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Safety Management Insights

How Defective Equipment is Bad for Business

Posted by Kevin Shoemaker on Jan 14, 2020 11:56:11 AM



Every business owner wants to save on costs, especially when it comes to expensive equipment. However, overusing older equipment or not performing routine maintenance has the potential to result in defective equipment. And when this happens, it can reflect poorly on your company in a number of ways.

It Causes Injury

Many workplace accidents occur because a piece of machinery is defective. And while occasional accidents are inevitable, those due to defective machinery are preventable. Accidents from defective machinery can lead to serious injuries for employees, and they also may lead to fines or lawsuits for your company. An employee who is injured due to defective equipment may go beyond a simple worker's compensation claim and file suit. And depending on the nature of the accident, it's possible that OSHA fines may be involved. Of course, if your company has recently seen an accident due to defective machinery, it's a good idea to consult us to help you handle the next steps.

It Reduces Productivity

Whether you choose to repair or replace equipment, it's important to do something about it. This is because defective equipment slows down productivity and harms your bottom line. Even a defect that seems minor, like an oven that needs to be switched off periodically so it doesn't overheat, has an amplified impact over time. By quickly addressing equipment defects, you can minimize the impact that defective equipment has on your business. And since defective equipment usually will continue to decline, it's usually in your best interest to address it as soon as possible.

It Reflects Poorly on Your Business

Defective equipment also harms your company image. This is especially true of customer-facing ventures. For instance, if you run a food establishment and a given machine is constantly broken, word is likely to spread, and business is likely to suffer. Many business owners don't want to shell out money for a repair, but they also fail to consider what the defective equipment is costing the business in the long run.

While nobody wants to work with defective equipment, not everyone realizes the potential damage it can do to your company. With some consideration of both short-term and long-term costs (and with some consideration of employee well-being), you'll realize that repairing or replacing defective equipment is essential when it comes to running an efficient and successful business.

To make sure your equipment is all working properly, take advantage of our job safety analysis software!