Productivity in the Construction and Manufacturing Industries: Part I

Workplace productivity in construction and manufacturing businesses continues to be one of the least understood factors in the American economy.  One thing is for sure – management is a big key to success.  Ineffective management has been named as the major cause of poor productivity, not unmotivated and unskilled employees. There are several things that owners can do to make management more effective and to increase productivity through management.

Benchmark your labor on a daily or weekly basis.

One key benefit in benchmarking is that it allows you to compare your company’s labor performance from year to year and from season to season. Start by comparing your current labor productivity to your historical standards, industry standards, and your job plan. Some other benchmarks to consider implementing include: number of employees to gross revenue, number of employees to net profit, profit contribution by field labor hour, total field hours, number of hours of overtime, and daily production rates.

Davis & Hodgdon Associates CPAs Entrepreneurial Advisory Services include benchmarking and assisting in the improvement of internal processes and productivity. Call 802.878.1963 or visit for more information.

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