With the economy still reeling from the aftermath of the coronavirus pandemic, manufacturers are skeptical about being able to maintain a profit moving forward. In fact, 75% of manufacturers claim that inflation is worse now than six months ago and over half note that it is becoming even harder to stay competitive and continue to turn a profit.
While an increase in raw materials and the cost of freight and transportation is hitting the industry hard, other factors include energy costs, a labor shortage, and the need for higher wages and salaries. For those companies that have a small — or possible no — in-house IT support, these issues are exacerbated by slow networks, intermittent machine downtime, and even a lack of cybersecurity. These factors can contribute heavily to reduced productivity which can increase the overall cost of doing business.
Fortunately, there is a simple and attainable way to get these costs under control — by partnering with a managed service provider (MSP) that offers robust Managed IT services.
How Manufacturers Can Save Money with Managed IT
Managed IT services offer manufacturers the chance to increase productivity while reducing negative impacts on their bottom lines, a critical focus in our post-pandemic economy. Here are just a few ways a smart Managed IT strategy can assist your manufacturing organization:
Reducing the Incidence of Unplanned Downtime
Machine downtime, whether it is a desktop computer or a machine on the production line, takes a big bite from your bottom line. With 82% of companies experiencing at least one of these incidents in the last three years and many suffering more, downtime is a serious money drain for manufacturers. On average, manufacturers experience more than 15 hours of downtime every week and when the production line stops, costs add up. For automotive manufacturers, this can be $22,000 per minute, on average. You must consider the costs of labor, overtime, wasted product, reduced capacity, and even hidden costs such as lost sales, customer service glitches, indirect labor, and more.
Through constant monitoring, proactive maintenance, and on-call troubleshooting, a Managed IT solution can help reduce reactive work and raise equipment reliability.
Stemming the Labor Shortage with Lower Cost IT Talent
Two things are going on that are impacting manufacturing businesses when it comes to labor: There is a shortage of talent across the board, particularly in the field of IT, and there is a need to pay top dollar for talent that does exist.
Managed services providers have one focus — IT — so they have the ability to pay salaries that attract top-notch talent. That talent is then available to your manufacturing business for a reasonable monthly fee when you sign up for Managed IT services. Partnering with an MSP reduces the need to carry expensive IT department personnel on your payroll or frees up your in-house personnel to focus on mission-critical tasks while your IT partner takes care of day-to-day needs.
Increasing Hardware Lifespan
Your IT infrastructure represents a big investment that includes endpoints such as computers, laptops, copiers, and other equipment as well as servers, networks, and more. If hardware is not properly maintained, it can break down sooner. Even something as simple as dust can impact the lifespan of expensive equipment, causing overheating and damage to internal parts. A shortened lifespan impacts your return on investment across technologies, reducing your bottom-line health. When you partner with an MSP, your equipment is maintained and serviced on a regular basis, increasing its lifespan and making a quantifiable difference in your overhead costs for technology.
Blue Technologies is Your Managed IT Partner
Manufacturing is a fast-paced business with little room for error when it comes to productivity and profit margins. Make the most of your business operations — and revenues — by partnering with us for targeted, cost-effective Managed IT services.
At Blue Technologies, our team of IT experts can help you streamline business processes, amplify employee productivity, and get a grip on technology costs by offering a custom-tailored IT solution. We carefully assess your current infrastructure for vulnerabilities and weaknesses, suggest changes for optimized performance, and ensure that your equipment is properly maintained and serviced for a longer life span and better return on your investment.
Maximize your IT performance while minimizing costs. Contact a Blue Technologies consultant and learn how our Managed IT program can help your organization thrive.
