Industry Capacity — Matching Marketplace Realities

During expansion periods, equipment manufacturers sometimes offer additional non-core equipment as incentives for taking action on large core purchases.

Undeniably, it's tempting to consider these offers. However, equipment "bargains" such as these are riddled with hidden costs like: diversion of management attention that should be devoted to core business; loss of your production floor space that could be used to build core business; reduction in core business working capital; and full-price variable labor.