Top 4 Surprises from Tool Tracking Survey
ShareMyToolbox recently republished a tool tracking survey conducted in partnership with the Construction Financial Manager’s Association (CFMA) and the ICCIFP. This tool tracking survey was one of the most comprehensive looks at how companies are tracking small tools and equipment in the industry in the last couple years. Though most companies do own small tools you may be surprised by the following statistics:
50% of contractors don’t track small tools and equipment at all!
It is surprising but most contractors have totally abandoned trying to track tools. This is likely why most construction worker’s garages are well stocked!
75% of contractors replace at least 30% of their tools EVERY year.
Think about the number of tools you buy that have lifetime warranties. How many tools have useful lives of 3-5 years? For most companies this is irrelevant. They are replacing a full 1/3 of everything they buy each year. Don’t you wish you got a rebate for lost tools?
44% of contractors expense all tools to jobs when purchased
While this seems logical it does open the door to some strange job cost scenarios. Most project managers in today’s industry have pay incentives tied to job profitability. When one superintendent benefits from getting all the “used” tools on his job his costs are significantly lower than the project manager who bought the tools and expensed them. This can reward the hoarder who collects tools from all other jobs and hides them for future use. Don’t reward the hoarder!
26% of contractors who bill for tools only do so as a control mechanism
This is really surprising. Think about the amount of time spent costing and billing a repetitive item like a tool. From the person in the field who has to fill out a time sheet to the person in the office entering this into a billing/costing system. It takes a ton of effort to generate a defensible billing in construction. Isn’t there an easier way to control tools than to bill them?
If you found these responses interesting please take a look at the full survey to see how your company compares to the industry averages. You can find the tool tracking survey and more tool tracking tips here.