In the world of industrial packaging lines, the focus is often on CAPEX: the initial investment in vehicles, software, or machinery. But those who truly want to maximize ROI look further. The real value of a machine is only proven after 10, 20 or - in the case of Bates - even 40 years. In this article, we dive into the concept of Total Cost of Ownership (TCO) and explain why reliability is your biggest cost-saver.
The TCO of a filling machine is the sum of all costs throughout its entire life cycle. This includes:
Purchase price (the visible costs).
Operational costs (energy, labor).
Maintenance and parts (preventative and corrective).
Downtime (the cost of standing still – often the largest expense).
Residual value (what is the machine worth after 20 years?).
The purchase price is merely the tip of the iceberg visible above the waterline. The real costs (and potential savings) lie beneath the surface. A machine that is 10% cheaper to buy, but suffers one day of unplanned downtime every month, will become more expensive than a premium machine within just two years.
We recently saw a perfect example of an extremely low TCO. Two of our filling machines from 1990 filled approximately 21 million bags each over a 24-year period. After a complete overhaul, these machines were put back into service; they continue to run to this day. Completely trouble-free!
What does this mean for the cost per bag? When you divide the initial investment and maintenance costs by a volume of 21 million (and add the current production on top of that), you see that the capital costs per produced unit drop nearly to zero. That is the power of a robust design. That is the power of a Bates filling machine!
1. Preventing unplanned downtime In many companies, downtime is the 'silent killer' of ROI. When a line stops, labor costs continue, deadlines are missed, and the rest of the supply chain is put on hold. A reliable machine pays for itself simply by always being available.
2. Mechanical simplicity and serviceability A machine that lasts 40 years is not necessarily complex. Often, the opposite is true. By choosing high-quality materials and a logical mechanical layout, parts can still be replaced or overhauled after decades. This prevents you from being forced to buy an entirely new machine after 10 years because parts are no longer available.
3. Future-proofing The world changes: new software, stricter safety requirements, or different bag sizes. A high-quality machine, like those from Bates, lends itself to a 'second life'. By updating a 1990 machine with modern control technology, the customer enjoys today’s precision combined with yesterday’s durability. It works perfectly!
Those who look at the next 5 years choose based on the bottom line of the quote. Those who look at the next 30 years choose a partner that builds machines designed to last generations. Reliability is not a luxury; it is the most effective way to lower the cost price of your final product.
Would you like to know how Bates can optimize the TCO of your production line? Contact our experts today.
10-02-2026
When a company invests in new machinery, one key question usually rises to the top: How quickly will we recoup our investment? For manufacturers working extensively with packaged goods, the filling machine is a critical component of the production line. After all, a reliable filling machine can make the difference between production issues and a profitable operation.
At Bates, we understand this better than anyone. With more than 110 years of experience, we design and build filling machines that combine speed, reliability, and durability. The result is a smoother production process and a clear boost in ROI.
07-05-2025
The robot palletising system is a fully automated stacking solution for bagged goods. It significantly increases productivity, reduces physical strain and contributes to a safer work environment. Learn more about how it works, its benefits and the added value the system brings to industrial operations.
16-04-2025
At Bates, we are proud that our company has been providing innovative solutions in the packaging industry worldwide for over 100 years. But where did it all begin? What sparked the need to develop machines for filling bags? In this article, we take you through our journey.
