Hi- I head up finances for a medium-sized manufacturing company. During my research I came across the ITAC and the no cost assessments you provide which seem like a good way to save money. What is the typical ROI for your recomendations for a medium-size manufacturing company?
On average, ITAC recommendations have a simple payback of less than two years. Many low-cost measures like compressed air leak repair or lighting upgrades pay back in under six months. Even larger capital measures, like boiler upgrades, often fall under a three-year payback window, which compares favorably with many standard capital investments.
That’s helpful, but our capital budget is tight. How much of this is low or no cost?
Roughly one-third of recommendations require little or no capital. These include operational changes, paying bill on time, improved maintenance, and staff training. Another one-third involve moderate capital, like adding VFDs to motors or fixing compressor leaks. The last third are larger investments, but you have flexibility to implement in phases. There are also ITAC implantation grants which can assist with capital investment.