Steel Fabricators: Increase Profits with BuildingPoint Canada by Making the Right Move in Hiring New Staff

When business is booming, there is often the tendency to hire more people to take on more work. While this is a critical task that ensures the right functioning of your business, it represents many costly sides.

The Society for Human Resource Management (the equivalent of the Chartered Professionals in Human Resources (CPHR) in Canada) estimates that when one factors in soft costs like training, recruitment, and onboarding, the cost of hiring a single new employee can be as high as three to four times their annual salary. Keeping that in mind, steel fabricators – among other construction industry professionals – looking to improve margins would do well to be strict in the selection of the right hiring and invest in efficiency and process optimization.

In the following article, we present some of the ways BuildingPoint Canada can help steel fabrication companies increase their margins.

Leverage Advanced Technology

Integrating advanced technologies can bring about a sea change in profitability. According to the McKinsey Global Institute, the construction industry has seen productivity increase by 14-15% and costs reduced by 4-6% due to digital transformation. Advanced software solutions are now offering a suite of services to help operations become seamless, reduce errors, and manage projects more effectively.

For instance, BuildingPoint Canada provides the advanced Tekla PowerFab software, which is model-based for the steel fabrication industry. It enhances production management, estimate, and inventory control to ensure a considerable reduction of time wasted from reworks arising due to errors in communication.

Real-time data, advanced modeling, and better coordination avoid bottlenecks and the constant need for correction. Equipped with better data at their fingertips, teams spend less time correcting mistakes and more time focusing on the tasks at hand that spur growth. The use of Tekla PowerFab has reaped huge dividends in operations for companies worldwide wherein its staff can understand changes without having to go through unnecessary iterations of communication backwards and forwards.

Smoothen Workflows and Processes

Steel fabrication companies spend too much time resolving problems that could have been avoided. According to the industry publication Digital Builder, almost two whole working days are wasted every week by construction businesses due to issues that could have been avoided if processes were better. This can be eliminated by optimizing the workflows and automating repetitive tasks. A good example of solving this problem is relying on model-based software like Tekla PowerFab.

Instead of investing in more personnel to perform tasks that are beneath them, a company can automate such tasks to free up more time and smoothen the workflow. Automation of processes makes tracking, documentation, and reporting easier, hence affording better opportunities for results assessment and improvement. In this way, your team will be able to focus on higher-value activities, raising overall productivity and profitability.

Improve Planning Efficiency

Planning in steel fabrication can be very complex and time-consuming, especially when unexpected changes arise. Whether it’s changes in project requirements, new stakeholders, or design adjustments, the ability to adapt and make informed decisions is critical to success.

With advanced technologies such as that offered by the production planning software developed by Trimble, access to reliable and up-to-the-minute data on projects can only guarantee timely teams for the best decision-making possible. Consequently, it reduces some errors that often create a nightmare with rework expenses. Another major benefit associated with this includes a clear direction to change orders. It increases efficiency among all working teams operating at a fast pace.

Training and Development Investments

Opening the business to new employees to fill productivity gaps can potentially neglect the existing pool of talent in your workforce. Research by the Mechanical Contractors Association of America indicates that training and developing current employees can be 73% less expensive than hiring new ones.

BuildingPoint Canada helps steel fabrication businesses unlock the full potential of their current workforce as well as their new hires through continuous training and support. Our customers expressed just how smooth the transition to new technologies was with our support. Thanks to Tekla PowerFab’s intuitive design, employees quickly mastered the software, enabling a rapid implementation. With just a few weeks of training provided by us, staff were ready to deploy it effectively in their workflows. By investing in employee development, your employees become more proficient at using new technologies and tools, which will make them more efficient and better contributors to success.

Automating Structural Analysis and Design for Increased Profitability

Other options for increasing profitability include automated software for structural analysis and design. This automation simplifies complex processes and frees engineers for higher-level analyses like considerations of safety, profitability, and sustainability.

By automating structural analysis with solutions like Trimble and Tekla’s design tools, businesses can speed up design processes and improve accuracy. Automated design allows engineers to share detailed reports, drawings, and schedules quickly, reducing time spent on manual tasks. The ability to automatically compare models and make changes more easily also reduces errors and improves overall efficiency.

Pathway to Profit

While hiring is necessary, it is sometimes cost-effective to invest in technologies and processes that streamline and improve productivity within operations. Leveraging advanced tools and focusing on internal development is how BuildingPoint Canada can better position steel fabricators for higher profitability, while adding some specific hires to the payroll.

Smarter technology, better workflows, and improved planning can often create even more value than adding people. These strategic investments will help your company position itself for continued growth and success.

Contact us to book a demo for your team.