How to Build a Business Case for Food Processing Machinery

A new food processing machine can look compelling on a specification sheet and still be the wrong investment for the business.

The real question is not simply whether a machine can achieve a stated output or offer an attractive payback period. It is whether it will improve the process enough to justify the capital cost, installation work, operational change and ongoing commitment that come with it.

For food processors, a credible business case is not a document prepared to support a machine that has already been chosen. It is a disciplined comparison between the current process, the proposed process and the cost of continuing as things are.

The machine itself is not the investment case. The improvement in the production process is the investment case.

What should a business case for food processing machinery include

A machinery business case should explain three things clearly:

  1. What production problem needs to be solved?
  2. What measurable improvement is realistically expected?
  3. What will it cost to achieve that improvement?

That means looking beyond equipment price and headline capacity. A sound assessment considers labour, yield, throughput, product quality, operational resilience, installation requirements, service support and cash flow.

Simple payback remains useful because it is easy to understand. However, it should sit alongside a broader view of risk, implementation and the consequences of getting the decision wrong.

The best place to start is with the issues affecting the operation.

They might include:

  • Excessive reliance on a small number of experienced operators
  • Inconsistent portion size, weight or presentation
  • Slow manual handling or double handling
  • Rework, trim loss or product damage
  • Overtime that has become routine
  • A bottleneck preventing the business from increasing output
  • Difficulty meeting a customer specification consistently
  • A process that cannot reliably support a new product range or shift pattern

Different problems can lead to very different machinery solutions, even where the product is similar.

For example, a processor experiencing labour pressure in portioning may not necessarily need the fastest available cutter. The better solution may be one that improves product control, reduces manual adjustment, fits the available floor space and works reliably with the existing packing process.

The objective should be to define the operational constraint first, then assess which process change or machinery option is most likely to address it.

Before a target machine has been selected or trialled, it is difficult to forecast exact labour savings, yield improvement or additional output with confidence.

At this stage, the priority is to establish a practical baseline for the current process.

Useful starting information includes:

  • How many people are involved in the task, by shift or production run?
  • How long does the task take under normal operating conditions?
  • Where do queues, waiting time, rework or double handling occur?
  • How often is overtime required, and in which parts of the process?
  • What variation is seen in portion weight, product presentation, output or pack consistency?
  • Where are experienced operators needed to maintain the required result?
  • Is the current process limiting the ability to accept more work, add a shift or meet a customer requirement?

This does not need to become a complex time-and-motion study. In many cases, production records, supervisor knowledge, operator input and a few representative observations will provide a useful starting point.

The important point is to understand the current process well enough to identify what needs to improve. The expected improvement can then be assessed through a machinery trial, process review or demonstration using representative product.

Machinery investments rarely create value through one factor alone.

A project may improve the business through a combination of:

  • Reduced overtime or agency labour
  • Less reliance on difficult-to-replace skilled operators
  • Better use of existing staff
  • Higher output from the same operating hours
  • Reduced giveaway, trim loss or rework
  • More consistent product quality and presentation
  • Faster or more reliable changeovers
  • Lower manual-handling exposure
  • Capacity to take on additional business without adding labour in direct proportion
  • Reduced operational disruption when key people are unavailable

The strongest business cases usually identify several sources of value rather than relying entirely on labour reduction.

For many food processors, labour savings are important, but they may not be the largest long-term benefit. Yield protection, improved consistency, reduced overtime and the ability to grow output without creating another labour-intensive process can be equally significant.

A labour-saving project does not need to result in redundancies to create commercial value.

Labour benefits usually fall into three categories:

Type of benefit

What it means

Cash-releasing

A cost genuinely reduces, such as overtime, agency labour or an unfilled replacement position.

Capacity-releasing

Employees are freed up to perform more productive work, support another line or help increase output.

Risk-reducing

The process becomes less dependent on a few experienced operators, difficult shifts or manual workarounds.

All three can be valuable, but they should not be treated as the same thing.

For example, reducing a task from four operators to two may not immediately reduce payroll. However, it may allow the business to avoid additional recruitment, reduce overtime, improve roster flexibility or redeploy experienced staff into higher-value work.

A credible business case should identify which labour benefits are genuinely expected and avoid assuming that every minute saved becomes an immediate cash saving.

