In the last few The Bleeding Edge columns, I explained the potential for printed electronics to change our industry. This week I'll discuss one area that can certainly benefit from change: Equipment addiction.

When I visit the average PCB shop, a few things jump out at me right away--poor air quality, poor work flow and overall messiness.

And far too much equipment. That's one big beef I have with most PCB shops. They have a love affair with equipment. It's like a contest, or a carnival game.

"Step right up, folks! See how much equipment you can acquire before you go bankrupt!"

And it's a game that too many shops are playing. But not the profitable shops--they have only the quality equipment they need, and it's nicely laid out.

The best advice I can give board shop owners and managers: To be profitable, you must STOP buying equipment. In fact, take a yearlong hiatus from your acquisition addiction.

Here's a real example: The QA manager had to have a $300,000 x-y coordinator measuring unit to measure a few boards for a special customer.

He argued a good case with the company owner and won. Now, much like his hunting-and-gathering ancestors, his adrenalin surged for the hunt. He called in sales people, acted as if he were very important and had a few free lunches. The QA manager spent days searching the Internet for the best model with all the bells and whistles. The purchase order was issued and a press release generated.

Now, realize that this new do-all measuring unit has been sitting in that shop for two years and is not being used. What do you think this machine has cost the company overall--$300,000? Not even close. How about $800,000?

The unit was put on a mortgage, and typically we pay double the original cost in interest and principal charges. The shipping and installation cost was $20,000, and the shop overhead cost for 100 square feet in heating, air conditioning, rent and cleaning will be $80,000 over 10 years.

So you have now spent $800,000 for a machine that you are not using. But wait! It gets better. To pay that $800,000 back with profits at 10% (and not many shops are making a 10% profit) you will have to sell $8 million worth of PCB boards. Yes, that's right, $8 million in sales to pay for the machine that someone absolutely had to have and is now collecting dust.  

Even worse, in 10 years, the value of this machine will be nearly zero. This is just not smart business. One of the best ways to see the real cost of any new acquisition is to multiply any new equipment's price by 20 to see how much sales will it take to pay for the unit. Always consider renting that special machine, or paying for time on a nearby machine. It can save a huge amount of money in the long run. Now, think of all the equipment you own, equipment that no one has used in months, and calculate out the cost.