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How much does the loss of machinery and tools cost your business?

Blog post   •   Aug 24, 2018 11:20 BST

Loss of tools and machinery

All tradesmen know the frustration of not being able to find tools and machinery when they need them. Both when you pack the van to go to a job or when you are at the construction site and can not find your equipment, resulting in having to call colleagues, in order to find out who had the equipment last. It’s not always possible to find the equipment, often forcing you to buy new ones at a large expense.

Big costs

It's not just frustrating for the tradesmen, the problem can cost a fortune for the company. Two different studies show that costs related to lost tools cost up to 14% of labor costs (Ogershok, 1999) or up to 2% of the total construction cost (Means, 2004).

As a tradesman, you know that machinery and tools are very expensive and will be a big expense to replace. However, both studies emphasise that the costs are related to lost working hours and reduced efficiency as it involves looking for lost tools.

How much does it cost you?

The cost of personnel, materials and equipment multiplied by 0.14 or total production cost multiplied by 0.02 = the approximate cost related to lost tools.

In a whole year, this adds up to a large sum for small companies.

Get full control of your tools and machinery

Tracking your machinery and tools will not only save the frustrations of your staff. With full control of machinery and tools, the company becomes more efficient and fewer tools need to be replaced, which means big savings.

ABAX offers various types of GPS tracking for different types of equipment and needs:

  • ABAX Equipment Control with power source for machinery and equipment that has its own power source
  • ABAX Equipment Control with battery to monitor equipment that does not have its own power source
  • ABAX Mini with built-in battery that you simply attach to smaller machinery and tools

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