Yield is often one of the most valuable parts of the business case, particularly where the raw material is expensive.

Small variations in portion weight, trim, presentation or handling can add up across thousands of units. The effect may not be obvious on an individual pack, but it becomes significant over a week, month or year.

Areas worth assessing include:

  • Product consistently cut above target weight
  • Manual variation between operators or shifts
  • Excessive trim or end pieces
  • Rework caused by uneven portions or poor presentation
  • Product damage during handling or transfer
  • Additional product added to protect against underweight packs
  • Losses created by inaccurate grading, filling or portioning

The key is to separate unavoidable product variation from loss that may be improved through a better process.

For portion-controlled products, technologies such as cut-to-weight, cut-to-volume, grading, checkweighing and yield-optimised cutting may help improve consistency while maintaining product presentation. The expected result should always be tested with representative product rather than based solely on generic performance figures.

A machine’s stated maximum output is only one part of real production performance.

Actual line capacity can be constrained by:

  • Product preparation before the machine
  • Infeed and loading requirements
  • Operator availability
  • Product shape, temperature and natural variation
  • Changeover frequency
  • Cleaning time
  • Downstream packing, handling or labelling capacity
  • Product accumulation between process stages
  • Maintenance access and minor stoppages

A faster machine can improve one part of the process while exposing a bottleneck elsewhere.

For example, increasing cutting speed may not increase packed output if the packing team, checkweigher or transfer system cannot keep up. Similarly, automating filling may not deliver the expected benefit if casing preparation, hanging or downstream handling remains labour-intensive.

This is why the investment case should consider the whole process, not just the machine in isolation.

The equipment price is only one component of the investment.

A complete project cost should consider:

  • Machine purchase price
  • Freight, delivery and installation
  • Electrical, air, water, drainage or refrigeration requirements
  • Floor preparation, access changes or guarding
  • Integration with existing equipment
  • Conveying, handling or downstream packaging changes
  • Commissioning and operator training
  • Initial spare parts and consumables
  • Production disruption during installation
  • Ongoing maintenance and service requirements

A lower-cost machine is not necessarily the lower-cost project.

A solution that requires significant site modification, creates difficult cleaning requirements, lacks suitable local support or does not integrate well with existing equipment may carry a higher total cost than the original quotation suggests.

Simple payback remains a useful starting point:

Total project cost ÷ expected annual financial benefit = estimated payback period

However, the calculation is only as reliable as the assumptions behind it.

For a meaningful investment decision, the business case should include:

  • Total installed project cost
  • Expected annual labour, yield and throughput benefits
  • Expected operating costs
  • Simple payback period
  • Monthly cash-flow impact under cash purchase, finance or lease arrangements
  • Expected useful life of the equipment
  • Sensitivity to lower-than-expected benefits

For larger projects, it is often useful to consider three cases:

Scenario

Assumption

Base case

Conservative, realistic benefits based on current information and trial evidence.

Upside case

Benefits if volumes, labour savings or yield performance are better than expected.

Downside case

Benefits if volumes are lower, implementation takes longer or expected improvements are only partly achieved.

The key question is not simply, “How fast does it pay back?”

It is also:

“What does this project do to cash flow, production risk and the business’s ability to grow over the next few years?”

A product trial replaces assumptions with evidence.

Using adequate quantities of representative product, a trial can help assess:

  • Actual output under realistic operating conditions
  • Product quality, appearance and presentation
  • Yield, trim and portion consistency
  • Labour requirements around the machine
  • Product handling and transfer
  • Changeover and cleaning considerations
  • Suitability of the proposed machine configuration
  • Whether a different model, process or staged investment would be more appropriate

A trial is not simply a sales demonstration. It is a form of commercial due diligence.

It may confirm that the proposed solution is suitable. It may show that another configuration would deliver a better result. It may also identify that the underlying issue is elsewhere in the line.

That is a valuable outcome before a major capital commitment is made.

Every investment decision should also consider the alternative.

