A Double Bottom Line: Minimal Costs, Maximal Productivity

After a series of very difficult quarters all in a row, the North American manufacturing sector is finally enjoying a bit of an economic rebound. However, with the cost of freight, raw materials, and other related expenses perpetually on the rise, the recovery may prove to be short lived. Fortunately, there are ways that managers of manufacturing companies can keep the overall cost of running their business fairly low. Plus, many of these cost cutting maneuvers can also help to boost company productivity. Read on for three ideas to keep spending down and output up.

1. Send and Receive Trucks As Full As Possible

Get in the habit of checking all shipments going out and coming in to ensure that they’re not LTL, or Less Than Truckload. Full trucks means fewer trips, less money spent on fuel, and saved time. And, because shipping resources are being used as efficiently as possible, overall company productivity doesn’t suffer.

2. Don’t Overpay For Raw Materials

Sooner or later, the time will come when you’ll need to restock. That part is unavoidable. However, you can avoid paying top dollar for your materials by paying close and continual attention to the markets and buying when there’s a downward trend in prices. Plus, if you have storage available, buy as much as your budget will allow when prices are unusually low. Even if you’re not due for more materials, you’ll need them eventually. Buying substantial amounts at low prices will help hedge against price spikes that can seem to drag on.

While this strategy may not seem to have much to do with productivity, keep in mind that happy employees tend to be productive employees. Consider your team members who manage your company’s financials and the stress that goes along with going over budget on purchases. When there’s no stress over buying at the last minute and paying too much, productivity is likely to stay high.

3. Keep Hydraulic Machinery and All Equipment Well-Maintained

It may seem like a good cost cutting move to scale back on maintenance. However, this is a mistake. Not doing routine maintenance on all your equipment can cause bigger and more expensive problems down the road. Also, manufacturing companies rely on their heavy machinery for almost all of their company’s productivity. When equipment isn’t working because it’s being repaired or waiting on parts, companies lose both time and money. Additionally, routine maintenance helps equipment to last longer, which means fewer replacement costs.

Call On Preci-Shear For Your Hydraulic Cutting Needs

Preci-Shear is your Canadian metal shear specialist. We manufacture hydraulic guillotine shearing machines and can provide replacement parts for your company’s hydraulic cutters. Give us a call at 1-888-331-6045 to see how we can help address your equipment needs.