For manufacturing plants and other industrial facilities, finding ways to reduce facility expenses is an absolute must. After all, taking steps to reduce overhead doesn’t just lead to short-term benefits. It can also contribute to a company’s long-term goals and ensure that you are always able to operate in the black.
But how do you lower your current facilities management costs? There are a few key principles that can have a lasting impact on your business expenses. Here’s a closer look at three of the most effective cost management strategies for industrial facilities.
Lower Equipment Costs
Whether replacing outdated equipment or buying new machinery for a factory expansion, equipment purchases are a major facility expense. Though some pieces of equipment may only be available through speciality manufacturers, it is surprisingly easy to find used industrial equipment that delivers major cost savings. A wide variety of equipment can be purchased used, ranging from tanks and valves to lift tables and boilers.
In comparison to buying a completely new piece of machinery, buying used equipment can allow you to save hundreds or even thousands of dollars on a single purchase. Buying from a reputable dealer will give you confidence that the equipment will stand the test of time.
Taking care of regularly scheduled maintenance will also help you lower long-term costs. For most pieces of machinery, tune-ups and maintenance inspections should be performed at least once per year. By preventing deterioration in performance and unexpected repairs, these simple safety checks can lead to big long-term savings.
Focus on Sustainability
As previously mentioned, outdated equipment can easily drive up overhead costs for industrial and manufacturing facilities. This doesn’t merely refer to the equipment that is used for industrial processes, either. Even things that don’t appear to have a direct influence on manufacturing costs can make a big difference for your profit margins.
Prime examples of this are your facility’s lighting and HVAC systems. New technology has led to the creation of more efficient systems than ever before. LED lights and advanced HVAC systems don’t merely consume less energy overall; they also provide superior performance over their older counterparts.
At first glance, facilities managers may be reluctant to invest in such upgrades because they may represent a significant expense. After all, replacing the lighting throughout your facility is rarely cheap! However, in these instances, it is best to look at the long-term potential for such upgrades. By reducing annual energy expenses, these upgrades will pay for themselves several times over in the years to come by helping your facility become more efficient.
Improvements for Employees
Investments that improve the employee experience also qualifies as short-term expenses with long-term savings. There are few things that can hurt your bottom line more than high employee turnover rates. As such, facilities managers should be proactive in finding ways to increase their employee retention.
Seemingly small actions can make a big difference. Upgrading the staff cafeteria to make it feel warm and inviting will make employees feel appreciated and cared for. Providing helpful training and learning experiences will enhance employees’ skills and help them work more productively.
Hiring and training new employees will be far more expensive than taking steps to keep your current group. Prioritizing employee satisfaction is always the best long-term approach.
As you better manage the overhead costs related to your industrial facility, your company will be able to increase its profit margins. Better yet, your team will be able to set aside more money for important tasks like marketing and other client outreach strategies that will directly impact the growth of your business. The more you do to reduce overhead expenses and increase your facility’s sustainability, the better prepared you will be for whatever changes your industry might face.