Maintaining the current process may appear to have no capital cost, but it can still carry ongoing commercial consequences:

  • Continuing overtime or agency labour
  • Greater dependence on scarce operator skills
  • Inconsistent yield or product quality
  • Difficulty increasing production capacity
  • Higher risk of missed customer opportunities
  • More manual handling and process workarounds
  • A growing maintenance burden on ageing equipment

The cost of doing nothing does not always justify investment. However, it should be assessed honestly alongside the cost and risk of change.

A good machinery investment should deliver more than a faster process or an impressive specification.

It should address a defined production constraint, create measurable commercial value and leave the business with a process it can operate, clean, maintain and support with confidence.

For many food processors, the best decision is not the largest or most automated machine. It is the solution that improves yield, labour efficiency, capacity and consistency enough to justify the investment under realistic operating conditions.

Talk to CBS Foodtech about the process you want to improve. We can help define the production issue, assess suitable machinery options, arrange a representative product trial and build a practical view of the expected labour, yield and capacity outcomes before you commit.

How to Reduce Labour Dependency in Food Processing

Most food processors do not have a labour problem because they employ too many people. They have a labour dependency problem because too much production knowledge, quality control and output depends on a small number of experienced operators.

When those people are unavailable, move shifts, retire or are difficult to replace, the business can experience inconsistent product quality, yield loss, reduced throughput and higher overtime. The answer is not always a fully automated production line. Often, a well-chosen machine or process change can reduce the pressure on key staff while making production more repeatable and easier to scale.

For many food processors, the objective is not to remove experienced people from the factory. It is to make their knowledge less difficult to replace and ensure the business can produce consistent results every day, across every shift.

What does labour dependency mean in food processing

Labour dependency occurs when production quality, output, yield or food safety relies heavily on individual operators or a small number of experienced employees.

This is different from simply having a high labour cost. A production line may employ many people, but still depend on one or two experienced operators who know how to set up equipment, judge product quality, portion accurately, manage difficult changeovers or recover the line when something goes wrong.

Common signs of labour dependency include:

  • Output changes depending on who is operating the line.
  • Only one or two people can reliably perform a critical task.
  • New staff take a long time to become productive.
  • Overtime increases when experienced operators are unavailable.
  • Product quality, portion weights or yield vary between shifts.
  • Supervisors are constantly needed to correct problems or maintain standards.

Labour dependency is therefore an operational risk as well as a staffing issue. It can affect profitability, customer consistency, workplace safety and the business’s ability to grow.

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Food processors are facing ongoing pressure from labour availability, rising labour costs, employee turnover, absenteeism, seasonal demand and tighter customer expectations.

Many successful family-owned processors have grown through practical experience and long-serving staff. That knowledge is valuable, but it can become concentrated in a small group of people. When one of those people leaves, is unavailable or moves to another role, the business can quickly discover how much of its process depended on individual judgement and experience.

Labour dependency can also restrict growth. A processor may have demand for more product but be unable to increase output because the process depends on skilled people who are difficult to recruit or train.

The hidden costs can include:

  • Variation in product quality between shifts.
  • Increased rework, waste and giveaway.
  • Slower changeovers and production delays.
  • Greater manual-handling exposure.
  • More overtime and supervision.
  • Production interruptions when key staff are unavailable.
  • Difficulty introducing new products or increasing capacity.

Reducing labour dependency helps a processor build a more stable and scalable operation. It allows experienced people to focus on higher-value work rather than constantly repeating manual tasks or correcting avoidable variation.

The best starting point is not always the area with the most employees. It is usually the area where operator skill has the greatest effect on yield, quality, output or safety.

A useful question to ask is:

If our best operator was unavailable next week, where would production slow down or become inconsistent?

Common areas of opportunity include:

  • Portion cutting, slicing and dicing.
  • Filling, linking and hanging.
  • Mincing, mixing and forming.
  • Product loading, transfer and handling.
  • Packing and checkweighing.
  • Washing, crate handling and cleaning.

Look for repeated manual actions, double handling, awkward lifting, frequent rework and tasks where an experienced operator is continually compensating for product or process variation.

For example, a processor may have skilled staff manually portioning product to meet a customer specification. The task may appear manageable, but variations in product size, temperature and shape can create giveaway, inconsistent pack weights and significant reliance on individual knife skills. A suitable portion cutting or grading system may reduce that dependence while improving consistency and yield.

