NGM found that 58% of manufacturers it studied had invested 5% or less of annual sales (three-year average) in capital equipment; 10% invest less than 1%. Furthermore, 50% of manufacturers considered at or near world-class in process improvement invest more than 5% of sales in capital equipment compared to 35% of manufacturers furthest from world-class status.
While equipment bargains are available, the credit needed to purchase machinery is still exceptionally tight, NGM concludes.