Labor, equipment, commercial space, repairs, and hydro are just a few of the costs associated with maintaining and operating a factory or any other industrial business.
The good news is that there are various ways that industrial businesses can cut costs in these different areas without sacrificing quality or efficiency. The reality is that there are choices business owners can make and habits they can adapt to reduce their monthly costs.
If you are starting to question the reasoning and value behind your commercial expenses, get more resources to identify the areas where you may be over-spending unnecessarily. Consider these tips for cutting costs that won’t sacrifice the quality of your production:
Selling Equipment
If you are simply sending your used equipment to a landfill or leaving it to collect dust in storage space, consider the ways that you can earn a profit from it. The reality is that even though it may have been time for you to upgrade or replace your old equipment, the equipment can still be put to use by someone else.
You can sell your equipment like used CMMs to a retailer who will buy and refurbish your old equipment so that another commercial business can make use of it. Selling your equipment will help you be less wasteful, and you will be able to put the profits from the sale towards purchasing new equipment or any other costs.
Buying Used
You don’t always need to buy your equipment brand new. A lot of used equipment can work just as well as new machinery, and for a portion of the price. When you purchase from used equipment retailer you spend a portion of the price, for similar (if not equal) quality.
The reality is that when these retailers buy and sell used equipment, they refurbish the equipment with necessary upgrades and provide a warranty for peace of mind. Oftentimes, used CMMs and other types of factory equipment can work just like new without the price tag of a new machine.
Adopt Environmentally Friendly Practices
The reality is that using less energy and being less wasteful will protect both the environment and your commercial business’s wallet. Energy-draining practices will only skyrocket your hydro bills while conserving energy will help you to reduce the size of these bills. According to the U.S. Energy Information Administration (EIA), the industrial sector uses 54 per cent of the world’s total delivered energy — this is more than any other end-use industry.
Areas where you can reduce energy use includes:
- Heating: Heating accounts for over a third of the energy used by manufacturing businesses. According to the S. Department of Energy, integrating energy-saving practices into production can reduce manufacturers’ process heating costs by up to 15 per cent. If your production involves heating large volumes of water, consider using a solar water heating system to preheat your water and save on heating expenses.
- Equipment: Machinery utilizes a lot of fuel and produces significant gas, which is why it’s a good idea to opt for energy-efficient appliances. In fact, machines generate the majority of the energy used in the industrial industry. The EIA revealed back in 2013 that machines account for 10% of the energy used in manufacturing, and this number continues to increase.
Upgrades and maintenance can ensure that your machinery doesn’t need to work harder and drain more energy than it needs to. It is also worth mentioning that there are peak times when energy is more expensive. Businesses can consider running machinery at off times to cut energy costs.
Automate Processes
When you automate your process using precise equipment like CMMs, you reduce the need for manual interference in production lines. By automating processes, you can cut costs on labor and repairs required based on human error. This can also help you to relocate your resources to apply them towards other areas of the business.
Improve Product Quality
The main goal of every manufacturing business is to produce quality products that people will want to invest in. When you utilize intricate machinery like CMMs for precise and accurate production, you improve the overall quality of your product which will help improve your return on investment.
