Images

Surviving the Tariff Turbulence

How Smart Shift Scheduling Can Protect U.S. Manufacturers

Trade tensions are heating up again, and U.S. manufacturers are feeling the pressure. With tariffs on steel, aluminum, and other key imports driving up costs and supply chain disruptions causing delays, uncertainty is at an all-time high. How do you keep production steady while managing workforce stability and financial risks? The answer lies in smart shift scheduling.

Whether you’re ramping up or scaling down, having a flexible workforce strategy can make all the difference. Let’s explore practical shift scheduling tactics that can help you stay resilient during turbulent times.

Navigating Uncertainty: Focus on One Key Variable 

Manufacturers are juggling more moving parts than ever. Some are stockpiling materials, others are holding back on orders due to bottlenecks, and some have already cut jobs despite mixed economic signals. In such a volatile environment, trying to respond to every external factor can be overwhelming.

Instead of reacting to every swing in supply chains, prices, or tariffs, the best move is to focus on one key variable: your production goals. Do you need to ramp up to meet demand? Or are you scaling back to weather the storm? Your scheduling decisions should align with your answer. By making your production output the guiding factor, you can navigate uncertainty more effectively while avoiding reactionary decisions that may not serve your long-term strategy.

Shift Scheduling Strategies for Any Market Condition

When Ramping Up:

      • âś… Planned Overtime: Need to boost production without committing to new hires? Strategically using overtime can help you scale up while keeping labor costs in check. This approach ensures you meet demand spikes without long-term payroll burdens.
      • âś… Temporary Workforce Expansion: Hiring temp workers allows you to respond quickly to demand surges. It provides flexibility without locking you into permanent workforce commitments, ensuring responsiveness to short-term market fluctuations.

When Ramping Down:

      • âś… Discretionary Work Management: Instead of sending workers home, schedule essential but non-urgent tasks (like maintenance and training) during slower periods. This keeps employees engaged while ensuring operations remain efficient.
      • âś… Planned Time-Off Management: Encouraging employees to take vacation or personal leave during downturns balances workforce availability and prevents the need for sudden layoffs.
Keep Your Workforce Engaged—Or Risk Losing Them

Uncertainty doesn’t just impact your bottom line—it affects your employees, too. When workers fear job instability, they start looking elsewhere. Even if you’re cutting hours now, a market rebound could come fast, and you don’t want to be short-staffed when it does.

Communication is key. Address their concerns directly:

      • Why are production levels changing?
      • How long might this last?
      • What steps is leadership taking?

Employees don’t want to be left in the dark. In the absence of clear information, the rumor mill takes over—and bad news spreads fast. Keep your workforce informed through regular updates, open forums, and direct conversations. The more transparent you are, the more likely they’ll stick with you through uncertainty.

Final Thoughts: The Power of Smart Scheduling

Adapting to shifting economic conditions is challenging, but flexible scheduling strategies can make all the difference. By focusing on production goals as your key variable—rather than reacting to every external swing—you can make better workforce decisions and maintain stability. Whether it’s planned overtime, temporary staffing, or strategic time-off management, these tactics help manufacturers stay agile and ready for whatever comes next.

Want to ensure your workforce strategy is resilient? Let’s talk. Schedule a free consultation today. 

 

Reduce Overtime: Fact vs. Fiction

Many companies believe that solving overtime issues is as simple as implementing the “perfect schedule” to save significant costs. While scheduling plays a critical role, the truth about overtime is more nuanced. In this article, we’ll explore when schedule changes can genuinely reduce costs, and discuss how overtime impacts your workforce and operations. Let’s look at this idea more closely.

When a Better Schedule Saves Money

The idea that a better schedule can cut overtime costs dramatically holds true under the following condition: your current schedule is inefficiently allocating labor. For example, if some parts of the week are overstaffed while others are critically understaffed, redesigning the schedule to balance coverage can indeed save money.

In a different scenario, if your operations are expanding or your workforce is fixed, increasing demand will inevitably lead to higher overtime. This rise in overtime brings several challenges:

    1. Increased Fatigue: Long hours wear down employees, leading to higher stress and lower overall well-being.
    2. Productivity Decline: Employees working excessive hours are less efficient.
    3. Higher Accident Rates: Fatigued workers are more prone to errors and accidents.
    4. Quality Issues: Overworked employees are less likely to maintain high-quality standards.
    5. Turnover and Absenteeism: Burnout contributes to higher absenteeism and attrition rates.

The perfect schedule will allow you to keep these from happening.  It does this by allowing you to add straight-time hours to “replace” overtime hours—without the risk of overstaffing.

The Role of the “Perfect” Schedule

A well-designed schedule won’t eliminate overtime entirely but can strategically replace overtime hours with straight-time hours. This is particularly effective for maintaining a productive, engaged, and safe workforce while meeting operational demands. However, there’s a key consideration: the cost of straight-time hours isn’t significantly lower than

overtime. Straight-time costs include wages, benefits, and taxes, while overtime includes a premium rate and taxes. From a financial perspective, these often balance out. For example, if you save $1 million in overtime costs through a schedule adjustment, you’ll likely spend a comparable amount in straight-time costs to maintain the same coverage.

What’s the Right Overtime Rate?

For companies with stable production levels, an overtime rate between 5% and 15% is typically ideal. This strikes a balance between operational flexibility and workforce satisfaction. It’s also worth noting:

    • Around 20% of employees actively avoid overtime.
    • Another 20% seek out as much overtime as possible.
    • The remaining 60% are comfortable with moderate overtime levels.

If you’re unsure how your workforce feels about overtime, don’t guess—ask them. Employee feedback can provide valuable insights into what’s working and where adjustments are needed.

Summary
Overtime management is about more than just cost reduction—it’s also about maintaining workforce health, safety, and productivity while meeting operational goals. A balanced approach, supported by an optimized schedule, can help you replace excessive overtime with straight time and create a more sustainable workload for your team.

Let’s Talk
Want expert guidance on optimizing your operations and managing shift work challenges? Contact us today at (415) 763-5005 or complete our contact form . Let’s work together to create solutions tailored to your unique needs.

Consent Preferences