Poor use of tools in the construction industry can lead to lower productivity, increased costs, and safety hazards. According to a National Institute for Occupational Safety and Health (NIOSH) study, inadequate use and maintenance of tools and equipment contribute to about 400,000 injuries and 200 deaths in the construction industry each year in the United States alone.
Asset mismanagement is also a significant issue in the construction industry. According to the consulting firm McKinsey & Company study, construction projects typically suffer from cost overruns of 80% on average and schedule overruns of 20%. Asset management, including accurate equipment and materials tracking, can help with these overruns.
The use of technology and software, such as GPS tracking and web-based inventory management software, can help mitigate these issues by improving management, control, and visibility into project progress. Training workers on proper tool use and maintenance can also help reduce injuries and improve productivity.
Costs for stolen construction assets range in billions of dollars annually.
The construction industry is known for high rates of stolen assets and lost tools, and these costs can add up quickly for companies. Some estimates suggest that the construction industry loses billions of dollars yearly due to theft and lost tools. Here are some specific costs associated with these issues:
- Equipment & material theft: Construction equipment theft is a significant problem for the industry, with estimates suggesting that companies lose billions of dollars each year due to stolen equipment. The costs associated with equipment theft include the cost of replacing the stolen equipment, the cost of downtime while the equipment is missing, and the cost of increased insurance premiums.
- Lost or damaged tools: Construction companies also face the problem of lost or damaged tools, which can be costly to replace. This includes hand, power, and other specialized tools used in the construction industry.
The costs of the construction industry's stolen assets and lost tools can be significant. Therefore, companies need to protect their assets and minimize these costs. This can include investing in security measures, implementing inventory management software, and ensuring that tools are correctly accounted for and maintained.
Mismanagement of tools and inventory can also result in high costs for construction companies, including increased equipment and tool replacement costs, downtime and lost productivity, labor costs, delays and project overruns, and liability and safety risks.