Operating Costs: A Vital Factor in Investment Decisions
Textile mills need to calculate more than the immediate benefits, says Sivakumar Narayanan, Executive Vice President Uster Technologies.
When market demand is relatively low, textile mills have to perform a balancing act, involving many delicate choices. The deployment of capital and management of personnel levels are critical, not only to current profitability but also to long-term business success when an upturn arrives. When the going gets tough, customers become more demanding, especially regarding quality and value for money, making markets ever more competitive for suppliers.
At such times, investment decisions might tend to focus on quality improvement as a key criterion. But there is often a temptation to snatch at a narrow range of perceived benefits, for instant gains: