Avoid the Costliest Risks to your Manufacturing Business

posted on: Friday August 28, 2015

uspo Load MoverWe’ve discussed the gruesome details before – workplace injuries cause the greatest devastation to manufacturers. The costs – monetary and otherwise – ripple out from workman’s compensation to insurance spikes to reputation. The actual cost of an injury to an employer is monumentally higher than the workers’ compensation payout.

Since manufacturing is one of the highest-reporting industries for workplace injuries every year, it’s important to understand just what an injury costs, what kinds of injuries are most common, and how to best prevent them.

As we mentioned in “How Much Does an Injury Actually Cost Your Business?”, the actual cost of an injury includes:

Direct costs

  • Medical bills, including surgery
  • Manual therapies
  • Splinting aids
  • Lost wages
  • Impairment award (in certain cases)

Indirect costs

  • Training replacement employees
  • Accident investigation
  • Corrective measures
  • Repairs
  • Extra administrative work
  • Productivity costs due to absenteeism
  • Lowered employee morale
  • Insurance premium hikes
  • Damaged reputation

In the aforementioned article, we used the formula from the SafetyXChange site to determine the actual cost of an injury. The final total will depend on your profit margin. Using the formula, we determined that a $2,000 injury at a company with a 20% profit margin would require $55,000 in revenue to make up for it.

The most common injuries are those to the back. In “The Most Common Work-Related Injury and What it Costs the Employer,” we explored some cost scenarios for back injuries. We determined that the average direct cost of a back injury is $8,500. Using this figure, the total revenue required to offset the injury was $425,000 for a company with a 10% profit margin and $212,500 for a company with a 20% profit margin.


To form a solution, it is helpful to know which injures are the most likely to occur. According to the 2014 Liberty Mutual Workplace Safety Index, injuries caused by overexertion like pushing and pulling were once again identified as the leading cause of the most disabling workplace injuries. The direct costs alone amounted to $15.1 billion for 2012.

Preventing these injuries is ALWAYS the best answer, and in the end, the least costly. Most solutions to injury prevention actually increase productivity, morale, and other beneficial aspects of production.

When it comes to ergonomic and safety equipment used in manual material handling, nothing has a more stellar reputation than the battery-powered tug.

Power tugs, also called tuggers or cart pushers, eliminate the manual strain of pushing and pulling. They allow one person to move thousands of pounds and multiple carts in one load. Tuggers prevent injuries and significantly increase productivity. They’re incredibly practical and useful in numerous applications. For information on how a powered tug will benefit your business, contact Load Mover Inc. We build quality powered tugs and excel at customer service. Contact us at 952-767-1720 or info@loadmoverinc.com.