The concept of sharing machines has emerged as a new and revolutionary tool in the business world. The idea was initially adopted by those in isolated sectors of the economy, but has since been incorporated by those previously using only ownership business models.
The Growth of Sharing Economy
The birth of the sharing economy model occurred in the transportation sector, with the emergence of ride share agencies like Uber. Users soon realized the benefits of this service outweighed the cost and inconvenience that often comes with owning and or driving a car, and drivers were able to procure additional income.
The sharing economy has expanded into other sectors like travel and healthcare, but soon another will soon open through the sharing of machines and hardware. The possibilities are endless, and its potential is gradually becoming more visible.
How Would a Sharing Economy Work in the Manufacturing Sector?
The manufacturing sector forms the backbone of most industrialized economies. It is very demanding, however, and new companies require significant infusions of capital for to start their operations. That is why most new entrepreneurs are unable to foray into it.
The sharing machine concept is one that could modernize manufacturing. New organizations without sufficient capital to invest would be able to lease machines lying idle in factories and kick-start their operations in earnest. Manufacturers can make maximize their profits, even when their business is not in full operation. This model is a “win-win situation” for both parties.
Further, as new entrants into the field establish a foothold and begin earning profits on their products, the combination of the conversion of idle assets into profit-making ones and the growth of newer players will lead to overall economic growth that will be beneficial to society as a whole.
Other Benefits of Machine Sharing
The benefits of machine sharing surpass merely benefiting the lender and the borrower- they play a more significant role in improving society.
Growth of Production
It foolish to presume large corporations and organizations will always assume the role of industry leaders. For an economy and a society to truly flourish, there is a need for new entities to emerge and an exchange of fresh new concepts and more efficient production methods to take place.
If the profits earned in the manufacturing industry remains confined to a few groups with economic muscle, the economy will eventually stagnate. By allowing smaller manufacturers to lease heavy machinery rather than being forced to purchase it, they could reduce startup costs, and have a better chance at becoming more active participants in the economy more quickly.
Reduction in Costs
As more new businesses rented machines, rather than purchasing their own, there would be a reduction in costs of the machinery. With consumers disinclined to purchase machinery for small projects, companies would have to turn their attention to either creating new and more affordable machines, or reduce their prices drastically, which would also increase manufacturing. As prices declined, there would be an increase in sales and growth in production.
Generation of Profits from Out-of-Use Machinery
In any economy, assets like machinery have earning potential. If they are not being used, that potential goes to waste. By leasing them to others that need them, their owners can capitalize on that potential. Adopting the machine sharing model would not only provide an economic boost to the owners of the machinery, but a boost to the economy overall. It would also prevent unnecessary production of new, excessive, and useless machines, and protect the resources and money that would have been used to generate them.
Machine sharing holds great potential. Making redundant hardware useful in generating greater economic activity is advantageous to both producers and consumers. It is time for well-established members of the manufacturing industry and new ones seeking to become established to understand the many benefits and adopt them.