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New Technology Helps Machine Shops Compete
But Automated Equipment Adds to Breakdown and Business Interruption Risks
U.S. light manufacturers can compete in the global marketplace with new
technology that lowers costs and boosts productivity. Automation and
computer controlled equipment improve the efficiency of machinery and
business systems. These changes also present new risks for manufacturers
and an opportunity for agent and brokers to protect machine shops from
evolving equipment and financial exposures.AMERICAN COMPANIES SUCCEED
Contrary to what many people believe, American manufacturers are successful. These businesses exported $923 billion of goods overseas in 2006, or nearly two-thirds of all U.S. exports, the Commerce Department reports. Productivity gains for manufacturers have more than doubled those of other sectors. That includes small to mid-size machine shops, which seem to be growing in most locations.
SHOPS DEPEND ON HIGH-TECH MACHINES
HSB industry specialists say this trend of expanding manufacturing activity is especially evident when the product is a proprietary design, or when a reliable quantity and delivery are important. This is readily apparent among smaller companies, they add, particularly in job shop machining operations where high performance machine tools and automation make employees much more productive.
A LOT IS AT STAKE WHEN THEY BREAK DOWN
This late model automatic equipment can make a machine shop more competitive by reducing labor costs and producing state of the art precision and quality. At the same time, a greater reliance on high-tech equipment also makes a company vulnerable to breakdowns that can result in expensive repairs, disrupt operations and threaten customer relationships.
Click here for examples of typical claims paid by HSB.
HSB PROTECTS MODERN EQUIPMENT
Equipment Breakdown coverage from Hartford Steam Boiler keeps pace with new technology and exposures. We have the knowledge and experience to help your clients prevent losses and reduce their downtime when a breakdown does occur.
Call your HSB representative, or contact us toll free at 1-800-345-1122.
