‘Just hurry up and do it, I wish I’d done it 4 years ago!’ Dean Kidd, Kidd Truss.

“Invest in capital equipment to improve your operational processes”. One sentence that is logical and makes the whole concept and process sound so easy. However, in reality, taking the leap, signing the documents or getting the bank loan is not as simple as many would have you believe.

To invest in capital equipment, you need revenue, cash or the ability to borrow money. Basically assets that will satisfy the increasing demands and needs of the bank. What if there was an alternative? What if you could get the capital equipment needed to improve your operational processes without involving the banks.

Kidd Truss found a solution: hiring the equipment. “The ability to lease was an important factor for me and Vekta made it really easy with tailored payment terms.” For many companies, like Kidd Truss, there is an immediate need and incentive to invest in capital equipment, specifically, automation. An increased level of automation is needed to grow the company, improve profitability and competitiveness, but outright purchasing can be difficult and a limiting factor.

Kidd Truss was paying a fortune in overtime, yet as a relatively young company purchasing the required equipment was a challenge. The flexibility offered by a direct hire agreement between Vekta and Kidd Truss allowed a tailored arrangement to be agreed upon that almost immediately started to save the company thousands of dollars a week in over time. Once timber savings from optimisation, productivity improvements, benefits from printing technology, etc. are taken into account as well, it is easy to see why hiring a Vekta Razer system made perfect sense for Kidd Truss.

So How Does It Work?

During your agreed hire period, Vekta provides the equipment, all of your technical support, servicing and software upgrades for a flat monthly fee. If, at any point, either before or after the hire contract expires you decide that purchasing the equipment outright makes sense, the hire agreement includes an agreed upon formula for calculating what the purchase price will be at that point in time.

  • There are no penalties or hidden figures.
  • Your equipment isn’t locked in with a particular nail plate provider.

The intention of Vekta Hire is to help companies, particularly small to medium sized fabricators, invest in the technology they need to be competitive and to grow. By hiring directly, a customer that might not have the assets to purchase outright, can still get the equipment they need to grow.

Another advantage, the hire payments will likely be considered an expense (tax deductible) where as a loan repayment isn’t (only the interest is tax deductible). As a result, a hire arrangement is likely to create a tax advantage over an outright purchase (independent financial advice needs to be sought).

For Kidd Truss, the advantage of the hire agreement was not the only drawcard. Dean explains:

“I was interested in the Vekta Razer as my prior history with the Razers had been good. I wanted something that was proven in the market and could be trusted; if something breaks down I need it fixed and I felt that Vekta and the Razer gave me that assurance. The footprint was also important. It needed to fit into my factory space… One of the main benefits was dealing with an Australian supplier and support team.”

Another advantage is that Kidd Truss has been able to decommission three Spida Saws and re-purpose one for framing. Resulting in cost and productivity savings in maintenance and operating.

“My operators have all had experience with different linear saws. They really love the Razer and how easy it is to use. They’re enjoying having no overtime. The installation was perfect, completed over two days and training started on the third. The whole Vekta team has been fantastic! David was awesome, he was helpful with the guys and took his time with helping them learn.”

There have also been a few surprise elements for Dean since installation of the Vekta Razer S5.

“There are two features that have really stood out for me. The ability to run ‘Razer View’ on my computer. I can sit in the office and oversee what is happening in production, review statistics and if the guys get stuck, I’m instantly notified and able to help. The ‘on-the-fly’ cutting (optimising random lengths of timber) is also fantastic. I’m able to put re-used timbers on the live deck and the Razer automatically works out what can be cut using them.”

All of Vekta’s product lines are available for hire including; the Razer V5 Saw, Razer S5 Saw, PackFeeder, StakPro systems, Truss Transfers, Smart Roller Conveyors and even the Stack n Gap system. When questioned about what Vekta product Dean was going to hire next, “I’m definitely interested in the Packfeeder system or one of Ed’s secret ideas… but don’t tell anyone.”

To find out how you can stop overtime payments, improve the safety, efficiency, productivity and give your operators something to dance about all without taking the risk, contact Vekta info@vekta.com.au

If you are curious about the dancing (and you should be!) check out the Vekta Happy Dance!