Reduce Labor Costs Without Cutting Back on Safety!

Reduce Labor Costs

As the price of production continues to rise, industrial manufacturers are looking for ways to reduce expenses where they can. One area of operations where leaders reduce labor costs.

As it accounts for a significant portion of an organization’s balance sheet, reducing labor costs is often an essential step in eliminating superfluous spending. Below are a few approaches manufacturing heads can take to help save on labor expenditures while still maintaining a high level of safety.

First things first, modernizing the facilities can go a long way in ameliorating a budget. Take automation, for example. Although it is often thought of as replacing workers, most forms of automation serve to augment labor by eliminating rework, improving safety and keeping production on-time through a more streamlined process. 

Of course, there are forms of automated machinery available that can significantly reduce the number of employees by taking on repetitive tasks and heavy lifting. Implementing automation technology throughout the entire process like this has been shown to increase productivity and utilize materials more efficiently.

What’s more, as these systems perform with less variability than human workers, the result is greater product control and more consistent quality.

Infographic provided by Atlantic Pacific Equipment, Inc., an Industry Expert Scaffolding Supplier

Another technological advancement worth investing in is modern scheduling software. Overscheduling and overtime are prime sources of exorbitant labor costs. With predictive scheduling software, a facility can optimize its employee management using a system based on complex algorithms, eliminating excessive hours while still meeting demands. The result is an adequately staffed workforce with fewer hours going to waste.

Reducing labor costs could also come down to increasing efficiency throughout production. The thought behind this approach is to diminish the number of steps a product goes through before completion and ensure each step takes as little time as possible. One way to increase efficiency is to use the best tools available.

For instance, if the facility requires scaffolding, it pays to use a higher-quality option, such as a ringlock modular scaffold system. Employing advanced engineering, these models provide ease of handling, require lower maintenance and cut labor costs, all while meeting safety demands.

Boosting efficiency might also be done by investing in employee development. High turnover rates have a deep impact on a budget. As such, it’s vital to create an environment where team members feel safe, valued and respected.

A few actionable steps to raise employee morale include improving safety and wellness protocols, enhancing initial and ongoing training regimes and introducing incentive programs.

For further information on cutting labor costs without sacrificing on workplace safety, please see the accompanying resource.

Reduce Labor Costs article and permission to publish here provided by Torri Leek. Originally written for Supply Chain Game Changer and published on March 1, 2023.

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