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Learn About Uniform Conveyor ROI for Your Operations

Apr 25, 2017 | Blog


Economical gas mileage is an enticement to buy a hybrid. Getting 50 miles per gallon is attractive. However, while the hybrid looks good on fuel, the return on investment is simple sticker shock, here’s the math. At 50 miles and $2.50 per gallon, the annual fuel cost for the hybrid—at 15,000 miles a year—is $750. For a car that averages 25 miles per gallon, the annual cost of gas is $1,500 a year. It makes sense to buy the hybrid. However, hybrid cars are expensive and can sell for $15,000 more than the same non-hybrid model. At that difference, it will take 20 years to recover the hybrid, not a very good Return on Investment (ROI) to help the environment.

For business, an ROI for capital purchases of 2-3 years makes a lot of sense. With manufacturing and operating automation used to decrease labor costs, determining the uniform conveyor’s ROI is relatively easy. The operation of a hotel uniform distribution room may need to serve 800 employees who pick up and drop off uniforms on a periodical basis. Assume the room that stores and distributes the uniforms is open six days a week, 16 hours a day or 112 hours a week. There’s a room supervisor, one or more seamstresses and other staff to meet and greet employees. There could be as many as six employees in the room. At an average rate including all benefits of $14 an hour, that’s an annual operating budget of $175,000 a year.

Through automation, the staff could be reduced to 10 hours a day, or 70 hours a week, resulting in three or fewer employees. With three, there’s an annual savings of $87,500, about the cost of one system to serve 800 employees which would make the uniform conveyor ROI one year. That’s a little too aggressive because one system may not be enough. Even at two systems, or an investment of $175,000, the uniform conveyor ROI is two years.

Every situation is different. For uniform distribution, there may be fewer garment room personnel. Uniforms may be cared for by employees. There are other variables to consider such as the annual purchase of uniform inventory. And, if automation is being considered at the outset, at the design phase of a hotel, consideration must be given to eliminating fixed lockers for employees and using personal locker bags hanging on a uniform distribution system. It’s a trade-off of space for space and equipment, but for operating budgets, the investment is well worth it.

When making capital purchases, considering price alone does not tell the whole story. Consider the savings and how long it will take to recover the investment. And, remember, once the investment is recovered, it’s like putting money in the bank.

Pacline Overhead Conveyors assist hotels with Return On Investment calculations when considering automation. We will design and price a uniform conveyor system especially for your project, utilizing available space and calculating efficiency and savings. We offer unique systems that require minimal maintenance and unparalleled safety factors and a value that’s quick to recover. Watch the video: Automated Uniform Conveyor System and reach out to us.


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