How to Calculate Automation ROI — The Right Way, Ep #31

Lights Out · 26 Dec 2025 · 31m · Episode 31

What this episode covers

Hosts David Buick and Eric Neckic explain how to calculate automation ROI for machine shops using simple and expanded formulas, emphasizing the need for baseline data like spindle utilization and setup times. They walk through a specific example of a robotic tending system, detailing how to quantify labor savings, increased capacity, and scrap reduction to determine payback periods. The discussion covers the financial impact of pallet pools, high-density workholding, and adaptive feed-rate controls, while advising shop owners to leverage automation integrators rather than attempting DIY solutions for complex systems.

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