Raise Your Effective Labor Rate

Effective labor rate (ELR) is the amount that tells you exactly what your shop is making per billed hour, so, the higher the better, right? 

According to the 2019 Ratchet+Wrench Industry Survey respondents, raising it may be as simple as implementing lean strategies. 

Have you incorporated any lean strategies? 

ELR of $90 or more: 57%

ELR between $50-$59: 4% 

ELR Less than $40: 4% 

According to the survey, common lean strategies include:

• Going paperless 
• Utilizing tablets 
• Holding short meetings to assess production  
• Well organized inventory
•  Tracking efficiency

For more tips on raising your effective labor rate, head to ratchetandwrench.com/maximizeELR