In another application, a smallgoods processor may have several people manually filling, linking or handling product. A filling and hanging system may reduce repetitive work, improve repeatability and allow experienced staff to focus on quality, setup and line flow.

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The best food processing machinery does not simply replace people. It removes repetitive, physically demanding or highly variable tasks so operators can focus on setup, quality, product flow and exception handling.

Automation works best when it supports experienced operators rather than trying to remove them from the process entirely.

Examples include:

  • A portion cutter can reduce reliance on manual knife skills while producing more consistent portions.
  • A filling and hanging system can reduce repetitive manual handling in smallgoods production.
  • A slicer or dicer can deliver repeatable product dimensions that are difficult to maintain manually at higher volumes.
  • A washer or handling system can reduce physically demanding crate and product movement.
  • A packing or transfer solution can reduce double handling and improve line flow.

Operators remain central to successful production. They still load product, monitor performance, manage changeovers, inspect output and respond when product variation or process conditions change.

The objective is to make the process easier to operate consistently. Good machinery should help a less experienced operator achieve a more repeatable result, while allowing experienced staff to spend more time on quality, planning, training and improvement.

Automation should always be selected around the real workflow. A machine that looks advanced but does not suit the product, available space, cleaning process or downstream packing operation may simply move the bottleneck rather than solve it.

Labour-saving projects often create benefits beyond reducing the number of people required for a task.

A more controlled process can improve portion accuracy, reduce giveaway, minimise trim loss, reduce rejected packs, lower rework and improve consistency between shifts. These improvements can be particularly valuable where raw material costs are high or customer specifications are tight.

For example, a portion cutting system may reduce the labour needed to manually cut product, but its value can extend beyond labour saving. If it produces portions closer to a target weight, it may also reduce overfill and improve the use of valuable raw material.

A good business case should consider:

  • Labour hours and overtime.
  • Yield and giveaway.
  • Throughput and available capacity.
  • Product consistency.
  • Rework and waste.
  • Manual handling and safety.
  • Training time.
  • Dependence on specialist skill.
  • The ability to redeploy staff into more valuable work.

The best capital projects often improve several areas at once. A machine may not eliminate a role, but it may allow the same team to process more product, reduce overtime, improve consistency or avoid the need to recruit additional staff as production grows.

Not every manual process should be automated.

Some low-volume, highly variable or specialist products may still be best handled manually. The goal is not automation for its own sake. The goal is to improve the areas where manual work creates a clear constraint, risk or inconsistency.

Before investing in food processing automation, ask:

  • Is the task repetitive?
  • Does it create a production bottleneck?
  • Does it rely on scarce operator skill?
  • Is yield or quality inconsistent?
  • Is there a manual-handling or safety issue?
  • Is the production volume high enough to justify equipment?
  • Can the product be presented to the machine consistently?
  • Is there enough factory space, utilities and downstream capacity?
  • Will the machine improve the whole process rather than simply move the bottleneck?

The answer may be a semi-automated machine, a standalone piece of equipment, improved product handling, a line change or additional operator training. It does not always need to be a complete automated line.

For many medium-sized processors, staged improvement is the most practical approach. Solve the highest-value bottleneck first, measure the result, then review the next constraint in the process.

The return on labour-saving machinery should be calculated by comparing the current process with the proposed process using realistic operating conditions.

The calculation should not rely only on a machine’s theoretical maximum speed. It should reflect actual loading, product handling, changeovers, cleaning, operator requirements and downstream packing.

Key inputs usually include:

  • Number of operators currently required.
  • Labour cost and overtime.
  • Hours and shifts operated.
  • Current and target throughput.
  • Yield, giveaway, waste and rework.
  • Cleaning and changeover time.
  • Expected maintenance and operating costs.
  • Equipment cost, installation and finance assumptions.

Reduced labour dependency can create value even when staff are redeployed rather than removed. A processor may use the same people to increase output, improve quality, reduce overtime or avoid future recruitment pressure.

A practical payback assessment should consider the full business outcome. Labour saving may be the most visible benefit, but yield improvement, better product consistency and increased capacity can often be equally important.

Where possible, use product-trial results to support the assumptions. Testing a machine with representative product can provide more reliable information about likely output, labour requirement, yield and product quality.

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The best first step is to review the current process before selecting a machine.

