Manage the Changing Dynamics of Your Job Site

Jeff Mehrer, Panduit Solutions Director, Industrial Construction

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

Unavailable Materials

• 3 installers standing idle @ $70/hr. unable to complete an installation

Missing Items

• 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

Expedites

• 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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