Viability as a Long Term Strategy = Low Cost Producer

The “V” in our S.E.R.V.I.C.E. Principles states: “The Long Term viabiltiy of our business depends on being a low-cost producer, which includes economies of scale, purchasing power, and efficiencies. Our long term Viability depends on having a strong workforce ready to work. And to lead. Our People are our Strategy.”

Viability as a low cost producer requires constant vigilance in both cost reduction and cost management . This does not mean cutting corners or simply choosing the cheapest option available. It means making disciplined decisions that account for quality, reliability, parts selection, uptime, safety and total cost of ownership. Responsible parts selection is one example: it may be more attractive to select a lower cost part but if the performance of that part is degraded, then it could increase downtime and additional maintenance problems, all would lead to being the more expensive choice. The same principle applies to labor planning, maintenance practices, production decisions, and all other factors that we face every day that affect the financial performance of an operation.

Cost management also carries a downstream effect. Increased operating costs do not remain isolated within a plant or business unit. They ultimately influence material pricing, competitiveness, project costs and prices paid by contractors, consumers, public agencies and taxpayers. Keeping costs down helps maintain competitive advantages while supporting reliable productions and responsible use of our resources. A viable low cost producer is one that consistently challenges waste, makes informed decisions, protects quality, and understands that every dollar saved through best management practices strengthens both operations and the customers we serve throughout our industry.