Pennies Can Add Up To Profitability
In order to meet the demands of regional, national and global competition, many companies have looked to streamline their operations by reducing costs in ways that maintain or boost their production rates with minimal changes to their labor pool – in short, they want to improve their efficiency.
With this as their guiding principle, many companies have looked to the types of costs that alone might seem minor, but that can have a very significant impact on a company’s profitability when added together over the course of a year or more.
Two examples of these costs are utilities and equipment repair.
Utility costs are often considered an unavoidable and unchangeable part doing business. They may indeed be unavoidable in a welding environment, but they are far from unchangeable.
Although it may pale in comparison to the cost of labor, the cost of electricity does make up an important part of the overall welding expense and chipping away at it can yield meaningful savings for the efficiently run organization.
Another such cost is equipment maintenance and repair. Replacing a single fan motor or mode switch might not seem like a back-breaking expense, but when a company has dozens or even hundreds of welders, these types of unexpected expenses can add up very quickly.
Has your company looked to reduce its electricity or equipment repair costs? What have the results been? What other types of costs seem minor by themselves but add up to significant expenses over time? Please share your thoughts in a comment below.
Read about how piping and tank fabricator Team Industries saved $303 per welder, per year on their electric bill, received a one-time $7,300 rebate from its electric company and reduced its maintenance costs through the use of inverter technology.
Average (Not Rated)
September 4th, 2007 at 7:34 pm
miller knows how to save pennies I bought a new big blue air -pak and sent it to a shop to get it lettered .huot inc.