Motors Blog

Because the only consideration in most businesses is the immediate bottom line

Dragon

It's really all about cashflow.

Capital costs are not generally tax-deductible, while running costs are.

So that is the major consideration by the Accountants of any business.

If the cost savings payback period of such a motor was in excess of 3 years, almost all financial controllers would not recommend it.

Apart from the cashflow and tax issues, there is the possibility of a process being improved, the product not being required anymore, or superseded.

All these things, along with a general reluctance to spend Capital, unless absolutely necessary, leave many efficient products and processes sitting on a shelf, unused.

It's the same with "energy-efficient" fluorescent lamps, when all costs including final disposal costs are taken into account, these lamps are far more costly to use than a plain incandescent.

In the final analysis, the bean-counters seem to rule.

Kind Regards....