Issue link: https://read.dmtmag.com/i/155946
28 • SEPTEMBER 2013 • WORLD FENCE NEWS In our current business environment we are constantly reminded how fundamentally necessary it is for businesses to survive by cutting costs and reducing overhead. The mantra of the day has become "No more free lunches." Yes, slashing inventories, gutting expense accounts, trimming fat, and trying every way possible to become more productive without spending more money has indeed become the modern day philosophy. Increasing your company's profits by cutting overhead and working more efficiently BY TOM LUBY, PROFIT BUILDERS INTERNATIONAL Reducing labor costs is obviously the result of the cost conscious mindset of the modern business owner, and so it is equally obvious why employers are reluctant to hire unless absolutely necessary and why unemployment is still so high and may remain so for some years to come. Bridgeport, CT Phone: 800-221-0340 Fax: 203-330-9578 Great Neck, NY Phone: 888-287-4942 Fax: 516-482-0808 A Division of Bushwick Metals, Inc. A Division of Bushwick Metals, Inc. www.bushwickmetals.com Englewood, NJ Phone: 800-631-1543 Fax: 201-567-9530 Richboro, PA Phone: 800-221-7781 Fax: 215-364-2612 Your Metals Partner for Fencing and Guard Rail Products • Galvanized Pipe • Fence Tube • Galvanized Squared Tube • Guard Rail • Stainless Pipe and Tube Complete line of Carbon and Stainless Products We all know that the easiest way to add dollars to your company's bottom line profits is to cut overhead. For example, if your company operated on a 10% ANP (Adjusted Net Profit), on average you would have to increase sales by $1,000 to achieve the same bottom line results as cutting expense by only $100. That is "Business 101," a no-brainer and certainly no surprise. But what if you have already trimmed all of the fat possible from your operations? Where do you look now for a reduction in overhead that will lead to increased profits? How about improving performance without increased expense? Or reducing waste and expanding productivity by improving employee performance? But how? For the most part, in the fence industry we do not have any benchmark indicators or set measurements of performance for our employees. This can be especially disconcerting for the bottom line when we involve production employees. Therefore, the establishment and enforcement of measurable labor standards and production/performance standards are critical to reducing costs and improving performance, thereby bolstering the bottom line. Yes, this can become a sure way to increase your company's productivity and profitability with no cost to the company, other than the investment in time and due diligence to understand and implement the process. And what's more, virtually every fence company in America is guilty, to some degree or another, of negligence (or worse) in establishing and upholding labor standards or working goals for production employees. OK, so let's "begin at the beginning." Exactly what are labor standards? A labor standard is nothing more than what the name implies: a measurement (which then becomes a standard, usually measured in time) by which you judge the productivity of your labor force. This is almost always measured on an individual basis or for a very small group, such as an installation crew in the fencing industry. When measuring something, you obviously look for the best results. Therefore, when measuring labor standards you will measure what is the "standard" or shortest (best) amount of time that the most capable worker (or Isn't It Time to Put the Strength of the Gorilla to Work for Your Business? Fast Installation, Water-Shedding Designand Now ICC Compliant... From its patented interlocking design to its incredible water-shedding technology, nothing beats the durability and strength of a Gorilla Deck® by Homeland Vinyl Products™. Now, both our Gorilla Decks and six railing styles are ICC compliant making them one of the most attractive decking systems in the industry today to sell and install. Call now and add the strength of a Gorilla to your business now featuring ICC compliance (ESR-1657, 2003 IBC and IRC). Gorilla Decks feature: • UV stabilized vinyl • Strong interlocking design • Unique water-shedding surface • Concealed fasteners • Easy and fast installation MEMBER Patent No. 6,324,796 Phone: 205-854-4330 Toll Free: 800-999-6813 Fax: 205-854-3677 www.homelandvinyl.com VINYL FENCE, DECK AND RAILING MANUFACTURERS ASSOCIATION A Division of the American Fence Association