Want to boost your margins? Cost-cutting doesn’t work
Common approaches to cutting costs on construction projects are often counterproductive. Business, even when conducted with the best of intentions, is ultimately about making money. That’s why so many firms up and down the construction supply chain are so fixated on the cost of something, but not the value it brings. Lower costs equal higher margins, which means more profit, and a healthier, more successful business.
Let cost take care of itself At BBI Services, we believe that a totally different approach is required. It’s not about obsessively focusing on cost. It’s about rigorously tackling issues around quality, productivity, value and safety – which, if you solve them, mean that cost will take care of itself. When it comes to thinking about cost, we drive the businesses we work with to not just think about the money they spend up front, but really explore, challenge, and streamline all operations in order to drive waste out and embed value right first time, every time.
If you really want to cut costs, think of productivity, quality and health and safety as a triangle, with cost in the middle. Work to get the tangible three aspects right, and costs will automatically be reduced.
Research has identified that productivity in the construction sector has flatlined for 20 years while other sectors have dramatically improved.
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