We’ve talked about downtime before on this blog, but we haven’t exactly gone into specifics, and how fast costs can add up because of downtime.
Some companies are aware of the costs of business downtime while others know it is undesirable, but they don’t know what it is costing them exactly. In fact, 67% of companies do not know the financial cost of downtime to their business. Downtime costs add up fast. Below are some data points that illustrate typical revenue losses that are a consequence of business downtime for a handful of surveyed companies:
- 54% of these companies experienced estimated losses of $10,000 – $100,000 an hour.
- 25% of these companies experienced estimated losses of $100,000 – $500,000 an hour.
- 13% of these companies experienced estimated losses of $500,000 – $1 million an hour.
- 4% of these companies experienced estimated losses of greater than $1 million an hour!
So what is downtime? Downtime is basically a period of time in which your business processes are put on hold due to construction, infrastructure changes, reorganization, remodeling or anything else that can disrupt the daily functions of your business. Construction downtime can be especially taxing: airborne particles, dust, paint, various messes and noise pollution can be highly disruptive to your daily business processes and your employees’ productivity.
During periods of downtime, you are losing out on output and the ability to address the needs of your customers. Employee productivity can go down and your customer service can suffer. Losses from downtime can include revenue from product, customer loyalty, loss in efficiency and more. If you want to run a successful business, you will certainly want to avoid downtime as much as possible, or at least minimize its overall impact.
With our modular construction method, installation of a modular building is minimally invasive. We manufacture the components of the building in our factory and then ship the components to the build site, where we install the building quickly and cleanly. Our construction method is much more efficient than traditional construction methods, which can involve messy, time consuming processes such as drywall work, patching, and painting. With our modular construction method, we can reduce your business downtime to minimal amounts, or even eliminate it altogether, allowing you to continue your business processes without interruption or loss in revenue.