In this digital age, terms like automation are often discussed. However, incorporating the concept of automation into your business can be overwhelming at first. After learning about the great ways that automated production could save your business money, we’re sure you’ll believe it’s well worth the initial investment.
Labor Costs
Probably the most apparent way that automated production can save your business money is by reducing the need for manual labor. On the surface, this may seem like you’re simply saving the laborer’s yearly salary. However, you need to look well beyond just their pay rate. When you have manual laborers, you have to pay for things like health plan contributions, workers’ compensation insurance, and paid holidays. When you automate your production, you don’t have to worry about all the expenses that come along with manual labor.
Management Costs
When you employ fewer workers to produce the same or even more products, you can save yourself a bundle on overhead costs. You’ll need fewer managers to handle fewer employees. They won’t have to waste time on processes like vetting and hiring new laborers, and they won’t have to spend a lot of time on HR and other related management tasks. With automated production, you can free up the time that management would otherwise be spending on labor-related issues and better direct that time to expand your business further.
Human Error
Unfortunately, with manual laborers, there’s always going to be some human error in your production process. We’re not machines and can’t be perfect. However, when you opt for automated production, you can eliminate human error. This means spending less time fixing mistakes and minimizing your risk of legal issues due to an error in the production process.
Fewer Workers’ Compensation Claims
When it comes to the manufacturing industry, it’s well-known to have a high level of healthcare claims by workers. The repetitive tasks that laborers undergo each day have been shown to lead to musculoskeletal injuries. Over time, it’s not uncommon for laborers to file for workers’ compensation claims due to their muscular injuries. Unfortunately, this means more money coming out of your company’s pocket to support your rising workers’ compensation insurance costs. With automated production, robotic equipment excels at repetitive tasks and will never need to file a workers’ compensation claim.
Fewer Logistical Problems
When you rely on manual labor as the backbone of your business’s production, it can lead to inconsistent production amounts. For example, if multiple employees call in sick or someone gets injured, the production for that day is going to be minimized. This can lead to major logistical problems as you may be short on products for your customers. When you upgrade to automated production, you can reap the rewards of having a reliable production source. Your production equipment will perform at whatever rate you have set, which means you can guarantee your production quantity for any given day.
It’s very clear that automated production is a major positive for any type of manufacturing business. From eliminating the costs associated with human error to paying fewer employees, your business can save a ton of money by switching to automated production.