Machinery Co-operative

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A machinery cooperative is a business where the workers own shares of the capital equipment used for manufacturing, processing, or marketing goods, and receive benefits in proportion to their usage.

A typical example might be a group of farmers who need the service of a piece of expensive farm equipment. They all need the equipment but only for small periods of time each. Rather than each buy the equipment, they form a co-op, buy one, and make arrangements to share it between them.

In general, machinery sharing cooperatives provide access to large industrial machines, shared labor, joint purchasing of inputs, and pooled marketing. The group is organized as a limited liability company (LLC) under a cooperative corporation organizational form. A set of bylaws are agreed on and a board of directors elected. Net surplus after operating expenses are deducted is distributed to members, or retained for future capital needs.

The tools are grouped into pools, such as a food processing pool, a metal working pool, or a plastics pool. This allows members to buy into the set of machines they're most likely to need, or to join the co-op in a limited basis and expand their use later as they see the value by joining additional pools. To join a machinery co-operative, the member is required to purchase a share in at least one machine pool.

Labor sharing can allow members with specialized skills to trade their labor (perhaps using Bridgetown Bucks?)

References