published on 12/06/09
With meltdown in the money markets, companies are looking at finance schemes and leasing to get their hands on new machines, as well as making the most of what they've got

In the 2009 Budget, Chancellor Alistair Darling announced that the tax allowance on capital investments would double, from 20% to 40%.. The reason for the allowance is, of course, that the economic slowdown has caused sales of almost all high-value goods to grind to a halt.
The problem is twofold. As consumers cut their spending, brands and retailers are reducing orders, leaving suppliers with reduced contracts. The economic uncertainty means that even suppliers with full order books are reluctant to assume they will stay that way. As a result, many packagers are unwilling to splash out on new equipment.
To try to counteract this, a number of equipment manufacturers have started offering finance schemes – interest-free hire purchase and leasing arrangements are just two of the options on offer with a team of contract engineers on offer to install the machinery. And for customers that still aren’t willing to take the plunge with a new machine, equipment manufacturers are looking to expand their spares and servicing departments, offering advice on how to upgrade existing equipment with mimumum disruption, with the option sometimes having a skilled team of contract engineers to assess the current machinery using pro active or re active methods, with the result more often than not of any mechanical problems being nipped in the bud by the contract engineers before new machinery is required.


Read the full article at packagingnews.co.uk