Are you looking for ways to decrease running costs? In this article, we highlight 10 ways to reduce your operating costs, with a particular focus on your infrastructure.
Investing in the right infrastructure can help businesses reduce operating costs, protect valuable assets and improve operational efficiency. The best opportunities depend on your current expenses, industry and long-term plans.
Before investing in new infrastructure, consider these five priorities:
Start by identifying where your business loses the most time, energy or resources. You can then prioritise investments based on their expected benefits, upfront costs and ongoing maintenance requirements.
By assessing your current workflows, you can identify any inefficiencies that may be contributing to your operating costs. While they may seem minor, these problems can quickly lead to lost productivity and material waste. When you note which aspects of your operations could be streamlined, you can make proactive changes and reduce expenses.
For example, if you note that one machine requires far more maintenance and fuel than another, it may be worth replacing it with a more efficient model.
If you spend a lot of time on repetitive tasks, automated solutions can free up your time. Depending on your industry and operations, automation may include inventory management systems, robotic warehouse systems, or payroll platforms. These tools will reduce labour costs and minimise errors, allowing you to focus on the jobs you care about most.
Energy consumption is one of the biggest expenses in many businesses so it’s worth looking for cost-effective solutions. One of the best options is using solar panels on your building to power your building and equipment. This will not only reduce your energy bills but also improve your business’s carbon footprint.
If you want to install solar power, our team will engineer your building or shed for solar gain, accounting for the best roof pitch, orientation, and structural strength. The Australian government also offers rebates and loans to get you set up.
A purpose-built shed or building is a game changer, providing a space to store your most valuable assets. You can store all your equipment safely and securely, protecting it from the weather and theft, greatly reducing wear and tear over time and lowering maintenance time and costs.
At Standwell, we specialise in workshop sheds, machinery sheds, and commercial sheds. If you want to upgrade your infrastructure, use our Shed Builder tool to explore your options.
If your machinery or equipment runs sluggishly, it’s worth upgrading to a more efficient model. This way, you can streamline your workflows and, in most cases, the cost will be quickly recovered in energy savings.
To lower your expenses, we recommend optimising your industrial shed or building for energy efficiency. At Standwell, we can design your shed with this in mind, incorporating whirly birds, a range of door options, and insulation.
To reduce power usage even further, consider installing a polycarbonate sheet in your walls to maximise natural light. This is a lightweight and durable solution ideal for Australia’s harsh conditions. We can also incorporate windows into your shed design, increasing natural light and airflow.
Storing products or crops in a purpose-built space minimises the risk of stock loss. With a storage shed, your stock is protected from weather damage and theft, maximising your revenue. You can also stockpile supplies, placing orders while the rates are more affordable and avoiding any higher rates when the market is unfavourable.
With a large shed or building, you can also adapt your storage according to the season. This flexibility allows you to prepare your stock in advance. When you can’t complete other tasks due to the poor weather, simply use your time to service your machinery, organise your storage, and get your administrative tasks in order.
Another overhead to assess is water usage, especially if you operate in a drought-prone area. Effective water management will reduce your environmental footprint but can also lead to significant savings. Key steps to take include conducting a water audit, installing water-saving solutions, and collecting rainwater.
By installing rainwater tanks on your building, you could catch and store a significant portion of water to service your building. Even with a minimal rainfall of 500mm, a 15m x 32m hay shed could catch up to 240,000 litres of water annually!
Inadequate pest control could lead to substantial stock losses and asset damage. Rodent and insect infestations are a constant threat in Australia so it may be worth using concrete bunker-style walls to keep mice out. This also means you can fumigate your building in case of an infestation.
If you’re investing in a shed or building to optimise your operations, it pays to be prepared for whatever the future might bring. Firstly, we always recommend building a shed that’s larger than you currently need so that you can easily expand or adjust your processes without rebuilding.
We also recommend accommodating for any machinery you may want at a later date. For example, you may want to choose roller doors with higher clearance or incorporate structural supports for a gantry crane. For more examples and advice, reach out to our team or try our Shed Builder tool!
Different infrastructure improvements address different operating expenses. The right investment depends on your current challenges, site conditions and budget.
| Investment | Potential operating benefit | What to assess first |
|---|---|---|
| Solar panels | May reduce electricity purchased from the grid. | Energy usage, roof orientation, structural capacity and installation costs. |
| Insulation and ventilation | May improve indoor temperature management and reduce cooling requirements. | Building use, climate, airflow and insulation requirements. |
| Machinery shed | Can help protect machinery from weather exposure and reduce avoidable damage. | Equipment value, storage needs, access and security. |
| Purpose-built storage | Can help protect stock and materials from weather-related damage and loss. | Inventory type, storage conditions, stock turnover and capacity. |
| Rainwater collection | May reduce mains water use for suitable applications. | Roof catchment area, local rainfall, tank capacity and intended water use. |
| Efficient building layout | May reduce unnecessary handling and improve workflow. | Current processes, equipment movement and access requirements. |
| Future-ready design | May reduce the need for disruptive modifications as operations grow. | Planned machinery, clearance requirements, additional capacity and expansion plans. |
These investments do not guarantee savings in every situation. Assess the costs and likely benefits against your existing operations before deciding which improvements to implement.
Before committing to an infrastructure upgrade, work through the following questions to identify opportunities and compare potential investments.
Once you've identified potential improvements, compare their upfront costs with the expected savings over time. Prioritise projects using realistic estimates and consider which upgrades offer the greatest value for your business.