Top Strategies for Cutting Costs
1. Spending more quality time on the job sites to head off some of the costly mistakes we didn't have time to catch when we were super busy. This is educating our guys as well.
2. Talking to our people - they know more than I do on what costs can be cut and where there are opportunities for efficiencies.
3. Using the 10% rule and assuming we can slash overhead on all lines by at least that amount.
4. Rigorously reviewing expenses such as Insurance (GL, Health, WC), reprographics, Computers, outside consultants (legal, IT, accounting, software), office perks, utilities, lease, 401K matching and negotiating better pricing or reduced plans.
5. Made an operating budget and sticking to it - and not being afraid to say no
6. Increased our costs ONLY when there is work (and therefore increased revenue) to support those costs, and do it in ways where we have the ability and option to decrease (or eliminate) the costs when work slows down. Examples of this would be the addition of field superintendents, project managers, and office admin help when we're busy, and cutting back when we get slower.
7. Not taking on the expense of a big fancy office, primarily so that we don't have the pressure to bring in enough money to pay for it in slower times.
8. Getting rid of overpaid, un-productive employees. We're making sure all employees/managers are a right fit for the job they have, and letting them go if there is no fit for them. Quit worrying about it and, just let them go.
9. Balanced crew work loads to avoid overstaffing projects.
10. We took a page from the state; we're "closing down" two Fridays a month. This roughly equals the cost of one journeyman, so rather than laying off one employee we're spreading the pain across the whole team - including the owners.
11. We have two of our low level apprentices participating in the state job sharing program. Each employee works 20 hours per week and draws SUI for the other 20 hours. This allows them to continue building their skills and receive their heath insurance benefits
12. Taking a hard look at benefits and getting back to reality. We've showed the employee what we are doing to keep their jobs intact and found they are more than wiling to share the sacrifice.
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