Mike Andes shows how a 10% gain in labor efficiency turns into $180,000 extra profit on $1.8M revenue. Cut a 24-person crew to 20 through attrition, align bonuses to revenue-per-crew, and hit the output of 26-27 people. That shift alone could raise productivity 15-20%.
$1.8 million
$180,000
24
20
15–20%
Is there inefficiencies in our current crew that we can somehow weed out? Typically, there's less of those on a commercial site because you have less stop and go. But at 1.8 million, if you can make the labor 10% more efficient, you'll get $180,000 in extra profit. How can we take our current 24 guys and instead of going out and hiring to 26 and 27, how do we go from 24 to 20 and let natural attrition get some rid of some of them, but still be reduced as if there's 26 or 27 of them? Truly, there's six of those.
And then I'm assuming three underneath each of them, and then we have ops, and then I'm just going to call it you guys up here. So these guys are on salary, I would assume, right now? If you say, okay, you guys got to get done in eight hours. You know how much revenue a crew makes per day? It's probably at 1200, something like that. Okay. It really comes down to you guys, though, because right now you're saying, hey, you got to get back within eight hours. What you could do is really focus on what's the revenue per crew, and. And then compensate bonuses based upon that, because what you want is tension in these crews right now. You have no tension. They all are fully aligned to making these jobs go as long as possible. So the crew leader right now gets salary. Yeah. Do they have any incentives? No. Okay. That. That's huge, because I think we can eliminate a fourth man. I think that these guys can all increase by 15 to 20% if you just have the incentives aligned correctly.
