommended that box makers ask themselves a fundamental question when deciding whether to upgrade or buy new machinery: What's driving the project? Is it customer requirements, production demand, or corporate?

T. Kulwicki
T. Kulwicki

The process you go through should include a thorough evaluation of existing equipment (including how easy or difficult it is to replace parts), fingerprinting (if it's a press), and the plant's line layout.

Other factors to consider include:

  • 1. Capabilities versus requirements;
  • 2. Machine speed and size;
  • 3. Age and condition of the machine; and
  • 4. Operating costs of the machine.

MarquipWardUnited offers not only upgrades to existing machines in the field but factory certified rebuilds, field rebuilds, and pre-owned equipment (rebuilt or as is).

Semenske told the audience that the benefits of upgrading include:

  • 1. A smaller capital investment;
  • 2. Smaller training impact;
  • 3. Reduced installation time;
  • 4. Possible freight savings;
  • 5. Foundation/building modification savings; and
  • 6. Financing/tax benefits.

Ted Kulwicki, MarquipWardUnited's aftermarket product supply manager, reviewed the benefits of buying new equipment. The obvious one is performance (faster running speeds, top notch board quality, less trim, etc.), but others worth mentioning include reduced maintenance costs, reduced manpower, a new machinery warranty (longer and more inclusive), financial considerations, and tax benefits (think depreciation).

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