A manufacturing company faced a pivotal decision about automation. Running at 100,000 widgets daily with 15 employees and $22,000 overhead per worker, leadership considered a $350,000 inkjet machine capable of 150,000 units per day, requiring only one operator.
The engineering manager calculated: “The ink cost per piece would be less than it’s costing now, and one unskilled person could operate the machine.” ROI under 14 months.
Happy outcome
The company purchased the equipment, reduced widget pricing by two cents, increased sales significantly, and gained their largest customer back from a Chinese competitor. Profits rose $300,000 within 12 months, enabling 14 new customer-service hires.
Sad outcome
Without automation investment, the manufacturer lost orders to competitors who modernized, ultimately closing entirely and cascading job losses throughout their supplier network.
Strategic automation decisions directly impact business survival and broader economic health in communities dependent on manufacturing operations.