Document:

  • Product type and condition.
  • Current output and target output.
  • Number of operators by task.
  • Overtime and recruitment difficulty.
  • Yield, giveaway, rework and quality concerns.
  • Factory layout, available space and utilities.
  • The point in the process where experienced staff make the greatest difference.
  • The business outcome you want to achieve.

This information helps identify whether the immediate opportunity is in portioning, filling, handling, washing, packing or another process stage.

You do not need to know the exact equipment solution before starting the conversation. In many cases, the right first step is a process review or product trial that clarifies the problem and helps compare the available options.

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Food processing businesses are built on practical experience. The goal of labour-saving machinery is not to remove that experience from the factory. It is to make the best parts of it more repeatable, easier to train and less dependent on a small number of people.

A well-chosen improvement can reduce manual handling, protect yield, improve consistency and create capacity for growth without requiring a complete factory rebuild.

Talk to CBS Foodtech about the process creating the greatest labour pressure in your business. We can help assess your product, workflow and production target, then identify whether a machinery trial, process review or targeted equipment upgrade is the best next step.

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Why You Should Test Food Processing Machinery With Real Product Before Making a Capital Purchase

Buying a new food processing machine is a major decision. The equipment may need to improve labour efficiency, increase output, protect yield, meet tighter customer specifications and fit into an already busy factory.

But machinery cannot be properly assessed from a brochure, video or maximum-speed figure alone. Your product has its own size, temperature, texture, fat content, shape, handling requirements and finished-product expectations. Testing machinery with real product is one of the most practical ways to confirm whether a proposed solution will work in your process before you commit to a capital purchase.

For many processors, a well-planned product trial turns a difficult machinery decision into an evidence-based investment decision.

Why is machinery testing important before buying food processing equipment

Food processing machinery testing is important because the same machine can perform differently depending on the product being processed and the way the production line operates.

Two products that appear similar may behave very differently during portioning, slicing, dicing, filling, linking, hanging, tumbling, smoking or packing. Product temperature, firmness, fat content, bone content, dimensions, casing type and presentation requirements can all influence the result.

A machinery trial gives you an opportunity to check whether the equipment is suitable for your actual application rather than relying on assumptions. It can help answer practical questions such as:

  • Can the machine achieve the required portion, cut, fill weight or product presentation?
  • Can it handle the target volume at a realistic production rate?
  • Does it reduce manual handling or dependence on skilled operators?
  • Does it improve consistency, yield or product appearance?
  • Will the machine fit into the wider production process, including loading, discharge, packing and cleaning?

The aim is not simply to see the machine running. The aim is to see whether it can produce the result your business needs.

A useful machinery demonstration should assess the complete process, not just the machine’s headline speed.

Start with the result that matters most to your business. That may be more accurate portions, reduced giveaway, increased throughput, fewer manual handling steps, improved sausage presentation, more consistent slices, cleaner dice, faster changeovers or better utilisation of skilled labour.

During a trial, assess the following areas:

  • Product quality: Does the finished product meet your visual, weight, size and customer requirements?
  • Throughput: What output can be achieved with realistic loading, handling and operator involvement?
  • Yield and waste: Does the process reduce giveaway, trimming loss, rework or product damage?
  • Labour requirement: How many people are needed to load, operate, inspect and pack the product?
  • Changeover and cleaning: How practical is the machine when moving between products, programs or shifts?
  • Ease of operation: Can your team use the machine confidently after training?
  • Process flow: Does the machine improve the line, or does it create a new bottleneck upstream or downstream?

The fastest machine is not always the most productive solution. A machine with a very high theoretical speed may still be limited by product preparation, manual loading, packing, cleaning or changeover time. A realistic trial helps identify the result that matters: reliable output from the whole process.

The more accurately a supplier understands the product and production target before the trial, the more valuable the demonstration will be.

Before testing food processing machinery, provide representative information about:

  • Product type and intended finished product
  • Product dimensions, shape and weight range
  • Product temperature and condition, such as fresh, chilled, tempered, crust frozen or frozen
  • Whether the product is bone-in, boneless, cased, irregular or highly variable
  • Current production method and known bottlenecks
  • Current and target production volume
  • Required portion weight, slice thickness, dice size, fill weight or presentation standard
  • Packaging format and downstream handling requirements
  • Product mix and expected changeover frequency
  • Labour issue, yield concern or quality problem you are trying to solve

Bring adequate quantities of representative product wherever possible. A small sample or one that does not reflect normal production conditions can produce misleading results. The product used for testing should be as close as practical to the product your operators will run every day.

