Effective labor rate (ELR) is the amount that tells you exactly what your shop is making per billed hour, so, the higher the better, right?
According to the 2019 Ratchet+Wrench Industry Survey respondents, raising it may be as simple as implementing lean strategies.
Have you incorporated any lean strategies?
ELR of $90 or more: 57%
ELR between $50-$59: 4%
ELR Less than $40: 4%
According to the survey, common lean strategies include:
- Going paperless
- Utilizing tablets
- Holding short meetings to assess production
- Well organized inventory
- Tracking efficiency
For more tips on raising your effective labor rate, head to ratchetandwrench.com/maximizeELR
