The White Paper outlines the benefits of repairing instead of replacing key packing equipment such as trolleys, carts, WAT machines, strapping and wrapping equipment.
Also read: Key Takeaways from the Spring Statement 2025
Rising Costs and Business Uncertainty
It comes amid rising costs and uncertainty for businesses in the UK this year. According to the Business Insights and Conditions Survey from the Office for National Statistics, almost two-thirds (65 per cent) of businesses reported some form of concern for their business.
Southgate Global’s Repair-First Approach
Last year Southgate Global repaired more than 200,000 carts and trolleys that would otherwise have been written off. Its repair-first maintenance programme also created £40 million of CAPEX savings in a single year for one customer and made a real contribution to that customer’s sustainability targets.
Key Insights from the White Paper
This is the latest in a series of White Papers produced by Southgate Global aimed at helping businesses create a more resilient and cost-effective operation.
It sets out the seven key benefits of repairing equipment and machinery, a checklist process for organisations to use, and provides a calculator to enable businesses to work out when repairing is the most cost-effective option over replacement.
Titled ‘Repair or Replace? A Southgate Global White Paper on the ESG and CAPEX Advantages of Extending Equipment Life,’ the White Paper focuses on helping organisations identify when to repair or replace damaged parts and machinery, as well as encouraging them to think more broadly about the type of equipment that can be efficiently repaired.
The Financial and Environmental Case for Repairing Equipment
John Maher, Head of Fulfilment Servicing at Southgate Global, said: “Carts and trolleys, indeed any manual handling equipment, are integral to every warehouse operation no matter the sector. But they’re often perceived as low value and as a result, are frequently replaced at the first sign of wear.
“There is a danger when taking this approach. Often the financial cumulative cost of replacements is not factored in. For example, replacing equipment incurs not only the capital cost of new assets but also additional expenses related to transportation, downtime and integration. Repairing damaged trolleys, either brakes, wheels or general servicing, is far more cost-effective than purchasing a whole new unit. We proved this to ourselves and our customers time and time again in all our calculations. With more than 40 expert technicians maintaining and repairing over 5,000 items of packing and material handling equipment each week across the UK and Europe we’re in a strong position to know.”
Decision-Making Framework: When to Repair or Replace
Southgate Global's White Paper contains a checklist of factors to consider such as cost, the lifecycle stage of the equipment, the wider impact on overall operations and speed when deciding to repair or replace. It has also produced an equation which provides a structured approach to weighing the costs and benefits of repair versus replacement:
A (Value of extended asset life + Operational continuity benefits) - Total repair & maintenance cost = £Value of repair
B (Value of improved efficiency & reliability) - Total replacement cost = £Value of replacement
- If A is greater than B = Repair
- If B is greater than A = Replace
