Understanding the total cost of ownership equation

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The price is what you pay, but the value is what you get. At Tyrone international we know this and we have worked hard in our design, engineering and manufacturing of plant equipment to reduce total cost of ownership (TCO).

Costs come in two forms, capital expenses and operating expenses, and the two are often on a see-saw. Equipment with a lower up-front cost will result in significantly higher operating costs, wiping out any savings.

By engineering our plant to the highest standards, Tyrone International has ensured that there are no hidden costs.

The lifetime cost equation 

Examples of hidden costs include scheduled and unscheduled maintenance, inferior wear parts such as screen decks, log washer blades, chute linings, pipe linings and more, as well as running costs such as total energy requirement. Any of these can cause a cost spiral with operating expenses soon outstripping the initial capital cost of the purchase. In addition, the expected lifespan of equipment is also an important cost factor.

Tyrone International’s high-spec plant equipment has been designed to be cost effective not only by providing a higher throughput, but also by taking design and engineering decisions that save our customers money over time. For example, our design decisions include durability and rapid accessibility giving users the ability to reduce downtime, while our focus on energy use reduces the running costs.

Indeed, with rising energy costs – UK electricity costs are expected to rise by over 50% in 2022, while diesel hit a record high 180.29p per litre on 15 May – running costs are now as important a consideration as up-front costs. Energy inefficient plant machinery could already result in the wiping-out of apparent savings of multiple hundreds of thousands, and with energy costs rising due to inflation and geopolitical events this will only become more and more serious.

“It’s important to look at the whole life cost of plant, and buyers should explore potential operational costs before making a purchase,” said Fintan McKeever, director of Tyrone International.

If you want to lower your TCO, get in touch with Tyrone International to find out more about how we engineer wash plant fit for today and for tomorrow.

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