One of the greatest challenges for an electrical contractor is the coordination of product flow from the suppliers to the project site. This is a direct result of the industry’s difficulty in projecting future demand based on the variability and real-time dynamics of a job site.
Industry numbers* show that only 60% of labor hours are spent on productive, direct installation. Meanwhile, 40% of labor hours are consumed by “un-productive” material handling activities. This translates to 17% of revenue dollars slipping through the fingers of the average contractor.
*Agile Construction for the Electrical Contractor
The Parts You Don’t Plan Can Cause Delays With Big Dollar Impact
- 3 installers standing idle @ $70/hr. unable to complete an installation
- 1 person @ $30/hr. (+gas) driving to the local supplier for 1 box of lugs or fittings
Bulk Buys or Safety Stock
- Contractors can carry hundreds of thousands of dollars in inventory to help avoid costly labor downtime
- Cash tied up in inventory is not available for other business investment needs
- Dedicated office staff who “react” to material shortages
- Project managers and foreman on-site spend time tracking down materials instead of managing construction
Lost or Stolen Materials
- Product purchased ahead and stored on-site will likely be “moved” more than once, increasing the risk of loss or theft
If contractors could reduce material handling costs by 5% that will drop almost 1% to their bottom line increasing their gross profits by more than 25%.
Take control and keep installers working with the new JobSight™ Material Handling Program for electrical and network installers powered by Pan-Pro™.
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