Smart Capital Investments Opportunities to Adopt Material Handling Equipment

Industrial robots diversified into different categories depending on the size and specification of the robots which has to align with requirements of application. Often the small and medium industries find it difficult to invest huge amount in automation for once. Some industries deal with seasonal order variability and find it difficult to define the requirements with respect to changing application. Apart from specification changes, companies also find difficult to estimate the number of industrial robots required against the variable order size and this sometimes hinder the production time. The cost of industrial robots in initial phases is generally high, ranging between $50,000 and $100,000. These high prices generally deter the small and medium industrial operators from integrating the robots into their centers.

To overcome all these issues the small and medium companies lease and seek financial support from companies such as BALBOA Capital, ICX Corporation and others. For example, you can probably find a forklift in hundreds of different businesses, from a retail store to a warehouse to a corporation’s storage complex. Items like specialty racks, conveyor belts, loading dock fixtures also make up material handling equipment. Financing this equipment is something most companies like to do, especially since it is usually not directly tied to producing revenue.

Industrial Robotics Market RevenueAccording to Equipment Leasing & Finance Association (ELFA) Q3 2014 report estimated the material handling investments to be increased at 1.8% annualized rate in Q1 2014 while in July 2014, it was up by 6.8% year over year. As businesses in U.S. continue to increase spending on capital equipment, the leasing and financing of business equipment will observe an incessant growth. According to State of the Equipment Finance, $1.4 trillion was invested in 2014 in plant, equipment and software with 62% of these investments being financed through leases, loans and lines of credit.