Yet, here is the eleventh tip that indicated the fact that by storing your field construction equipment, you will definitely reduce your expenses.
At first company, owners might not think this point would be that efficient.
Nevertheless, storing the field construction equipment includes placing all field construction equipment in a dry location. That way all elements of the field construction equipment can be protected.
So, you might consider storing your field construction equipment as the first step in the way of preventative maintenance.
Additionally, by storing your field construction equipment properly, you will make sure that it is away from moisture- which means that your company will spend less money on repairs.
Thereupon this tip brings you closer the importance of reducing the risk of corrosion, degradation or rust.
7. Staying Competitive Means Maximizing Efficiency and Minimizing Costs
All businesses around the world are fighting with the ongoing economic challenges. So, it means that the construction industry is no exception.
Yet, if construction companies want to stay competitive and to keep up with their operational process they will have to maximize their productivity while minimizing the costs.
This means the ability to monitor and coordinate work crews, whether on a single site or over multiple sites.
In a clear view it would go like this:
- Reacting quickly to last minute changes;
- Hearing clear voice messages even in the noisy environment of a busy construction site;
- Minimizing downtime by keeping your work crews safe;
Wehn we summarize this, we can see that it means maintaining instant contact with construction workers. That way you will be in the position to avoid material waste or construction mistakes.
Problems That Construction Companies Are Faced With In Managing Overhead Costs
Are the field construction expenses the only problems with which the construction companies are faced with when it comes to managing overhead costs?
Many construction companies besides experiencing field construction equipment expenses are as well experiencing problems in managing overheads.
Yet, the main problems that do cause overheads to construction companies are the following:
- It might be due to the cyclic nature of the overall construction industry in the USA;
- On the other hand, it might be due to different types of contracts that the company makes and that do require different resources and that produce different levels of overheads;
Overheads can become a real problem when they are too high.
That is because then the overheads can easily escalate. Yet, what construction companies can do in such situation is to be constantly focused on the overheads and to try to fluctuate the work volume widely.
Yet, not to forget the contractors that are not paying on time.
How Preventative Maintenance Can Reduce Expenses for Field Construction Equipment
If you want to reduce expenses with field construction equipment, and at the same time to keep your vehicles and equipment constantly running, then, in that case, you will have to pay special attention to preventative maintenance.
In general, preventative maintenance can help you reduce expenses with field construction because it will prevent costly repairs and will reduce your vehicles and equipment downtime. At the same time, a preventative maintenance can extend the useful life of your equipment.
Yet, keep in mind that preventative maintenance should be applied to all of your construction heavy equipment. So, it leads you to make your own company preventative maintenance program.
So, if you are performing the preventative maintenance in-house- then it is the best for you to have a dedicated person who is going to manage the field construction equipment maintenance program.
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In general, the maintenance program shall include telematics, owner’s manuals, and schedules.
Next step is developing an individualized maintenance schedule for each piece of field construction equipment. The reason behind this step is that the older construction equipment will require more maintenance than the new construction equipment.
Thereupon, you will have to train your operators to make a visual inspection of the equipment before every use.
Last, but not least, you can also try to perform scheduled maintenance on your equipment around your construction schedule.
Why are more and more construction companies aiming towards reducing expenses with field construction equipment? Is it the reason that they are only vaguely able to forecast their annual business volume? Or there are some other reasons?
To start with the first fact- unlike other industries, the construction industry is definitely unable to forecast its annual construction volume. Yet, it is due to the client base. And on the other hand client base provides profit performance for construction companies.
So, this is highly interconnected with the reason why more and more construction companies are trying to reduce expenses with field construction equipment.
Yet, the profit that a construction company will gain throughout a year depends on a large scale from the tendering system. It is through the tendering system that construction companies get clients and contractors.
So, all in all, the construction company’s production capacity and its cost structure are highly interconnected.
Hence, it is in the periods when predetermined construction targets are not reached when construction companies are determined to reduce their expenses with field construction equipment.
In other words, construction companies can face with severe financial difficulties if they do not pay enough attention to the preventative maintenance of their field construction equipment, as well as on the other 7 tips that I have included in this article.
The compass of construction industry stretches from houses and buildings, up to public spaces and transportation system. Yet, one frequent threat to your budget is equipment downtime, when your equipment is not in the field working, it is costing you money.
On the other hand, field construction equipment is a big investment.
That is why it is so important to reduce downtime as much as possible- so you can keep your equipment functioning properly instead of sitting on the sidelines.
If you have already had any previous experience with expense reducement with field construction equipment, then I would suggest you share your experience with us in the comment box. Moreover, you can even provide us with additional tips and tricks when it comes to reducing expenses with field construction equipment.