It is also helpful to explain what has not worked in the past. That may include inconsistent manual portioning, difficult product handling, labour shortages, poor slicing performance, excessive giveaway or machinery that was not suited to changing product sizes.

Testing reduces capital equipment risk because it gives you practical evidence before the order is placed.

For a family-owned food processor, the wrong machine can be expensive in more ways than one. It may underperform, require more labour than expected, create product-quality issues, be difficult to clean, fail to fit the available space or simply not suit the product range. It can also create disruption and frustration for the people who have to operate it.

A machine trial allows you to identify potential problems early. It may show that a different model, feed system, attachment, tooling configuration or line layout would be more appropriate. In some cases, it may confirm that a semi-automated process is a better first step than a larger fully automated line.

Testing also gives decision-makers something more useful than a sales claim. It provides observations that can be discussed internally with owners, production managers, maintenance teams and finance staff.

Instead of saying, “This machine should improve our process,” you can say, “We tested our product, reviewed the output and have a clearer view of the likely labour, yield and production impact.”

No. Machine speed is important, but it is only one part of a successful food processing equipment decision.

The best machine for your business is the one that delivers the strongest overall result for your product, staff and factory workflow. That may mean consistent portions at a sustainable output, lower giveaway, easier cleaning, fewer manual handling steps or more reliable operation across multiple shifts.

When comparing options, look beyond maximum speed and consider:

  • Product suitability across your normal product range
  • Actual output after loading, changeovers and packing are included
  • Yield, giveaway and product-quality results
  • Cleaning access and hygiene requirements
  • Operator skill and training requirements
  • Changeover time between products or programs
  • Floor-space, utilities and access requirements
  • Availability of technical support, servicing and spare parts
  • Installation, commissioning and long-term maintenance needs

A machine should be selected for the job it needs to do in your factory, not for the most impressive figure on a specification sheet.

Yes. A practical machinery trial can provide the information needed to build a more credible business case for a capital purchase.

The purpose of a business case is to compare the current process with the proposed process and assess the likely commercial impact. Depending on the application, this may include labour requirements, production capacity, yield, giveaway, rework, waste, cleaning time and product consistency.

For example, a processor may be able to compare:

  • Current manual labour required per shift
  • Expected labour requirement with the new process
  • Current yield or giveaway level
  • Potential improvement in portion accuracy or product utilisation
  • Current and expected output rates
  • Estimated value of reduced waste, rework or overtime
  • Investment cost, finance assumptions and expected payback period

The trial does not need to produce a perfect forecast. Its purpose is to replace broad assumptions with better evidence.

For a business with several decision-makers, this is especially useful. It helps turn the conversation away from “Should we buy this machine?” and towards “Does this process improvement justify the investment?”

A successful trial is usually the start of the specification process, not the end.

Once the product has been tested and the likely benefits are understood, the next step is to confirm the complete solution. This may include selecting the right machine model, accessories, tooling, infeed or discharge arrangement, and any integration required with existing equipment.

The next discussion should cover:

  • Final machine configuration and application suitability
  • Expected production output and operating assumptions
  • Factory layout, utilities and access requirements
  • Product handling before and after the machine
  • Installation timing and commissioning requirements
  • Operator training and changeover procedures
  • Preventative maintenance, servicing and spare-parts support
  • A business case or payback assessment where required

The most successful projects are not based on the machine alone. They are based on a clear understanding of the product, the process, the people who will operate it and the business outcome the investment needs to deliver.

The safest way to assess food processing machinery is to test it against a real production requirement.

You do not need to know the exact machine model before starting the conversation. Begin with the product you process, the issue you want to solve and the outcome you want to achieve. Whether the priority is labour reduction, yield improvement, higher throughput, product consistency or a new product line, a practical test can help identify the equipment and process options worth considering.

Contact CBS Foodtech to discuss your product and arrange an Applications Centre trial or machinery demonstration.