As with any business, the goal for most screen printers is to produce the highest quality product. But what happens when your bottom line has nothing to do with the profitability of your print shop’s products? Many screen printers find that production costs can eat away at their profit margin, leaving business owners to wonder how these costs can be better managed.
We’ll be breaking down the main categories of manufacturing costs to help you learn how to reduce production costs in manufacturing with computer-to-screen printing technology. With added efficiency and fewer production costs, your business will have the opportunity to yield a higher profit with room for exponential growth.
Main Manufacturing Costs
Generally, manufacturing business costs can be separated into three groups: labor, raw materials, and overhead. Keep reading to learn more about each of these categories and discuss how you can limit the costs.
Labor
- Functioning businesses need bodies, but labor costs can be a big expense, especially for small businesses. To ensure you aren’t overpaying in labor costs, look at your production processes, employee scheduling, and staff count. You may find inconsistencies in production time and employee efficiency that could be streamlined with computer-to-screen technology.
Raw Materials
- Raw materials tend to be a draining, but necessary, cost for all businesses. You should look at the suppliers you are ordering from and do research to ensure you’re receiving your products at the lowest price possible. Finding affordable alternatives for the office supplies that you usually buy can have a significant impact on your saving efforts.
- Additionally, you may want to consider getting a computer-to-screen printer for your print shop. CTS technology eliminates the need for film in the production process of screens. Fewer screens lead to fewer user errors in the production process, which then increases cost savings for raw materials overall.
Manufacturing Overhead
- Rent and utilities, like water and electricity, are all considered overhead manufacturing costs. If the rent for your print shop is becoming increasingly more expensive, then you may want to consider either negotiating a new lease or moving elsewhere.
How to Reduce Costs
Whether your print shop is going through hard times or you are simply looking to cut down on expenditures, there are ways to cut manufacturing costs without compromising quality. Follow these steps to help establish a plan to get your print shop running efficiently with as little manufacturing costs as possible.
Audit your print shop
- No one knows your business better than you do, but when considering how to reduce manufacturing costs, it’s important for you to go through your business and expenses with a fine-tooth comb. Carry out an audit of all your key operating costs and track them so that you can assess what can be eliminated or changed.
- You should also look at your overhead costs like facility rent, insurance coverage, utilities, general office supplies, and other essentials. You may be able to negotiate better rates for utilities or get out of your current rental contract if you feel you are paying too much.
Reduce costs of materials
- Screen printers are notorious for maintaining loyalty to their favorite brands. But while quality control is important, you may want to look at sourcing less expensive materials. If you find that you can’t switch brands without sacrificing quality, you may be able to find a more affordable supplier for your favorite brand. Ask about discounts for bulk, cash-only, and affiliate purchases.
Evaluate Production
- Depending on the kind of work that your screen printing business produces, production costs may be your biggest expense. Look at the way your products are made and get rid of anything that is particularly time-consuming. To get to the root of the problem, you’ll need to break down every step in the production cycle and track how long each stage takes. Automating your processes may take up quite a bit of time, but the results can save you more time down the line.
Cut out excess
- From surplus packaging to subsidiary materials, cutting out excess doesn’t only benefit your overhead cost. It can also make a positive impact on the environment. Unnecessary packaging is wasteful, but it can also make your product heavier, which in turn raises shipping costs. You can also convert your documentation to paper-free applications, reducing the cost of paper printers, ink, and paper.
Cut labor costs
- This increasingly technology-centered industry means that there is a lot of opportunity to repurpose valuable manpower into more productive tasks. Where there are more automated solutions for certain processes that may be labor intensive, shuffling personnel is practical. It also provides an opportunity to off-board less productive staff.
How CTS Technology Saves You Money
Computer-to-screen technology is an amazing addition to print shops of all sizes. Because computer-to-screen printing is faster, these products allow you to spend less time in pre-press. Manufacturers can expect their laborers to be more effective with more efficient processes.
CTS also streamlines the traditional art production and printing time, yielding a faster and more precise end result. Additionally, you can pair a CTS system with an LED exposure system to reduce the manpower required to produce screens; this will allow one person to image screens while simultaneously exposing screens for better efficiency in the screen room.
Choose EXILE Technologies
If you are looking to find out how to reduce production costs in manufacturing with computer-to-screen printers, look no further than EXILE Technologies. Our lineup of efficient, cost-saving products will not only help you improve the efficiency of your staff, but also allow you to cut costs significantly in other areas of your business. For more information on our CTS machines and the benefits of introducing them into your print shop, contact us today. We offer warranties and support to all our customers, as well as the option for financing.
