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In manufacturing, high operating costs<\/strong> are a constant battle. Two of the most significant and controllable expenses are material waste<\/strong> and wasted labor<\/strong>. Every scratched sheet tossed on the scrap pile and every minute a skilled worker spends searching for materials is a direct drain on your profitability. It’s time to stop this predictable bleed. This article outlines how to lower your high operating costs<\/strong> by tackling these two issues at their source.<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Talk With An Expert<\/a><\/div>\n

Take a walk through your facility. How much of your high operating costs<\/strong> are tied up in inefficient processes? You might see a $30\/hour welder waiting for a forklift operator, who is currently “digging” through a 5-ton stack of steel to find the right gauge. This is a perfect example of wasted labor<\/strong>. In the corner, you see the scrap bin, filled with sheets damaged by forklift tines or scratched from being dragged across a concrete floor. This is material waste<\/strong>. These two problems are not separate; they are symptoms of the same core issue: a disorganized and inefficient storage system. By implementing an engineered solution like a sheet steel storage rack<\/a>, you can attack both problems simultaneously.<\/p>\n

The Two-Headed Dragon of High Operating Costs<\/h2>\n

Material waste<\/strong> and wasted labor<\/strong> feed each other, creating a cycle of inefficiency that inflates your high operating costs<\/strong>. A chaotic storage system forces workers to rush, which leads to damaged material. That damaged material then has to be sorted, scrapped, and replaced, which creates even more wasted labor<\/strong>.<\/p>\n

Breaking Down “Wasted Labor”<\/h3>\n

Wasted labor<\/strong> isn’t just about employees standing around. It’s any activity that consumes payroll without adding value to your product.<\/p>\n