Inflation is on the rise, and it’s becoming more of a challenge just to keep businesses afloat, let alone aim for profits.
And in this relentless tug-of-war with rising costs, labor expenses (particularly manual labor) seem determined to drive up the costs.
In the manufacturing world, these costs can get quite high.
In fact, U.S. manufacturing sector unit labor costs rose by a hefty 3.2% in the second quarter of 2024.
Those costs, which essentially reflect the relationship between what you pay workers per hour and what they actually produce in that time, are a solid indicator of inflationary pressure on producers.
Not exactly the kind of upward trend we want to see.
But here’s the million-dollar question: how to reduce labor costs in manufacturing with digital signage. Let’s explore how it can make a difference.
In the world of manufacturing, facilities can feel like their own little ecosystems—teams moving in sync, machines humming, and processes ticking along.
This is why, just like in any ecosystem, a breakdown in communication can lead to chaos.
That’s where digital signage comes in.
With real-time updates flashing across the floor, digital signage makes sure that no worker is left wondering, “Wait, what’s going on?”
By broadcasting up-to-the-minute information, digital signage helps reduce idle time, which, let’s face it, costs you money.
Imagine those screens displaying production targets, machine status, or even inventory updates instantly. Workers don’t have to chase down supervisors for info or stand around waiting for instructions.
The result? Reduced downtime and improved productivity—all of which help to cut down those labor costs in manufacturing.
And, for a twist, digital signage can also bridge language barriers, which is a lifesaver in multinational manufacturing settings. Need a safety alert in Spanish or French? Digital signage has you covered.
Digital signage isn’t just there to keep everyone in the loop—it’s also a fantastic training tool that can take your onboarding process from average to magnificent.
Picture this: instead of pulling workers off the floor for lengthy training sessions, you simply pop training content onto strategically placed screens around the facility, or as easy as having digital signage in the break room or lunch room set up ready to go. Voilà! Training is now an on-the-job, real-time experience.
By using digital signage to display schedules, resources, and even quick how-to videos, you’re providing employees with the knowledge they need right when they need it.
Need to teach a new process? Upload a quick animation or a flow chart to the display. This is faster and allows workers to pick up skills without any major disruptions which equals upskilling at its finest.
And the result? Lower labor costs and a more efficient workforce that’s ready to hit the ground running.
Now, let’s talk retention.
Research shows that people remember about 65% of what they see paired with a relevant image, compared to just 10% of what they hear. With digital signage, you can tap into this magic by incorporating visuals, microlearning moments, and quick refresher tips.
In the manufacturing world, safety isn’t just a suggestion—it’s the golden rule.
Digital signage steps up to make sure that rule is front and center, keeping workers safe and sound (and the business wallet happy).
With digital signage dotted across the facility, from the bustling production floor to the cozy cafeteria, safety protocols are constantly on display. Think reminders to wear that hard hat, or arrows pointing out emergency exits.
When it comes to real-time emergency alerts, digital signage integrates alarms and external systems. These screens can flash urgent warnings faster than you can say, “Watch out!”
This can mean the difference between a close call and a costly accident.
After all, fewer accidents mean lower labor costs in manufacturing by cutting down on medical expenses, downtime, and even those extra compliance headaches.
And don’t forget those countdown timers that track the number of days without an accident.
If you’re wondering how to reduce labor costs in manufacturing, then you have to focus on your employee productivity.
Let’s face it, everyone loves a bit of feedback—especially when it’s real-time, colorful, and plastered on a big digital screen for everyone to see!
Digital signage takes performance tracking up a notch by showcasing key metrics right there on the factory floor.
We're talking production targets, quality metrics, and shift performance on full display.
The result? Daily grind into a bit of a game---“Oh, we hit 500 units today? Let’s aim for 600 tomorrow!”
Then there's the magic of digital signage: making employees aware of their contributions to the bigger picture. When they can see how their hard work stacks up, they’re more likely to feel motivated and focused.
This keeps wasted labor hours to a minimum and productivity on the rise—both of which do wonders for keeping labor costs in check.
By displaying real-time data, digital signage also allows managers to quickly spot any lagging areas. Whether it’s identifying who’s crushing their targets or which machines need a little TLC, digital signage makes it easy to track, tweak, and improve.
Organizations that prioritize employee appreciation have workers who are 56% less likely to start eyeing the door for a new job.
That’s where digital signage comes in—it's perfect for celebrating achievements, whether it’s for crushing a production target or keeping a spotless safety record.
And when employees feel valued, they stick around. Lower turnover means you’re not constantly throwing money at recruitment and training costs. So, with digital signage, you’re not just patting backs—you’re cutting down on labor costs in manufacturing, too.
But digital signage is more than just about the feel-goods.
It’s also the ultimate tool for ensuring accuracy and efficiency with visual SOPs displayed right at workstations. Clear, step-by-step instructions mean employees always know what to do, so they’re less likely to make mistakes or need a redo.
Remember: Whether it’s for a quick high-five or a crucial workflow reminder, you can now finally answer the penultimate question—how to reduce labor costs in manufacturing? It’s simple—effective digital signage.
Digital signage is one single tool that wears many hats.
It's a game-changer in the battle to reduce labor costs in manufacturing by boosting communication, improving training and safety, and motivating employees with real-time feedback.
And if you’re ready to put this theory to the test, look no further than L Squared.
With over 17 years of experience and a history of success with Fortune 500 companies, L Squared provides the tools to keep your workplace running like a well-oiled machine.
Setup is a breeze—you can have your system up and running in just an hour. Plus, their 24/5 live support and customizable features mean you’ll have everything you need right at your fingertips.
So, why wait? Take the leap and get in touch with L Squared today!