Investing in a lifting aid is almost always worthwhile, but you also need to be able to demonstrate that. A well-reasoned business case will help you justify the decision internally and make the right choice for your situation. In this step-by-step guide, you’ll learn how to build a business case for an ergonomic lifting aid, from the initial problem analysis to the presentation to the decision-maker.
Identify the current situation and challenges
Every strong business case starts with a clear description of the problem. Before discussing costs or solutions, you must thoroughly document the current workflow. Visit the workplace, observe the processes, and talk to the employees who deal with the workload on a daily basis.
Specifically note which tasks are physically demanding, how often they are performed, and what the consequences are. Consider complaints of back pain, fatigue at the end of a shift, slow movements, or safety incidents. Depending on the application—such as pallet handling or moving heavy boxes—the challenges can vary significantly.
- What products are being lifted, and what are their weights and lifting frequencies?
- How many employees are involved in the process?
- Have there been any reported complaints, workplace accidents, or sick leave reports?
- Does the current work method comply with applicable ergonomic standards?
After conducting this assessment, you’ll have an accurate picture of the situation. This forms the basis for all subsequent steps in your business case for ergonomic aids.
Calculate the direct and indirect costs of the current method
Once the pain points are clear, translate them into financial impact. This is a crucial part of the business case for material handling, because decision-makers think in terms of euros. Distinguish between direct costs, which are visible on the balance sheet, and indirect costs, which are less obvious but can carry at least as much weight.
Direct costs are relatively easy to calculate. Indirect costs require a bit more calculation, but are often the deciding factor.
- Direct costs: labor costs for additional personnel during physically demanding tasks, replacement costs due to absenteeism, medical expenses, and insurance premiums following workplace accidents
- Indirect costs: loss of productivity due to fatigue or pain, costs associated with long-term absenteeism, increased employee turnover, and lower quality due to human error during strenuous tasks
- Regulatory costs: potential fines or compliance costs if the situation does not comply with the Welfare Act or ARAB standards
Add up all the costs for a representative period, such as one year. This total serves as the starting point for the ROI calculation later in the business case.
Select the appropriate lifting device for the application
Now that the cost analysis is complete, it’s time to identify the right solution. The choice of an ergonomic lifting aid depends on the nature of the load, its weight, the frequency of the task, and the available space. The wrong choice will result in a solution that isn’t used or that creates new problems.
View the complete product line and match each application to the most appropriate category of tools. When making your selection, consider the following criteria:
- Determine the maximum weight the device must be able to move, including a safety margin.
- Analyze the direction of movement: Is it lifting, tilting, rotating, or moving horizontally?
- Check the available space on the work floor and whether any special floor or ceiling mounts are needed.
- Consider how often you'll use it: a device intended for intensive daily use requires different specifications than one intended for occasional use.
- Ask if a demo is available so that employees can test the device in their own work environment.
After this selection process, you will have a specific product choice that you can support with technical arguments. This makes the business case more credible and demonstrates that the decision has been carefully considered.
Calculate the investment and operating costs
Now that you know which lifting aid you need, determine the total cost. An investment in a lifting aid involves more than just the purchase price. Having a complete picture gives the decision-maker confidence that there are no hidden costs.
Break down the costs into two categories:
- Investment costs (one-time): purchase price of the device, installation costs, any necessary infrastructure modifications, and employee training
- Operating costs (annual): maintenance and inspections, replacement of wear-and-tear parts, energy costs for electrical appliances, and any service contracts
Request quotes from suppliers and check whether any subsidies or tax benefits apply, such as the investment tax credit for ergonomic workplace modifications in Belgium. This can significantly reduce the net investment cost and strengthen the business case.
Calculate the return on investment and payback period
Once you have the costs of the current situation and the costs of the solution, you can calculate the ROI of the lifting aid. This is when the business case becomes truly compelling.
Use the following formula as a starting point:
- Calculate the annual savings: this is the total of the current costs (Step 2) minus the annual operating costs of the new unit.
- Divide the total investment cost by the annual savings to calculate the payback period in years.
- Calculate the ROI over a five-year period: (total savings over 5 years minus total investment) divided by total investment, multiplied by 100.
Be conservative in your estimates. A realistic calculation is more credible than an overly optimistic projection. Also include qualitative benefits that are harder to quantify, such as higher employee satisfaction, a better employer image, and reduced employee turnover. These elements support the figures and make the business case more complete.
Present the business case to the decision-maker
A well-reasoned business case for ergonomic aids also deserves a clear presentation. Keep the structure simple and ensure that the key message is immediately clear: what is the problem, what are the current costs, and what return will the investment yield?
Organize the presentation as follows:
- Problem and context: Describe the current situation in two to three sentences, highlighting the most significant facts.
- Financial impact: Clearly present the annual costs of the current approach, preferably in a simple table or chart.
- The solution: Present the selected device along with a brief explanation of why it is the best choice.
- ROI and payback period: Compare the investment and the savings, and explicitly state the payback period.
- Recommendation: Conclude with a clear proposal, including a suggestion for the next step, such as a demo or a quote.
Anticipate questions about risks, alternatives, and the reliability of your assumptions. The better prepared you are for counterarguments, the more likely the decision-maker is to agree. If possible, refer to similar situations or real-world examples from your own industry.
How Logitrans Handling Helps You Build Your Business Case
We understand that an investment in material handling equipment must be justified internally. That is why we support our customers not only in selecting the right product, but also in justifying their decision.
- Free Workstation Analysis: Our specialists analyze the current situation on the work floor and identify the pain points, so you can build your business case using concrete, reliable data.
- Product demo in Drongen: Test the lifting aid with your own materials in our demo room before making a decision, so that employees and decision-makers can evaluate the solution for themselves.
- Customized advice: Based on your application, load weights, and frequency of use, we’ll recommend the most suitable equipment from our extensive lineup, ranging from vacuum lifters and hoists to pallet trucks.
- Maintenance Contracts: To ensure accurate calculations of operating costs, we offer transparent service contracts that guarantee preventive maintenance and maximum safety.
Would you like to get started with a free job analysis, or do you have questions about a specific application? Contact us, and we'll guide you through the process step by step.
