You could invest a lot of money offering a 401(k) plan, invest a lot of time in cross-training staff, and invest a lot of effort reconfiguring the metal shop workflow all to boost productivity, support employee retention, and save on costs. But ask a human resources consultant to calculate the actual returns in productivity or the payback period on any of these considerable investments and the answer is likely a blank stare.
Of course, it isn’t possible to calculate exactly how or when every investment would yield a quantifiable return at the time of purchase. Some may never yield any ROI. But now it is possible to calculate exactly how an investment in automating the stretch wrapping process with an orbital wrapping machine would boost productivity and cut labor costs – and by how much – and you could find out before signing the purchase order to buy a pallet wrapper.
In fact, this calculator also reveals how quickly the investment in packaging automation would pay for itself. Try the Pallet Wrapping ROI Calculator now.
Calculate Returns on Pallet Stretch Wrapper Machine
Few investments could be counted on as a sure thing. But our customers insist the TAB Wrapper Tornado is exactly that with zero downside and they have the numbers to document the results. With a fast payback period of about a year, it doesn’t just save money, it starts making money relatively quickly, and the savings recur year after year. Here’s how:
Your company needs two workers to stretch wrap 25 pallet loads per day by hand at a cost of $4.65/pallet load, based on wages, time, and benefits.
You think about buying a TAB Wrapper Tornado to automate the stretch wrapping process.
Now your company only needs one worker to stretch wrap the same 25 pallet loads per day, each in about 30 seconds (and you’re getting a tighter, stronger wrap on the pallet load). Total labor costs per pallet load plummet from $4.65 to just $0.44.
This translates to a total annual savings in labor costs of $27,349.40 – and these savings recur forever. And we haven’t even addressed the productivity gains, safety improvements, or upgrades in employee morale that enhance ROI yet defy proper quantification.
How Much Does a Pallet Stretch Wrapper Cost?
A pallet stretch wrap machine like a TAB Wrapper Tornado orbital wrapper costs about $27,000.00 so if a company typically saves upwards of $27,000.00 in labor costs during the first year alone like in the above example, then the payback period on this investment averages one year. After that it becomes a cash generator.
The greater the volume, the faster the returns and the shorter the payback period.
In fact, even a used pallet wrapper machine for sale would deliver comparable ROI to a new orbital pallet stretch wrap machine built in our Reading, Pennsylvania facility given it has been reasonably well maintained.
Meanwhile, your other worker has been freed from manual stretch wrapping to run a CNC machine, laser cutter, press brake, or other machinery that generates real revenue – it’s found money that can also be credited to your orbital pallet wrapper investment. And no one needed to hire anyone.
To determine your ROI with a TAB Wrapper Tornado, use the ROI Calculator here or contact sales@tabwrapper.com, 610-921-0012.