ROI vs. TCO: Why Manufacturers Get Automation Costs Wrong
When evaluating automation, most manufacturers lean on ROI. It’s quick, familiar, and looks good on paper — but it misses the real costs of ownership.
ROI only considers upfront equipment spend and basic labor savings, leaving out the ongoing expenses that can make or break your investment. Installation, change orders, spare parts, maintenance, downtime, retraining, and production changes all add up. The result? ROI often paints an overly optimistic picture, while the actual cost of ownership spirals out of control.
That’s why Total Cost of Ownership (TCO) matters. TCO takes the full lifecycle into account so you can budget smarter, avoid surprises, and choose solutions that actually deliver long-term performance.
In our guide, ROI vs. TCO: Why Manufacturers Get Automation Costs Wrong, you’ll learn:
- The hidden costs ROI leaves out (and what they really add up to)
- Why two manufacturers with the same system had drastically different outcomes
- How Formic’s Full Service Automation model delivers the lowest TCO with no CapEx, no hidden costs, and contracted performance
Download the Guide ↗
AUTOMATION THAT JUST WORKS
NO CAPEX
No large investment, upfront payment, or long term commitment required. Pay as you go for unlimited month-to-month use of case packing and palletizing systems.
NO RISK
As your production needs change, your equipment can change with you while maintaining your same fixed price.
NO PROBLEMS
Ongoing operational success is ensured through 24/7 on call bilingual tech support and 100% maintenance coverage, both preventative and corrective, all for one fixed rate
About Formic
Formic was founded in 2020 to accelerate the accessibility and ease of automation across
American manufacturing by delivering the positive outcomes that robotic automation enables:
more capacity, consistency, and reliability; less cost, downtime, and worker safety issues.
As the leader in Full Service Automation, Formic provides everything manufacturers need to
automate with confidence: the equipment to do the job, the service and parts to keep it running,
and the technology to continuously improve productivity. With $0 CapEx required, 24/7 technical
support, and 100% maintenance included, we make automation simple, scalable, and risk-free.
“Having a partner like Formic that handles installation, maintenance, and equipment swapping allows us to stay focused on what we do best: making great snacks. It also reduces the risk and guesswork that can come with large-scale automation projects."
Trusted by America's Small & Mid-Market Manufacturers
“Formic has skin in the game because they're incentivized based on when the machine is running, not when it is down.”
“By installing the latest automated equipment, we can produce more and transition repetitive jobs to roles like machine operators and mixers.”
“We've been looking at automation for a few years... Not having any upfront costs (with Formic) was very attractive and helped ease the minds of owners during our capital planning meetings.”