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8 Tips to Reduce Labor Costs

May 17, 2023 9:17 AM by Tennant Company

Posted in Best Practices

8 Tips to Reduce Labor Costs

Manufacturing operations require a strategic approach to cost control and management. With ever-increasing market demands, ensuring that you operate cost effectively can be quite challenging. Fortunately, there are several tips and strategies you can use to reduce costs in your manufacturing facility without sacrificing quality or efficiency.

From optimizing materials handling processes to eliminating waste from production cycles, these 8 tips will show you exactly how to reduce your costs - so get ready for some actionable advice!

1. Provide Excellent Training

A well-trained workforce enhances productivity and reduces re-work. Establish a training plan for employees that includes both initial training to ensure they quickly get up to speed, and ongoing training to ensure employees stay current.

2. Invest in Innovative, Efficient Technology

We live in a world with constant change. Invest in new equipment, such as robotics and AI. Such as autonomous mobile robots for floor cleaning, that increases your employees’ efficiency. Innovative new technology and equipment can simplify and streamline manufacturing processes, and provide a quick return on investment.

3. Consolidate Products

Consolidating products used in the manufacturing process can simplify employee training, improve overall productivity and reduce labor costs. Buying larger quantities from a single supplier can also result in quantity discounts.

4. Change Your Process or Layout

When was the last time you reviewed your manufacturing process or layout to maximize productivity? Advances in technology and workforce skills might enable modifications that can boost productivity, optimize manufacturing space and reduce labor costs.

5. Use the Right Materials

Using the lowest price inputs might be costing you money. Substituting higher cost or higher quality raw materials may reduce manufacturing steps and increase line speed, justifying the higher cost.

6. Standardize Product Offerings

Offering customers multiple product options can drive sales, but are likely expensive and could be slowing down your entire operation. Standardizing and simplifying your product offerings can reduce expensive custom work and the labor-intensive steps they require.

7. Enhance Safety

Your employees are valued assets. Ensure you provide them with a clean, healthy, and safe work environment. Implementing best-in-class safety protocols can reduce the chance of accidents and costly workers compensation claims. Also, consider moving away from the traditional mop-and-bucket approach to cleaning smaller spaces and use a mechanized mop.

8. Sustainability

The global manufacturing industry is seeing tremendous upheaval and transformation due to increasing pressure from sustainability concerns. With this comes the challenge of finding an effective balance between economic and environmental interests that keep stakeholders and the environment safe.

Many facilities save money and increase productivity with cleaning equipment equipped with ec-H2O NanoClean® Technology. ec-H2O NanoClean® uses less water, operators have fewer empty-fill cycles. And, because there are no chemicals to buy, mix, or store, you can significantly reduce labor costs and simplify operations and maintenance.

When you’re feeling pressure to quickly increase production, paying overtime seems like a no-brainer, but overtime costs can quickly eat into profits. Reduce reliance on overtime by adding another line, temporary workers or new technology to increase your outputs while controlling costs.

Take a deeper dive into how you can increase production and lower labor costs at your facility with industrial cleaning solutions. Contact Tennant to learn more.


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