GIG Karasek Pay-Per-Use: Flexible Financing for Plants in Dynamic Markets

In economically challenging times, the need for flexibility, balance sheet-neutral investments, and lower interest charges increases.

At the same time, the Internet of Things (IoT) opens up the opportunity to reduce the investment risk for plant operators with pay-per-use services.

In order to take this potential into account and provide customers with greater flexibility, GIG Karasek offers financing solutions that can be variably adapted to plant utilization and thus facilitate investment decisions.

Andreas Schnitzhofer, Managing Director at GIG Karasek, stresses the company’s clear focus on supporting customers and partners with forward-looking concepts:

Technological progress in the context of Industry 4.0 not only has an impact on production plants, but also on plant financing in particular. Only through the integration of Industry 4.0 concepts is sufficient data now available to effectively implement pay-per-use (PPU) models.

This is because the data collected can be used not only to analyze the operating parameters, but also to calculate flexible repayment rates based on usage.

The basis for pay-per-use is the networking of the systems with an IIoT (Industrial Internet of Things) platform, which acts as the digital backbone. It enables previously agreed parameters to be recorded in order to carry out precise billing based on actual usage.

Instead of paying fixed monthly installments, the calculation is based on the effective duration of use, the production volume, or other measurable key figures.

The current focus of GIG Karasek’s PPU solutions is primarily on mini-plants. Of course, we are also open to taking on larger projects, but these require more detailed planning.

For companies in volatile markets, paying off traditional loans for the purchase of machinery and equipment can quickly become a major burden, especially if capacity utilization is lower than planned.

To minimize this risk, in addition to traditional financing with fixed instalments, GIG Karasek is offering its customers two flexible financing options: sales financing and equipment as a service (EaaS). If the utilization rate is low, the amount of the repayment instalments decreases. If usage increases again, the repayment installments rise in parallel.

Financing is provided by a financing service provider (sales financing) or GIG Karasek itself (EaaS). The specific structure of the financing solution is customized according to the customer’s requirements.

GIG Karasek cooperates with the Austrian company Findustrial to ensure the smooth automated billing of pay-per-use financing. Efficient processing via the Findustrial platform ensures professional implementation.

Under this model, a leasing company takes over the financing of the system. Ownership of the system remains with the financing partner until the end of the term. At the end of the term, you have the same options as with a conventional leasing contract.

Pay-per-use leasing is based on flexible leasing rates within a defined flexibility corridor:

• If less is produced, the leasing rate is automatically reduced to a fixed minimum.
• If the business volume and thus the utilization of the system increases, the leasing rates also increase automatically up to a defined maximum, without the need for discussions with banks, for example.

This means that the model allows the plant operator a high degree of flexibility with repayments and at the same time offers the financing partner a clear and comprehensible expectation of utilization by setting certain minimum and maximum limits.

The major advantage of this financing solution is the variable term of the leasing contract, as the financing contract can be terminated earlier in the event of increased utilization. The leasing period is shortened accordingly and the interest burden is reduced. In addition, a higher level of repayment with correspondingly higher profits is tax deductible and has a big impact in good financial years.

In contrast to sales financing, the plant does not become the property of the financing company in the EaaS model. It remains the property of GIG Karasek and is provided to the plant operator for a fee according to the pay-per-use model. GIG Karasek assumes full responsibility for maintenance, service, repairs and the provision of spare parts and guarantees high system availability. The operator is spared the high capital expenditure and can pass on part of the operating risk to GIG Karasek.

A digital twin – a virtual representation of the physical plant – contains detailed information on usage duration, production volumes, and other measurable key figures. This data is used to precisely determine actual usage and automatically calculate and pay the pay-per-use fee via the Findustrial platform. In contrast to pay-per-use leasing, no minimum and maximum limits are relevant for EaaS.

The use of a digital twin is not mandatory as part of the EaaS model, but it does offer additional benefits. The Digital Twin monitors and analyzes the system status in real time, enabling maintenance and servicing to be optimized. Predictive analyses can also be used to identify potential bottlenecks or problems at an early stage and take appropriate measures to maximize the efficiency and availability of the system.

The key advantage of the EaaS model is that companies can access modern, high-performance facilities without having to make large capital investments or worry about long-term maintenance and spare parts procurement. It enables plant operators to optimize their financial obligations and focus their resources on their core business.

As maintenance and servicing are fully covered by GIG Karasek, operations become more efficient and budget gaps caused by repairs or production stoppages can be avoided. Furthermore, EaaS helps to mitigate the shortage of skilled workers by utilizing the expertise and resources of GIG Karasek. This takes the pressure off internal staff and allows companies to concentrate on their core competencies and critical tasks.

The combination of Industry 4.0 technologies, usage-based billing and customized financing solutions offers plant operators greater flexibility, transparent cost structures, and optimal use of resources. Efficiency and competitiveness are increased, while financial burdens and operational risk are minimized. Similar to conventional leasing, the plant operator always works with the latest generation of devices and avoids tying up capital over the long term. Furthermore, no accounting is required for this financing model.

Condition monitoring refers to the continuous monitoring and evaluation of the condition of machinery and equipment in order to detect potential problems at an early stage and take preventive action. Various parameters such as vibrations, temperatures, pressure conditions, noises, or electrical signals are continuously recorded and analyzed.

Condition monitoring immediately detects changes in the operating behavior or the changed condition of components or devices. As soon as critical limit values (e.g. defined values for vibrations, speeds, pressure, or temperature) are exceeded, an alarm is triggered. Potential malfunctions, signs of wear, or defects can thus be identified at an early stage and appropriate measures taken.

This proactive approach enables the avoidance of failures, the prevention of potential damage, and the early identification of trends that indicate potential for improvement.

Predictive maintenance is a service for effective maintenance of equipment and machinery that uses algorithms and machine learning models to analyze data and make predictions. Based on these predictions, the optimal time for maintenance measures can be determined.

Compared to condition monitoring, which mainly monitors current conditions, predictive maintenance relies on analyzing historical data to predict future problems. This allows maintenance activities to be planned and executed before a failure occurs, resulting in higher plant availability, lower maintenance costs and more efficient use of resources.

For example, if a rolling bearing is nearing the end of its service life, the system can automatically trigger an order or generate a reminder to have the corresponding spare part available in time.

If the customer sources the spare part directly from GIG Karasek, the ordering process is automated by our EAP (Enterprise Asset Planning) integration. We have all the relevant data, such as order numbers and model numbers, to facilitate the ordering process. In this way, an efficient and automated system is created.

GIG Karasek provides state-of-the-art equipment that is optimally adjusted to the respective requirements of the application. However, the general conditions in industrial production are subject to constant change. For example, the material supplied (feed) or the requirements for the end product may change. The optimization of the system must be adjusted accordingly, which often cannot be implemented consistently and efficiently in practice.

OaaS (Optimization as a Service) provides valuable insights into a system’s operational behavior and characteristics. It is based on a combination of data analysis and joint meetings to identify optimization potential and make appropriate adjustments in a targeted manner. The aim again is to keep the system’s performance, efficiency, and yield at the highest possible level – even when requirements change – while reducing costs.

We look forward to accompanying you on your way to a successful future.

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