New Loom versus Used Loom Investment Decisions
topic
The decision between new and used shuttleless loom investment compares the capital cost differential of 40 to 70 percent reduction for used versus new looms against the higher maintenance cost, shorter remaining service life, and limited technical support of used equipment, with secondhand Sulzer projectile looms and older generation rapier looms being particularly available in the used market, and with the economic analysis requiring total cost of ownership comparison over the expected remaining service life including reconditioning cost and lost production from higher downtime.
Role
Provides the financial framework for capital-constrained weaving operations to evaluate whether used loom investment provides competitive production economics relative to new equipment, with the used loom market being particularly important for developing-economy weaving operations where the capital cost saving of used equipment is the primary determinant of business viability, and where the maintenance capability and spare parts availability in the local market are critical feasibility constraints for used equipment that may not receive manufacturer support.