Forklifts are essential equipment in the material handling industry, and any downtime can negatively impact a company’s operations and profitability. Forklift downtime refers to when a forklift is unavailable for use due to repairs and maintenance.
While some downtime is unavoidable, it can lead to reduced productivity and increased repair expenses, ultimately affecting a company’s profitability and long-term success.
Forklift downtime costs can be high, and therefore it’s crucial to ensure that forklifts are consistently compliant and in working condition. In this blog, we explore the impact of downtime on business productivity and profitability and discuss ways to minimize it to increase operational productivity and save costs.
Calculating the forklift downtime cost is crucial for any business, as it can help identify lost productivity and revenue costs. However, it can be complicated to determine the exact cost of downtime, as it includes several variables.
For instance, if a forklift breaks down, repair costs would include the parts and labor needed to fix the equipment. Additionally, the wages paid to the operator would need to be considered, as they could not work during the downtime.
If the business had to incur overtime hours to catch up on lost production time, that cost would also need to be considered.
Furthermore, expedited shipping fees and other expenses incurred to ensure orders arrive on time must be considered, as downtime can delay shipments and affect customer satisfaction.
If the business lost customers or revenue due to missed deadlines, that cost would also need to be considered.
Moreover, wear and tear on other equipment and operators who had to fill in for the missing equipment would also need to be considered, as it can cause further disruptions and delays.
Businesses can make informed decisions on minimizing downtime and improving productivity by determining the downtime cost.