Automatic lubrication systems aren’t cheap. With the cost of the system and installation, you can find yourself spending thousands. Despite this high cost, automatic lubrication systems are well worth it because they provide a great return on investment. 

In this article, the LH Travis team will take a closer look at the return on investment for automatic lubrication systems.

How to Calculate ROI for your Automatic Lubrication System

Return on investment, or ROI, is a metric used to evaluate the financial benefits of an investment compared to its costs. In this context, it shows you how long it will take for the savings from installing an automatic lubrication system to pay for the costs of installation. 

To calculate the ROI for your automatic lubrication system, divide the cost of your automatic lubrication system by the amount you spend each year on manual lubrication. This will give you a number indicative of how long it will take for your investment to pay for itself due to the money saved from not manually lubricating. For example, if you calculate it and get 0.75, it will take about nine months for the ALS to pay for itself.

When it comes to your yearly costs of manual lubrication for a specific piece of equipment, here are some factors you should take into account:

  • The costs of downtime, calculated using the cost to rent the machine per hour
  • The cost of labor per hour, in other words, the amount paid per hour to the employee lubricating manually
  • The time spent on manual lubrication
  • The frequency of lubrication, for example, daily or every other day
  • The number of days per year the equipment is used

Save Money and Time With an Automatic Lubrication System

As you can see, an automatic lubrication system is a smart investment that not only makes operations more efficient but also pays for itself in money saved in as little as nine months. If you’re interested in learning more about automatic lubrication systems for your business, our experts can help you determine precisely what you need. Contact LH Travis today to get started.