In response to the letter you received from one of our competitors, we would like your readers to be assured that we stand by the statement that Edgetech’s Super Spacer is the most cost effective Warm Edge Technology available, and by the calculations that demonstrate this. In fact I’m quite confused by Matthias’ response to the Edgetech Challenge Calculator and question how closely he has looked at either it or the press release on which he is commenting!
Firstly, we have NOT been asked to remove his product, Swisspacer V from the Edgetech Challenge Calculator. Behind the scenes we were asked by Swisspacer to change the description of the product on the calculator so the industry “wouldn’t automatically associate the description with the Swisspacer product”, hence my surprise to read Matthias making this very fact public after we removed this reference!
As we mentioned in the press release to which Matthias refers, ‘all prices given in the calculator DO include machinery, labour and all consumables.’ Therefore any investment in machinery (all entry levels of machinery are included) is accounted for. If anything, the machinery investment is understated on the calculator because once the repayments are made, the annual profits will increase proportionately.
Behind the Calculator sits a complex series of spread sheets which cover every aspect of the manufacturing process including machinery investment (which is nowhere near the £1 million that Matthias suggests - an applicator retrofitted to an existing line costs little more than a good quality bar bender, PIB extruder and overhead conveyer). Some warm edge suppliers steer clear of talking about all of these issues and pick off the ones that benefit them the most – labour is most often conveniently ignored. Indeed some Warm Edges such as Swisspacer actually add labour costs due to the antiquated manufacturing methodology of “cut and keying” a process throw-back to the 80’s. I’m sure that Matthias will no doubt respond by saying that they also have bar bending and indeed bar welding both of which need SIGNIFICANT investment and still require labour. The simple fact is that the only way to remove labour and make significant financial savings is to remove manufacturing processes.
Matthias goes on to comment that our assumptions about unit sales are incorrect. Our launch press release also stated that ‘..to complete the Challenge you just need to enter your average unit size and production output per shift.’ So there are no assumptions made about how many units are being manufactured. We leave it up to the sealed unit manufacturer to enter the real number they are manufacturing to see the real savings they could achieve.
Edgetech produced this calculator because we appreciate money is tight right now and want IG manufacturers to be aware of ALL the costs and savings they can make by switching to the various Warm Edge Technologies. We are more than happy to go through the Edgetech Challenge with anyone on a one to one basis and explain the calculations, but it remains a useful, accurate tool to simply demonstrate the savings sealed unit manufacturers can benefit from by using one Warm Edge Technology over another.
Managing Director, Edgetech