Overhead costs are one considered for every job and estimate. These costs can be decreased simply by changing processes in specific departments or across the entire company. Here are a few ways for your company to significantly reduce overhead costs.
- Review and analyze your vehicle fleet
When you step back and analyze your vehicle fleet. When doing so, you may see vehicles that aren’t being used to maximum efficiency or vehicles that aren’t being used at all. Often you can maximize the use of one vehicle and get rid of another. When analyzing your fleet, you may find ways to maximize fuel efficiency or areas where old vehicles can be replaced with their newer more efficient models.
- Replace old technology with newer technology
Newer technology is going to be more efficient than older technology. Not only will it save you money in the long run but it can significantly increase employee productivity by saving time on individual tasks allowing more work to be done at a time. A tech option that would save your company money is using free cloud services to keep everyone connected. This is a simple way to share files and information without paying for services.
- Employ energy-efficient practices
The three R’s, reduce, reuse, and recycle, are a huge way to cut costs. By eliminating waste, your company is reducing overhead costs in multiple areas. Implementing energy-efficient practices will save you time, labor, and resources. Not only will this save money, but by being an energy-efficient company, customers are more likely to want to hire you.
- Look at narrowing supplier base and create negotiated contracts
Often finding a supplier or subcontractor means looking for the best price. Instead of having a large range of contacts to call, try minimizing your partners and finding a few solid partners to create contracts that will help both of you in the long run.
- Invest in an advanced change order process
Sometimes the most expensive costs on a job can be the cost of project changes. If you have an advanced change order process and your subcontractors know the rules they must follow to change something in the plans, allowing you to maintain control of what you spend on changes and what changes are made.
- Make the move to paperless
Paper costs are bigger than you think. On top of not only physical paper, you have to have somewhere to store your records, ink, printers, and more. Not only are you saving money by switching to paperless records but time by scanning and emailing documents from one person to another as well as reducing the amount of lost or missing documents.
Midsouth Mechanical has been doing business for over 25 years. We offer our industrial clients efficient and cost-effective fabrication, modification, and repair of industrial equipment. From preventive plant maintenance, designing, installing and aligning machines, our exceptional skill and craftsmanship set us apart from the competition. Our number one priority day to day is safety. To see our published weekly Toolbox Talks, follow us on LinkedIn, Twitter, or Facebook.