How Alcoa Howmet saved $1,900,000 per year by focusing on workplace safety

By, Sharon on Monday August 02, 2010

By Frank Kenna

Alcoa Howmet did this in one 700-employee plant, by focusing on workplace safety.

In an article in New Jersey’s Daily Record, reporter Minhaj Hassan tells how Dover, NJ-based Alcoa Howmet did just that.  She reported: “Fifteen years ago, the plant spent approximately $2 million annually on injury claims. Last year, though, after it installed safer and ergonomically friendly equipment, injury claims fell to about $100,000 annually, or about 95 percent less. Also, about 15 years ago, about 20 employees missed an average of two weeks of work time due to work-related injuries. Last year, there were zero injuries and zero days lost to injury.”

You can click the link above to see how this was done, but my point here is a little different.  And that is, it’s easy to look back and see how much savings a particular program saved you or your company.  But much rarer is the manager who can look forward and see the same on the horizon.

We experience this all the time with our customers. Marlin sells workplace communication programs aimed at preventing workplace injuries, supporting continuous quality improvement, improving employee motivation and workplace productivity. When we ask our customers how much they have saved by using our program, they report returns on investment of between 347% and 1,083% depending on the industry they’re in. We experience this all the time with our customers. Marlin sells a workplace communication program targeted to preventing workplace injuries, supporting continuous quality improvement, improving employee motivation and productivity. With numbers like those, you’d think that selling our product to new prospects would be a piece of cake.  But it’s not, because the average manager finds it hard to justify spending money now to produce savings later.  They tend to be focused on today’s problems, this quarter’s numbers, and this year’s budgets. 

But for those who CAN see into the future… the savings can be spectacular as reported above.  What’s in your crystal ball?

Thanks!