Productivity growth: the golden grail of the economy

Three methods to achieve productivity growth in steel and metal construction.

Productivity growth contributes to higher levels of prosperity because it can help solve all kinds of problems. For example, the problem of a tight labor market, or that of a lack of materials. But how do you get a grip on this so desirable panacea? In all cases, invest in employees and the context in which they work. Below we discuss three important complementary methods.

Method 1: automate

Unfamiliarity with and uncertainty about the outcomes of investments in automation makes companies reluctant. For example, we still too often see companies using Excel as an ERP package. It can be done, but that's all there is to it. The advantages of a real (and industry-specific) ERP package are virtually endless. It's much more efficient and thus provides immediate productivity gains. You can work with business intelligence and dashboards, giving you a higher return: more sales, more profits and less costs. By working with 5 statistics, you keep a grip on your business and your projects.

Investing in automation increases productivity in your company. Think of 3D modeling, BIM, digital ordering, bookkeeping with a software package or the ability to digitally control your machines directly from your ERP system.

Method 2: lean

Almost everyone has heard the term lean at one time or another. But what is lean working? In short, a strategy in which the focus of everything and everyone in the company is on creating value for the customer in all processes. This eliminates waste that does not add value. The term is not an abbreviation or creator's name, but an English word for "lean" or "without extras. Working lean in a company means always striving to work successfully, error-free and without waste. To achieve this, all processes in the organization must be designed smartly (lean).

Lean and ERP software go hand in hand; indeed, they are inseparable. This has certainly been proven with some of our customers. Curious? Watch the webinars about this, in which your industry peers talk about their experiences in the field of yield improvement:

Webinar Liemar / Meco with Infosteel

Webinar Liemar / Meco/ Intal Building with steel

Method 3: R&D

Research has shown that R&D focused on your business processes leads to higher efficiency. And R&D focused on product development yields higher quality. These are both important aspects of productivity improvement.

It also shows that sales, business and productivity growth are strongly correlated with investments in hardware, software and communication tools. This explains why the companies that invest in ICT are getting stronger and stronger, and competitors that do not make these investments are put at a disadvantage.

Can we help you take steps toward significant productivity growth? Then get in touch with us!