“The comfort zone results in a loss of profits; to win, we invest in the best technology available.”
Ron Gronback, Owner of PDQ, an aerospace components manufacturer, shares his business philosophy, “Companies looking to grow profit must embrace new technology, not shy away from it. Even if it means upsetting the traditional procedures, you’ve run for years. In the machine tool industry, this is no different; new technology and speed are king!”
We’ve all seen the incredibly fast adoption of smartphones and improved internet connectivity worldwide. It has changed the way we do business. Ron credits his success to his interaction with technology and investment in the best technology on the market every year.
Embracing Technology
PDQ doesn’t let technology pass them up. Ron has found that the best strategic decision for his company is to invest every year in the newest technology coupled with education.
“There‘s a lot of material on “justifying” your capital equipment purchases. It’s a no-brainer to me. The more advanced the technology, the greater my ROI.”
While there are many reasons companies upgrade their CNC equipment, Ron only has one big reason, i.e., you have to be first to win. Ron explains, “In business, second place is the worst place to be; you don’t get the order, and you’ve spent a lot of time trying to. Therefore, you need to have the best throughput to take first place and ultimately win the business and improve profits. I’ll give you an example.”
Investing to Stay Ahead of the Competition
“Recently, I traded in a Eurotech 735 SLY multi-axis that was about two years old for a newer model, the B620 SLY; it was the same configuration but with newer technology. Our throughput increased by 43%!”
Ron doesn’t wait for a new job or large contract to invest in new equipment. He Invests every year to stay ahead of the competition. It’s that simple. “The logic is simple and easy,” said Ron. “With a Eurotech, you get a lot more machine for a little
more per hour — about 3 million more net profit
over a ten-year period!"
Cost Breakdown Example
Let’s say you want to invest in a Eurotech. The initial investment is $40,000 more. The costs for the first five years are only about two dollars more per hour, but the return is over $15 per hour. That’s an increase in pure net profit of $13 an hour.
For the first 5 years, you’re netting over $13 an hour more, and after 5 years, you’re netting over $15 an hour more, i.e., Eurotech increases profits by $270,400 a year and over 10 years by $2,912,000.
“Even if you’re on the right track, you’ll get run over if you just sit there.”
—Will Rogers
This quote from Will Rogers perfectly captures Ron’s business philosophy. “You can’t just sit there in your comfort zone. To continue to be successful, you have to constantly improve by taking action. New technology keeps us ahead of the competition, which is the key to continued profitability.”
“We choose Eurotech — ‘the proof is in the pudding’, i.e., technology. You can buy a 20-year-old Eurotech, and it’s faster than the newest competitors' machines; plus, Eurotech delivers lifetime free training and online phone support, which is essential to utilizing the technology.”
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