Here are 4 places to start:
1 Reduce driving time
A huge amount of money is spent on drive time. Take time to understand the geography, traffic, and client proximity. Don’t take on new clients who are too far away, unless there is a strategic advantage for the future that justifies the offset.
2 Increase capacity
Have your plans in place by September for subcontractors and additional equipment. Having additional capacity will allow you to handle breakdowns, new opportunities for growth in-season, and make your company more safe.
3 Reduce labor costs
Review your equipment and consider trucks with larger salt capacity. Using trucks with smaller spreaders on larger routes is inefficient, racks up unbillable time when driving to refill, and creates service interruptions.
4 Upgrade equipment
Investing in larger equipment and plows and pushers with finer controls (e.g., hydraulic wings, surface pressure, sectionals, etc.) can drive down your costs over time but will require more up front financial commitment. Create a multi-year plan to upgrade your fleet and standardize as much as possible for ease of repairs, familiarity, and replacement parts.