How Do I Choose a Stretch Wrap Machine?

How do I know if I need a stretch wrap machine?
There are two ways to apply stretch wrap - by hand and with a machine.  While there are many variables to consider when determining if you need a stretch wrap machine, here are the primary considerations:

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• How many pallets per day (or per hour) do we typically wrap?
  If you wrap more than four loads per hour, or over 30 per day, then a stretch wrap machine would be a good investment.  A stretch wrap machine can be cost-effective even if you wrap as few as 10-15 loads per day.  The more loads you wrap per day, or per hour, the more sense it makes to invest in a stretch wrap machine.
• How much prestretch is required to effectively secure your load?
  The average person using hand wrap can attain a consistent prestretch of maybe ten percent.  Stretch wrap can attain a prestretch of over 250 percent, depending upon the type of film and the machine being used.  The higher the amount of prestretch, the more the film is stretched, the more tightly the load is secured, and the more loads you can wrap with one roll of film.
• How much time is being spent wrapping by hand?
  This is a subjective variable, but a stretch wrap machine can literally enable your worker to press a button and let the machine finish the job while they tend to other tasks.
• Safety
  By eliminating the need to hand wrap, a stretch wrap machine can dramatically increase employee safety.  There is no need to walk multiple times around a load, most of that time being spent bent at the waist holding a roll of stretch wrap.  One stretch wrap machine can certainly be more cost effective than one worker's comp claim - both in terms of time and money.

How much does a stretch wrap machine cost?
If your business manufactures or fabricates products you might have purchased equipment in the past such as an hoist, or a workstation jib crane so you might be familiar with the process of procuring capital equipment. If you've only and always used hand wrap, the cost of a stretch wrap machine (usually starting at around $6,000) can be intimidating.  But the purchase of a stretch wrap machine can be most accurately be looked at as an investment, rather than simply an expense.  A stretch wrap machine can offer you significant savings in the following ways:

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• Film Savings
  As mentioned above, the average worker using hand wrap can typically achieve no more than 10% prestretch.  A stretch wrap machine, however, can achieve over 250% prestretch, depending upon the film and the machine.  Prestretch simply refers to how much the film is stretched.  The greater the film is stretched, the less film you are using, and the more loads you can wrap with one roll of film. (see table below)
• Time Savings
  Depending upon the size of the load, it can take one employee as much as three or more minutes to wrap one load.  If they're wrapping 20 loads per day, for example, that's 60 minutes - or one hour - spent wrapping.  With a semi-automatic stretch wrap machine, that time can be spent doing other things rather than walking in circles around a pallet.
• Safety
  As noted above, the cost of one stretch wrap machine can be significantly less than the monetary and time expense of one worker's comp claim filed due to back or other injuries sustained by using hand wrap.

The chart below illustrates the potential savings of using a stretch wrap machine versus standard hand wrap.  The comparison is made using true 80ga film. 

As you can see, for a machine that lists at $5995, you can pay off your investment in anywhere between 6 months and 4 years, depending upon your volume.  With a higher grade machine, listing at $8995, it can be paid off in as soon as 8 months.  And with either scenario, you're using far less film and therefore spending less money -  you can wrap almost 70 pallets with one roll on a stretch wrap machine while only 9 with one roll of hand wrap (or 36 with a 4-roll case) due to the ability of the machine to achieve far greater and consistent stretch from the film.

Another way of looking at it is that with one pallet of 80ga 20" machine film (40 rolls) you can wrap approx  2750 loads (assuming 150% stretch).  With one pallet of 80ga 18" hand wrap (192 rolls, or 48 cases) you could wrap only 1690 loads.  No matter how you look at it, using a stretch wrap machine will save you money and time in the long run.

If the cost is still a problem for your budget, consider using the Section 179 tax deduction when you file your taxes.  This can help cut your end cost by close to forty percent.

How Do I Select a Stretch Wrap Machine?

You will need to know the following information in order to determine what stretch wrap machine will work best for your packaging needs:

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Rotary Arm Wrapper

• Minimum, average, and maximum load weights
• Maximum load height
• Maximum load width/depth 
• The average number of loads per day, or per hour, you typically wrap
• The nature of the product(s) being wrapped
• The width film do you intend to use
• If you will be loading the machine with a forklift only or a pallet jack as well
• If you need an integrated scale
• The color stretch wrap you use (this can affect the photo-sensor eye)

 

Section 179 - Tax Deductions for Business Equipment and Improvement

With the end of the year rapidly approaching, it's unfortunately time to start thinking about taxes.  But with taxes come deductions.  Many business owners are not aware of Section 179, do not think about it until it is too late or are not aware of how comprehensive and beneficial it is.

What is Section 179?
In short, Section 179 allows a business to deduct any equipment that counts as a business improvement.  In the aspect of packaging supplies, this can include stretch wrap machines and dispensers, tape machines/case sealers, and strapping machines and tools.

The primary requirement is that the equipment be purchased in the calendar year for which you will be filing - in this case, by the end of 2013.  As with all tax questions, there are many other details, but this one is pretty simple - as long as it is equipment that helps improve your business, it's eligible, all the way up to $560,000 in total deductions for that calendar year (with single item purchases of up to $139,000).  Section 179 includes both new and used/refurbished equipment.  There is no minimum on the amount of purchase.

What Qualifies for the Section 179 Deduction?
The equipment listed below qualifies for the Section 179 deduction as long as it is purchased and put into use within the calendar year it is claimed as a deduction:

• Equipment (machines, etc) purchased for business use 
• Property attached to your building that is not a structural component of the building (i.e.: a stretch wrap machine, case sealer, large manufacturing tools and equipment)
• Tangible personal property used in business
• Business Vehicles with a gross vehicle weight in excess of 6,000 lbs
• Computers
• Computer "Off-the-Shelf" Software
• Office Furniture
• Office Equipment
• Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes). 

What Packaging Equipment Qualifies for Section 179?
Following is a general list of what packaging supply equipment would qualify for the Section 179 deduction:

• Stretch Wrap Machines ($3600 and up)
• Case Sealers/Tape Machines ($3000 and up) - Contact Us
• Water-Activated (Gummed) Tape Dispensers ($350 and up)
• Strapping Machines ($800 and up)
• Semi-Automatic
• Automatic
• Stretch Wrap Dispensers ($30 and up)
• Impulse Sealers/Poly Bag Heat Sealers ($75 and up)
• Pneumatic Strapping Tools ($900 and up)
• for Steel
• for Poly
• Battery Operated Strapping Tools ($1800 and up)
• Manual Strapping Tools

We at Packaging Supply Answers can help you with any of these purchases through links to our web sites to the right or the above-noted direct links to the products that are listed on our web sites.  For pricing or quotes on any of these items you can contact us directly or visit our web sites.  We also have another post that tells you more about how to choose a stretch wrap machine and how it can help you and your company.

What Kind of Savings Can Section 179 Offer Me?
The amount you save obviously relates to the amount you spend, but in terms of items referenced above, this is an idea of the amount of savings you can expect from the Section 179 deduction:

Please note that though this chart begins at $150 and ends at $20,000, you can claim deductions for purchases with no minimum and well over $20,000.  More specific calculations can be made by using this free Section 179 calculator.

More Information

You can find more information on Section 179 here (this site is not related to and has no connection to Packaging Supply Answers or any of our eCommerce web sites).  Once you understand how it works, let us know how we can help you improve your business and maximize your investment.  However small or large, we will be happy to assist you.