The construction industry faces considerable financial pressures, and it’s a fine balance for businesses to reduce costs and increase efficiency at the same time. For procurement teams, buying lower priced tools is an easy way to reduce direct costs, but the impact this may have on productivity can make these types of savings a false economy in the long-term. Here is how.
While this approach minimises the initial cash outlay, purchasing cheaper alternatives can lead to various indirect costs through additional maintenance and repairs. Cheaper tools may also be larger, heavier and difficult to lift - requiring workers to take more breaks to recover and thus minimising productivity. They are likely to have reduced functionality too, which could lead to overheating (meaning longer cool down times).
"Having the right tools for the right job, meaning the right application, is not as obvious as it seems. It is the basis for productivity on a construction site as it has a significant impact on various factors and outcomes. Too often productive tools are replaced with cheaper options due to pressure on project costs. However, those often that lack performance and durability. When looking at the total cost of ownership it is often realized that in the long run, the initial cheaper version may not be the more economical one after all as it can lead to productivity losses and project delays."
– says Thierry Theus, Services Manager, Hilti Singapore.
In addition, procurement teams may not understand the practical implications of supplying workers with alternative equipment. Buying corded tools instead of cordless, for example, could prove a bad decision if workers don't have access to a power source on a particular jobsite. An electricity supply would then need to be provided from elsewhere, resulting in time wasted and perhaps added costs.
Investing in quality tools can not only help a business improve productivity, but also reduce overall costs. Key factors to consider when making a case for more advanced tools: