Problem
In the face of economic headwinds, two mid-sized manufacturers – a food processor and an automotive supplier – are making significant investments in manufacturing automation to maintain competitiveness and capitalize on opportunities.
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A U.S. food processor saw an increasing need to enhance its operational efficiency and reduce reliance on labor. As labor scarcity became a pressing issue, the company decided to invest in advanced automation technologies. However, the rising costs of equipment, money, and tightening credit conditions presented financial challenges.
Solution
Traditional loans and revolving credit facilities were no longer viable due to rising interest rates, costs, and delicate banking dynamics. Tax lease financing provided a flexible solution, allowing the food processor to upgrade their technology without a significant upfront investment and with more flexibility about long term use.
Impact
This approach not only helped the company maintain cash flow, but also enabled them to stay ahead in the market. This is just one example that illustrates how mid-sized manufacturers can strategically use financing to overcome financial barriers, invest in necessary technologies, and maintain their competitive edge in challenging economic times.
An Automotive Supplier’s Strategy
A Food Processor’s Journey
An Automotive Supplier’s Strategy
A Food Processor’s Journey
Financing with a usage mindset instead of cash buying with an ownership mindset provided the automotive supplier the necessary flexibility to manage their equipment investment needs efficiently and take advantage of re-shoring and government incentives while continuing to innovate and expand for the long-term.
Impact
Despite budget constraints, the automotive supplier turned to financing as a strategic option. By shifting from a CapEx mindset to an OpEx mindset, financing allowed them to implement cutting-edge automation systems – which were critical for maintaining their competitive edge – without cost concerns slowing or stalling the project.
Solution
An automotive supplier faced the dual pressures of performance and cost management. With a focus on re-shoring and leveraging government incentives, the company needed to expand its property, plant, and equipment to support ongoing growth in the EV sector.
Problem
Transform Your Automation Sales With LEAF
For decades, LEAF has helped manufacturers adjust, evolve, and adapt through economic cycles and position themselves for success. To discuss how offering financing for your automation solutions can break through buyer hesitation and drive bigger sales that close faster, contact us today.
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