‘The hidden cost in Construction’ blog post copywriting, IFS. Many construction and engineering companies are so focused on winning projects that they overlook the importance of managing plant and equipment cost-effectively. This thought leadership blog, briefed to me by the Construction and Engineering Global Industry Director, explains why.
- COPY: Ian Castle, Freelance Copywriter
- CLIENT: IFS
Construction thought leadership blog copy sample, IFS (US English)
[Excerpt]:
PROTECTING PRESSURED MARGINS
Whilst renting machinery and plant assets is financially attractive, unless used effectively, they also represent a significant hidden cost. Any idle, under-utilized or unavailable equipment that is not paying its way represents a hidden direct overhead contractors can ill afford. With average 2021 profit margins in the construction sector as low as 3.9 per cent (UK), 4.6 per cent (North America) and 6.1 per cent (Continental Europe)1 cost control is top of the agenda. And whilst a construction business may have a management information system tracking materials and labor, does it have the same visibility and financial tracking of performance across rented assets and plant?
Clearly, asset fleets require continual management to ensure optimum maintenance and performance. They also need to be available when and where required, manned by correctly skilled operators, and operated to maximum efficiency to ensure project deadlines are met.