Tariffs only harm the uncompetitive, those with higher prices to begin with. Those with the lowest prices, or those delivering the greatest value, will be hurt the least.
Competitiveness depends on productivity
Tariffs, like any tax, merely add to the cost of anything to which they are added. It’s the consumer who pays the price who suffers the most. The consumer will always look for either the greatest value (i.e.: result vs spend) or the lowest cost, all other metrics or indicators of value being equal.
We must have low cost and deliver high perceived value to be competitive. Without that we flounder. A measure of how well we achieve that is “productivity”. As a nation we measure it as GDP per hour worked. In 1984, Canada’s productivity was 88% of the USA’s, and by 2022 it had fallen to 71%. We also lag the G7. To improve we need to do work that adds more value, and do our work more efficiently (i.e.: do more for less). Canadian productivity is low because we don’t have enough high value industries, and we are not as efficient in the work we do. Both result from investment in the wrong things, and lack of investment in the right things. Milking companies for short term shareholder gains, compromises those investments.
Productivity depends on value and efficiency
Efficiency in production means producing more for less. Equipment and system breakdowns cut into production, idle operators and increase repair costs. If those happen unexpectedly, the costs are higher by a factor of 3 or more. That is avoidable, and maintenance doesn’t need to be as expensive as it is today.
Getting more for less requires a transition from inefficient to efficient. Merely reducing costs without changing what you do usually lowers efficiency.
Increase efficiency
We know how to get the most out of your maintenance dollars. Typically we can save you 20% and the increase in productive uptime provides more output. Many of our clients have lowered costs by that much (and more), and increased production levels substantially. One even earned $600 million additional revenue in just 8 months!
That’s added productivity and efficiency. Let’s talk about what we can do for your business.