Workplace Accidents Drain Manufacturers’ Profits
U.S. companies spend around $170 billion each year on expenses related to workplace injuries and illnesses. These expenditures come directly out of a company’s profits.
When a business invests in improving safety, it may reduce costs associated with worker injuries and illnesses between 20 and 40 percent, according to the U.S. Occupational Safety and Health Administration.
Savings like these can make the difference between a thriving business and one that’s floundering. Worker injuries and illnesses cost firms in the following ways:
- Workers’ compensation expenses
- Decrease in productivity
- Dip in employee morale
- Wages for temporary help
- Drop in profits
- Lawsuits and fines
- Cost of retraining
Illnesses, injuries and fatalities cost manufacturers billions of dollars each year. Employers spend more than $1 billion every week for workers’ compensation to cover severe workplace injuries and illnesses according to a 2016 Workplace Safety Index by Liberty Mutual.
OHSA Fines Increase
Failure to comply with government standards can cost you. Beginning in 2016 OHSA fines have been adjusted for inflation for the first time in 25 years. As of late 2016, the estimate was up to $12,600 per regular violation, a mandatory $12,600 per serious violation, and up to $126,000 for each willful and repeat violation. The new penalties will continue to fluctuate.
Beginning in 2016 OHSA fines have been adjusted for inflation for the first time in 25 years. As of late 2016, the estimate was up to $12,600 per regular violation, a mandatory $12,600 per serious violation, and up to $126,000 for each willful and repeat violation.
Businesses that manage safety and health with an effective system can reduce the expenses associated with employee accidents. Gains come in the form of reduced workers’ compensation payments, better attendance, lower medical costs and an avoidance of fines and penalties.
Hire a Safety Facility Contractor
Your plant’s reputation is too important to leave to guesswork. If you don’t have internal safety experts, hire someone who can help you. Storee Construction is a leader in plant safety. Our facility safety contractors help you create a workplace that’s safe for workers and visitors. Our team has assisted companies in Missouri, Kansas, Arkansas and Oklahoma.
A company with a safety system can expect increased profitability. Employees are more productive when they work in an environment that supports health and safety. A business with a poor record for accidents can’t attract and retain top employees.
Be Proactive With Safety
You can avoid costly safety compliance missteps by conducting a review of your manufacturing plant. Safety upgrades have an outstanding return on investment according to OSHA. The agency estimates $1.90 reduction in costs per $1 spent on improvements.
Storee Construction has helped businesses improve their manufacturing plants with the following upgrades:
- Installing safety guardrails and handrails in elevated areas
- Building catwalks, cross-overs and ladders to eliminate exposure to moving equipment
- Covering or restricting holes and openings
- Requiring use of proper fall protection devices
- Installing equipment safety shutoffs and equipment guarding
- Protecting pedestrian walkways from spills and industrial traffic
A plant walk through can identify compliance risks. Storee’s facility contractors will help you prioritize improvements and work with you to ensure minimal disruption to production schedules.
Manufacturers can contact Storee Construction for factory layout and industrial safety installations at 888-736-2032. www.storee.com.
Updated December 16, 2016. Originally posted May 23, 2012.